In the second half of the year, the effect to withdraw the cooling measures has been fully digested, the first-hand properties have been sold less and less of the public sale. New Territories West is the hard-hitting area, in which the price war of first-hand properties is on fire.
Among of which, Golden Coast Bay has recently been lowered the selling price at HK$ 9,980 per square foot (psf). In response to this price reduction, the developer of neighboring SkyeHi has placed the last thirty-three units in the sales list with a lowered price of HK$ 9800 psf. This price was reduced by HK$ 8403 psf from the original price of HK$18,383 psf. It is equivalent to a massive 47% discount at the latest price.
Earlier of this year, major developers would avoid competing with each other to open sale of their new properties at the same time. Up to this moment, this market rule has been changed. They will compete each other by providing a more competitive price of their property in the same district. Nowadays, the pricing strategy of developers in the New Territories West has changed to aggressive price- cutting in quick action.
This altering strategy reflects the developers lacking confidence to the outlook of the property market.
In New Territories West, regardless of the first-hand or secondary property, the transaction price has been decreased by 30%.
The transaction price of Kingswood Villas has fallen to about HK$ 7,000 psf. The transaction price of first-hand property in this district can be as low as HK$ 8,000 psf in the third quarter, and the price of second-hand properties can slide down to HK$ 5,000 psf at the same time.
At present, the New World's The Pavilia Forest is available for sale and the sales price is HK$18,469 psf, which is 13% lower than the comparable new premises nearby.
Cheung Kong obtained a plot of land in Kai Tak District 2A in December 2022 and the accommodation value of psf of this land 
was only HK$ 6,138 psf. Cheung Kong is expected to sell this project in August at a costing price of HK$12,000 psf, which is 35% and 55% lower than the price of Pavilla Forest and The Henley that was opened for sale in April 2021.
Among the eighteen districts in Hong Kong, the property prices in Tuen Mun District took the lead to fall by 50% from the peak level, if the forecast is accurate, Kai Tak will become the second district where property prices will drop by more than 50%.
If the downtrend property prices are unchanged, there are at least four more districts, which property prices will decrease by more than 50% at the end of this year. Do not be silly, it is a foreseeable that property prices will fall by more than 50% in general at a later time.
