Since July, the property market is going from bad to worse. The first-hand properties market is no exception. The developer in Kai Tak opened for sales its own project with the costing price. Typically, the first batch was sold eighty percent of the listing units. Unfortunately, the sales records of second batch dropped significantly to several dozens. Most of the developers, who own large projects with hundreds to thousands of units in Kai Tak, will face this terrifying curse.
The Pavilia Forest in the runaway district of Kai Tak has 1305 units. The developer of this project sold less than three hundred 
units with the costing HK$18026 per square foot (psf) in two separate sales. Indeed, it is an impossible task to sell the remaining one thousand units in near future.
There are several developers in runaway district which own hundreds to thousands of units. It includes The Knightsbridge天瀧(No. 2 in district 4), its accommodation value was Hk$ 19676 psf, Pano Harbour 華潤澐璟(No.2 district 1),its land price was HK$ 18090 psf, Cullinan Harbour 新地天璽海(No.3 indestructible 3), the land price was HK$ 17360 psf. the largest one is KT Marina, which is next the Pavilla Forest, and its opening price was HK$ 19789 psf. The total number of units in this district is over four thousand. To face this massive new-built units, the developers do not have a clue how to manage this problem. They hope that there is a miracle to save them. Unfortunately, the present business environment is pessimistic. Kai Tak has been transformed into a meat grinder to the developers. The more they have been sold, the more they will lose.
The developers have been increasing the price reduction quickly. The general reduction was between twenty to thirty percent. The partial reduction was up to forty to fifty percent.On the other hand, there is a whole floor that is opened to sell in lower floors in The Center. The asking price is HK$ 17,000 psf, and it is lower Hk$33,000 psf by 48.5%, which Cheung Kong sold to the investors in 2017. The whole floor is about 25,000 square foot. It is likely that the original landlords may suffer four hundred million losses if it is sold in the asking price.
This legendary transaction price was Hk$40.3 billion and it involved a number of famous investors in town. They own one to thirteen floors separately. The deal has been done until now, two thirds of these investors have been suffering the shortage of capital. The partial investors may eventually become bankrupt. Strictly speaking, it is another meat grinder to the investors. This also reflects the end of an era.
The meat grinder is slowly killing the developers and investors. The middle class is deeply worried about the downturn of the property market. In this generation, it is most important to be able to survive in this turbulence.
