Key Takeaways:
(Bloomberg) -- A new residential project by Henderson Land Development Co. in Hong Kong was approximately 15 times oversubscribed, a strong signal that buyer demand in the city’s property market is heating up after a prolonged downturn.
"Additional units are expected to be launched after the first round of sales," Thomas Lam Tat-man, general manager of sales (1) department at Henderson Property Agency, said, adding that "prices will be adjusted upward subject to market response."
The developer received about 2,350 registrations for the first batch of 150 units at its Highwood (Phase 2) project in the To Kwa Wan district. The initial offering is scheduled for sale this Saturday, May 9.
The overwhelming interest points to a potential recovery in one of the world's most expensive housing markets. It reflects growing optimism that home sales are rebounding, a sentiment that has lifted shares of property developers.
The positive reception for Highwood comes as analysts turn more bullish on the city's property sector. Morgan Stanley recently upgraded Henderson Land and Link REIT to overweight, citing a broadening recovery in the Hong Kong property market beyond just the residential sector, according to a Bloomberg report. Shares of Henderson Land (00012.HK) rose 4.6% on the news of the oversubscription.
The strong demand for new projects like Highwood suggests that developers may have room to increase prices on future launches, which could further bolster revenue and investor confidence in the sector. The market will be closely watching the final sales results this weekend as a key barometer for near-term market sentiment.
This article is for informational purposes only and does not constitute investment advice.
