All 138 units in the Wong Chuk Hang neighborhood were snapped up within seven hours of Saturday morning’s launch, generating a total of HK$1.53 billion (US$196 million), according to property agents cited by the South China Morning Post.
The apartments, ranging from two to four bedrooms and priced at HK$8.5-37.2 million each, averaged around HK$21,000 per square foot (US$28,800 per square meter), a record low for new homes in the area, Bloomberg reported.
That was about 4.5% below the price at CK Asset Holdings’ Blue Coast project, which stirred a buying frenzy in the same area last year.
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An aerial photo shows a view of Hong Kong Island and Victoria Harbour at sunset on May 19, 2025. Photo by AFP |
Deep Water Pavilia was built by New World, the flagship property firm of the billionaire Cheng family and one of the city’s “big four” developers, alongside Empire Group Holdings, CSI Properties, Lai Sun Development, and MTR Corporation.
According to Louis Chan Wing-kit, CEO of Centaline Property Agency, the project appealed to both end users and investors due to its low price and convenient location, situated right above a mass transit railway station.
Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau, said about 40% of buyers were investors seeking rental income, while the rest were end users.
The strong sales are expected to deliver a much-needed cash boost to New World, which has been grappling with mounting financial pressure.
Just weeks earlier, in late May, the developer announced it would defer US$77.2 million in coupon payments on four perpetual bonds due this month, Reuters reported.
It became the second Hong Kong property firm to postpone such payments in recent years as the city’s property sector struggles with falling prices, sluggish sales, low office occupancy rates, and rising interest rates.
New World, however, has one of the highest debt ratios among its peers. It faces increasing pressure to repay loans if it cannot strike a deal with banks to refinance HK$87.5 billion in borrowings by the end of June. The company has pledged around 40 properties as collateral, including its flagship commercial complex at Victoria Dockside.
The Cheng family, Hong Kong’s third-richest clan with a fortune estimated by Forbes at US$19.5 billion, is also navigating succession challenges.
The group saw two CEO changes last year as Adrien Cheng, the third-generation scion previously seen as heir apparent, stepped down after the firm posted a record HK$19.7 billion loss for the fiscal year ending June 2024. His replacement lasted just two months after that.
