【Epoch Times July 11, 2024】Li Ka-shing’s Cheung Kong Property Holdings under the East Yihao Court in Dongguan, developed by Kwok Properties, recently released discounted properties with discounts of up to 50%.
In recent days, there have been reports in the real estate market that the East Yihao Court project developed by Kwok Properties in Dongguan has significantly reduced prices. The project has released 30 special discounted units, starting at a minimum of around 13,000 yuan (RMB) per square meter, with two-bedroom units starting at 900,000 yuan in total price and a down payment of 130,000 yuan; three-bedroom units at 1.2 million yuan in total price with a down payment of 100,000 yuan, etc. Mainland media have described this as an “unprecedented major price drop”.
On July 10, the mainland media “Daily Economic News” sought confirmation from the property advisor at the project. The property advisor stated that the units priced at 13,000 yuan per square meter are already sold out, and now only units priced at 14,000 yuan per square meter are available, with 10 existing units ready for immediate purchase for full payment, allowing for same-day ownership.
According to reports, the official WeChat account of the project also introduced eight units for group purchase, “limited time and quantity sold, immediate delivery of existing units”, priced at around 14,000 to 15,000 yuan per square meter, with a starting down payment of 140,000 yuan. These units are townhouses with a building area of 69 to 125 square meters.
The Dongguan Housing and Urban-Rural Construction Bureau website shows that the most recent presale permit for the East Yihao Court was obtained in June 2023, with a recorded unit price range of 31,000 to 43,000 yuan per square meter.
A senior real estate practitioner in Dongguan mentioned that the rough recorded price for the East Yihao Court units was around 24,000 to 27,000 yuan per square meter, indicating a discount of around 50%.
Chen Xueqiang, research director of the South China branch of China Index Academy, analyzed that the price reduction and sale of the East Yihao Court is not incidental but a marketing strategy of exchanging price for sales volume. In recent years, the transaction volume in the Dongguan new housing market has been relatively low, with a monthly average of about 2,000 units. Even with the relaxation of purchasing restrictions across the city, the market transactions have remained sluggish, putting pressure on developers to clear their inventory.
Several Dongguan real estate agents also stated, “The prices are very cheap now,” indicating that some units are being sold at a loss.
Li Xingwang, senior analyst at the Huafa Research Institute and director of the market research department of Huafa Splendid (China) Dongguan Company, mentioned that in recent months, there have been ongoing aggressive pricing strategies from various properties, reflecting the lack of confidence in the market among real estate companies for the year, and indicating challenges facing them in their operations.
According to data from the Huafa Research Institute, in the first half of 2024, Dongguan had a total of 8,129 transactions of new homes, a year-on-year decrease of 39%, reaching the lowest level in nearly six years. Moreover, the trend of trading volume for price in the housing market has become more apparent, with the city’s average transaction price falling from 32,200 yuan per square meter during the same period last year to 26,600 yuan per square meter, a year-on-year decrease of 17%.
Public information indicates that the East Yihao Court is located near Henggang Reservoir in Houjie Town, Dongguan, with a total area of about 7,000 mu and a total construction area of 2 million square meters. It boasts a 2,000-mu Yihao International Golf Tournament standard golf course, making it one of the few single-plate developments in Dongguan.