Hong Kong developers test home-market recovery by raising prices, trimming discounts

Developers in Hong Kong are testing the housing market’s recovery by nudging prices up or paring discounts as improving sentiment and a rebound in transactions boost confidence in the city’s property sector.But analysts said the moves remained uneven, with many newly launched projects still offering sizeable concessions as developers continued to prioritise clearing unsold inventory accumulated during the market downturn.New World Development plans to cut the discount offered under the 120-day immediate payment plan at its Deep Water Pavilia project in Wong Chuk Hang from 8 per cent to 5.5 per cent starting on Monday, effectively raising prices by about 2.5 per cent.Most of the project had already been sold, with only a handful of smaller flats and several larger units still available, according to sales information released by the developer.Other developers have taken a more direct approach. At the Grand Mayfair project near Kam Sheung Road station in Yuen Long, led by Sino Land, the developer recently raised prices on more than a dozen units by between 1.4 per cent and 7.1 per cent.Some developers are lifting effective prices by scaling back incentives rather than adjusting headline prices, analysts said.