In recent weeks, there has been a lot of news about the tariffs war, which has had an enormous impact on the already exhausted economic activities. Following several weeks of stagnation in the first-hand property market, Sun Hung Kai Properties' new development, Sierra Sea in Sai Kung, has finally revived activity. As its public sales price is Hk $10,398 per square foot, which was 25% lower than the second-hand property prices in the same area. Sun Hung Kai Properties strategically adjusts the sales price of new projects to attract potential buyers. It is determined to sell its stock.
The anticipated property market boom following Chinese New Year, driven by new projects, did not occur as expected. Both new and 
second-hand property markets are sluggish, and the price per square foot is gradually decreasing. Therefore, Sun Hung Kai Properties hope to launch the Sierra Sea project to boost property market transactions with its unique selling points.
The project's initial price per square foot is low, but the tariffs war makes attracting buyers difficult. Even if all 158 units sell out on the first day of public sale, it will not reverse the declining property market trend. Recent new projects were sold out quickly at first, but sales soon declined. Sun Hung Kai Properties' new project is expected to follow this pattern.
Sun Hung Kai Properties must lower the price per square foot to below HK$8,000 to clear its inventory quickly. Otherwise, the 10,000 units in this development will not sell out for years. The sales performance of this project will act as a benchmark for the future first-hand property market. If the sales record is poor, it indicates that the market may not rebound and could potentially decline rapidly. Recently, with the decline in second-hand property prices, first-hand property prices are also expected to decrease.
Besides the ongoing tariff disputes heating up, there have been no recent developments indicating a resolution in the Russia-Ukraine conflict. Additionally, tensions remain high between the United States and Iran in the Middle East. The military confrontation in the Taiwan Strait has been rising. Due to the current geopolitical instability, it is advisable to postpone buying residential property.
