Hong Kong billionaire Li Ka-shing, after announcing the sale of his Panama Canal port assets, which sparked criticism from Chinese state media, has recently initiated significant price cuts and promotions at his residential project, Yu Cui Garden, developed by Cheung Kong Property Holdings in Beijing, drawing widespread attention in the market.
Situated in the Dongsihuan area of Chaoyang District in Beijing, the latest high-rise units at Yu Cui Garden have seen prices drop to 70,000 yuan (RMB, same below) per square meter on average, with a starting price of at least 9.8 million yuan, a decrease of nearly one million from the opening price in 2023.
Villa products have also received noticeable price reductions, with the smallest unit, at 345 square meters, now starting from 29 million yuan, down from 32 to 33 million yuan, with an average price of around 85,000 to 86,000 yuan per square meter.
In order to appease previous buyers who purchased at higher prices, the developer has introduced two compensation plans: one involves fixed-price renovation compensation, and the other offers cash subsidies ranging from 800,000 to 1 million yuan per unit.
Yu Cui Garden project originated from the Yaojiayuan site acquired by Li Ka-shing’s Hutchison Whampoa for 700 million yuan in 2001, with a floor price of only 1,750 yuan per square meter. The first phase, Yicui Garden, opened in 2005 at an average price of 9,000 yuan per square meter; the second phase, Yucui Shangfu, in 2011, saw prices increase to 29,000 yuan per square meter. In 2019, the project was officially named “Yu Cui Garden,” with a planned opening price of 100,000 to 110,000 yuan per square meter in 2022, but the actual record price in 2023 was 90,700 to 99,700 yuan per square meter. The current average price of 70,000 yuan per square meter is still 40 times the land acquisition price.
This is not the first price reduction for Yu Cui Garden. In late October 2024, the project offered 50 discounted units at 76% of the original price, at an average of 76,000 yuan per square meter, lower than the prices of surrounding second-hand homes.
Previously, Li Ka-shing had offered discounts on new properties in Hong Kong, Shanghai, Dongguan, and other places. The 30% discount at Yu Cui Garden in Beijing, along with the trend of other cities, signifies further adjustments to his mainland property strategy.
Li Ka-shing’s series of movements in real estate and overseas assets demonstrate his strategy to accelerate the realization of assets and return funds in the current economic environment.
Prior to this, Li Ka-shing’s Cheung Kong Property Holdings announced an agreement with a consortium led by the American company BlackRock to sell its overseas port assets for $22.8 billion. This transaction, involving geopolitical interests between the United States and China, has raised discontent among high-ranking Chinese officials, prompting relevant departments to conduct reviews. However, as the ports being sold are located outside mainland China and Hong Kong, it is believed that China may find it difficult to block this deal.