Despite analysts' generally gloomy view of the Taichung property market, Mr Chan claimed he felt upbeat: 'I am positive about the Taichung property market in the long term.' According to Mr Chan the market would not be hit by the current cross-strait tension.

Heirloom is a 30-storey residential tower in the centre of Taichung. It consists of 100 serviced apartments, ranging from 3,102 square feet to 3,798 sq ft.

For Hong Kong buyers, the selling price of each apartment is set from HK$6.16 million to $9.7 million.

The average price is $2,800 per sq ft, much less than the $5,000 to $6,000 per sq ft cost of luxury projects in Hong Kong.

Mr Chan said rentals for Heirloom serviced apartments could reach NT$150,000 (HK$42,615) per month, representing a yield of five-six per cent.

With expected high investment returns, Mr Chan said the project would attract Hong Kong investors.

'It is good for long-term investment,' said Mr Chan, adding that his firm would act as the leasing agent for Hong Kong buyers marketing their Heirloom apartments.

But the market's outlook is still uncertain in the short term, analysts said.

Taichung is one of the cities in Taiwan suffering from a huge housing glut and tumbling prices.

Unsold apartments number in the tens of thousands and home prices have fallen at least 20 per cent. Transactions are reported to have plunged 60 per cent in the last three years.

But Long Bon president Lee Chih-chun claimed the oversupply affected medium-priced apartments leaving the luxury sector unaffected.

He admitted the city's slowing property market had trimmed profit margins for Heirloom to 10-15 per cent from the 20-30 per cent averaged a few years ago.

He projected returns of NT$3.6 billion, assuming that the entire development was sold.