High price likely for Tai Po town houses
Hong Kong Parkview Group, Lai Sun Development and China Travel Service (Holdings) are considering pricing their luxury residential development in Tai Po at an aggressive $8,000 per square foot.
George Wong Kin-wah, chairman of Hong Kong Parkview, which is also the project manager of the Tai Po joint venture, said the consortium planned to appoint a property consultant to conduct a massive campaign to market the housing development, which is to be launched by either the end of this year or in early 1997.
Mr Wong said property consultant First Pacific Davies was being considered but no final decision had been made.
He said the selling price for the project could be pitched at the $8,000 level, which would achieve a 'reasonable' investment return.
The consortium paid more than $4,340 per sq ft or $890 million in 1994 for a 256,183 sq ft site in Area 30, near Wong Yue Tan village, when the market was at its peak.
At a government auction last week, a neighbouring site was sold to Henderson Land Development for $535 million, or $2,930 per sq ft.
The Hong Kong Parkview project will offer 84 semi-detached town houses with communal recreation facilities, with a total building area of 204,516 sq ft.
Surveyors said total development costs, which include construction costs and interest payments, could reach more than $6,500 per sq ft.
S. K. Pang Surveyors & Co managing director Pang Shiu-kee said the $8,000 level could provide a reasonable return for the developers but he questioned whether those prices would attract buyers.
Selling prices for the established low-rise residential project Hon Lok Yuen in Tai Po ranged from about $4,500 to $4,800, said Mr Pang, adding that prices could reach $5,600 per sq ft for houses which had a better view and more furnishings.
Area 30 could not be considered an upmarket district, said Mr Pang, adding that a $5,500 to $5,800 selling level might be more attractive to buyers.