Price cuts on agency agenda as sale flops

PUBLISHED : Thursday, 18 December, 1997, 12:00am
UPDATED : Thursday, 18 December, 1997, 12:00am

The Government is considering cutting prices of its surplus flats in Pokfulam after receiving just one bid for the latest tender of 40 units.

Government Property Agency chief property manager Francis Shum Kwok-sher said the sole bid for a unit in Baguio Villa had been accepted.

The buyer offered a $4,000 premium on a $14 million reserve for a 2,330-square-foot unit, with a car park.

Mr Shum attributed the poor response to buyers' fears of further falls in property prices.

'In addition, banks' tight mortgage lending policies make it more difficult for potential buyers to get financing,' he said.

'We will consider reviewing the reserve price for unsold units in response to market trends.' The asking price for the 40 units in Baguio Villa ranges from $11.05 million to $14.6 million. All units measure 2,330 sq ft.

The agency has started selling 94 surplus government quarters through public tender in three batches.

So far, 11 units out of 54 offered in the first and second batches have been sold, garnering revenue of about $144 million.

The 39 unsold units in the second batch and another 40 Baguio Villa flats in the third batch, will be offered for tender on December 30.

Bids will have to be in by January 5.

The agency expected to net at least $1.27 billion if all 94 units were sold.