Hysan's sale fails to draw crowds

PUBLISHED : Monday, 24 August, 1998, 12:00am
UPDATED : Monday, 24 August, 1998, 12:00am

Hysan Development found few takers for any of the nine 2,903 square foot luxury flats in its Broadwood Park development in Happy Valley at the weekend despite asking prices which were about 50 per cent below last year's peak in July.

Area property agents said six potential buyers submitted bids on the flats in the 13-year-old building on Broadwood Road in Happy Valley.

About 100 people viewed the flats, according to Frank Marriott, managing director with FPD Realty, which along with Centaline Property Agency, are handling the sale of the units.

The area agents doubted that the potential buyers' bids would match Hysan's asking price on the luxury flats of between $5,500 to $6,800 per square foot.

Agents said that Hysan Development would have to be 'negotiable' on prices.

However, Mr Marriott said that the six offers were within the asking price range of $5,500 to $6,800 per square foot.

Mr Marriott estimated that half of the would-be buyers were serious in their bids.

'The developer will be discussing these bids within the next week or so,' he said.

Mr Marriott said he expected more bids in the coming weeks from people wanting to upgrade their flats.

The company, which is led by chairman and managing director Lee Hon-chiu, decided to release the flats on to the market in an attempt to raise cash and reduce its debt load.

According to some estimates, the firm's debt had increased significantly since its acquisition of the Entertainment Building in Central.

The disposal of non-core assets was an alternative to raising cash, said analysts.

They said Hysan could raise about $156 million if all the units were sold for about $6,000 a square foot.

The 36-storey development contains 72 units, according to agents.

Some agents said buyers would probably offer less than $5,000 per square foot for a unit on one of the lower floors.

However, a spokesman for Midland Realty said that the developer was not likely to go much lower than $6,000 a square foot for a unit above the 20th floor.

Flats available at Broadwood Park were located on the 2nd, 3rd, 4th, 5th, 10th, 23rd and 26th floors, agents said.

The flats offered a bit of a sea view and would be relatively good value for money, property agents said.

However, they added that other buildings - like the Beverly Hills which was selling for about $5,000 per square foot on the second-hand market - offered better views.

Hysan's asking price was about 50 per cent below transacted prices in July last year, said a spokesman for Midland Realty.

According to their figures, a unit on the 24th floor sold for about $11,000 per square foot in July last year.