WingTai Asia puts 32 luxury units on market

PUBLISHED : Tuesday, 04 May, 1999, 12:00am
UPDATED : Tuesday, 04 May, 1999, 12:00am

Developer WingTai Asia will release 32 luxury units at its Waterfront development at Kowloon Station for sale next week at an average price of $5,678 per square foot, according to the company.

Analysts said the developer had sold more than 200 units during an internal sale last month, for an average price of about $7,000 per square foot.

This indicated the pricing of the public sale was 'just about right'.

Some of the flats sold during the internal sale were on higher floors and were priced at up to $10,000 per square foot, according to FPDSavills Realty.

The properties being offered next week did not have such commanding views, said analysts.

'There will be a lot of buildings blocking the view when all the other phases of the Kowloon station are completed,' one analyst said.

According to the developer, no flats with a full sea view would be sold in this batch.

However, the developer said 70 per cent of the Waterfront units would have some kind of sea view.

Prices for the 32 flats range from $5,000 per square foot for a 1,170 square foot flat in Tower III to $7,455 per square foot for a 833 sq ft flat on the 20th floor of Tower I.

Bulk prices for flats ranged from $4.9 million to $8.5 million, the developer said.

Edward Cheng Wai-sum, chief executive of USI Holdings, the Hong Kong property arm of WingTai Asia, said the small number of units released for public sale was in keeping with launches of Hong Kong property projects.

'I think it is normal market practice,' he said.

'As the market has time to absorb this development we will provide more units.' According to Mr Cheng, the developer was aware there had been few transactions in the second-hand luxury market when it was setting its pricing policy.

'It is all a question of balance,' he said.

'We have 705 units to sell and there are only one or two or three transactions in the luxury market.' According to one company official, the developer expected to make between $6 billion and $7 billion from the sale of the 705 units in the three towers.

Mr Cheng said WingTai Asia and its Singapore partners in the project were optimistic about the Hong Kong property market.

He was confident the asset bubble of 1997 would not be repeated.

Registration for the units will be held from May 11 to May 13. Results will be announced on May 15, with flat selection the next day.