Economic recovery to boost price of residential units

PUBLISHED : Tuesday, 22 January, 2002, 12:00am
UPDATED : Tuesday, 22 January, 2002, 12:00am

Chinese Estates Holdings chairman Thomas Lau Luen-hung expects residential property prices to rise about 3 per cent this year, given an improving economy in Hong Kong.

He said home prices were very low and there was almost no chance of further price falls.

'Personally, I think property prices will go up about 3 per cent this year, if the economy continues to improve,' he said.

He expected rent increases in some prime shopping arcades.

Mr Lau said Chinese Estates was considering increasing its land reserve in Hong Kong. It would target land suitable for residential development in urban areas in response to growing demand. Chinese Estates would consider applying to buy land from the Government's land application list, or seek opportunities in public auctions, he said.

Mr Lau did not say whether the company was interested in the two residential lots for sale in next month's land auction.

Mr Lau was speaking yesterday after a signing ceremony with Centaline Property Agency for the sale of Sunrise Villa, in To Kwa Wan.

Centaline said the project, with 180 units ranging from 745 square feet to 890 sq ft, had launched internal sales in the past few months at about HK$3,000 per square foot. It said the developer was finalising details for a public sale.