Swire had started internal sales of flats at The Orchards two days earlier. By yesterday morning, more than 20 apartments had been sold at an average price of $4,600 to $4,700 per square foot.

Midland Realty sales director Jeffrey Ng said the initial response was encouraging, and added that the rain had been no deterrent to would-be buyers.

Estate agents said there was a lack of new home supply Island East, and that the units at The Orchards would attract homeowners living in the neighbourhood, in areas such as Taikoo Shing, who wished to upgrade their living environment.

The Orchards is a redevelopment on the site of the former Taikoo Primary School. The 442 units range in size from 700 square feet to 1,200 square feet in two 45-storey towers. There is a covered car park with 144 spaces.

The property is being marketed with a green theme. The buildings have four levels of sky-gardens, two on each tower, between the 38 residential floors.

Each unit has a private balcony with sweeping views of the surroundings.

Estate agents expected a good sales response for the project considering the shortage of new housing supply in Island East and the quality of the building, but they did not expect the average price to reach the $6,000 per square foot mark.

Swire Properties senior sales manager Mabelle Ma said the company's target price was an average $6,000 per square foot, and the minimum price for an apartment would be $3 million.

She said the selling price was 'negotiable', allowing for variations of between 3 per cent and 9 per cent of the price.

'The price difference will be determined mainly by the floors on which the flats are located and the views the occupants enjoy,' she said.

Lehman Brothers property analyst Anthony Wu believed $6,000 per square foot may be too high a target price.

'I wouldn't buy an apartment in Quarry Bay for that price,' he said, adding that buyers could shop around and find similarly priced flats in Mid-Levels.

Terence Tong Ping-ching, sales director of Centaline Property Agency, cited prices clinched on transactions on Monday night. He said a unit on the 30th floor sold at $4,900 per square foot and one on the 20th floor went for $4,500 per square foot.

Swire's Ms Ma said the company last week sold one penthouse of 1,508 square foot for $13 million, and that 'a few' deals for three other penthouses were being negotiated.

Estate agents and analysts said sales at The Orchards would be the latest indicator of market sentiment, especially in the medium-range market.

The market has shown an hour-glass profile over the past two months, with steady sales of flats recorded at the top and lower ends. Middle-income households, the key buying force in the sector, were largely absent from the market.