Luxury project stands out
Central Residences, Kerry Properties' first foray in the Fuzhou residential market, is a rare case of a foreign developer in a market dominated by local developers.
The two residential towers contain 248 units, ranging from 119 square metres to 163 square metres, and the average price is about 4,200 yuan per square metre.
Hong Kong buyers featured strongly. About 20 per cent of the 183 units sold were bought by Fuzhou people living in Hong Kong, while another 15 per cent were bought by Fuzhou people in the United States.
Fanny Leung, a marketing director of Kerry Properties, said Hong Kong developers could enter the market only by building luxury residential projects. 'You can never compete on building cost with mainland developers; the only way we can stand out in the local market is to build higher-quality buildings,' Ms Leung said.
She said the average rental yield on apartments ranged from 8 per cent to 12 per cent, depending on size.
A furnished four-room apartment bought for about one million yuan could be leased for a monthly rent of up to 10,000 yuan.
However, mainland property agents said the rental market in Fuzhou was immature, with under-developed legal protection for landlords.