Developer Paladin plans to raise the price of its Peak property project by 5 to 15 per cent to ride the booming luxury residential market.
The company said it had cashed in about $540 million from the sale of 11 of the 34 units at its 8 Peak Road project. The average price for those units was $17,000 to $22,000 per square foot.
The developer plans to sell two to four more units at 5 to 15 per cent above that price range in the near future in an attempt to reap an additional $200 million to $250 million.
It plans to lease the rest of the flats at about $50 to $60 per square foot as its long-term investment.
'We expect luxury residential projects will continue to outperform the rest of the property market due to relatively short supply in the segment,' said Claudius Grossmann, an adviser to Paladin.
Mr Grossmann said he expected prices to climb 15 to 20 per cent this year and rentals to increase 10 to 15 per cent.