Kerry offers luxury Shanghai flats to HK buyers

PUBLISHED : Wednesday, 19 August, 2009, 12:00am
UPDATED : Wednesday, 19 August, 2009, 12:00am

Kerry Properties is to release a block at phase two of its Central Residences luxury project in Shanghai's high-end residential district, at more than 80,000 yuan (HK$90,704) per square metre to Hong Kong buyers this week.

Chu Ip-pui, an executive director of Kerry Real Estate Agency, said 10 units in the completed block 2 at Hua Shan Road were sold to buyers at between 81,000 and 87,000 yuan per square metre when it was launched in Shanghai on Friday last week.

'We now plan to offer five units in Hong Kong later this week,' Mr Chu said.

The units at block two on offer in Hong Kong are between the 17th and 20th floors of the residential block, which is one of three blocks in the development and comprises 60 four-bedroom units ranging in size from 230 to 240 sq metres. The block also has two simplex apartments each measuring 500 sqmetres.

Mr Chu expects the firm to generate revenues of about 1.5 billion yuan if all 60 units in the block were sold considering each unit may cost up to 20 million yuan.

The developer has lined up banks in Hong Kong to provide mortgage loans in Hong Kong dollars and buyers may borrow up to 70 per cent of a flat's value at a fixed exchange rate to the yuan.

Units in Blocks 1 and 3 which Kerry planned to hold for leasing are currently rented at between 170 and 200 yuan per square metre per month, providing an annual investment yield of 2.5 per cent.

Mr Chu said he was upbeat about the outlook for the mainland property market and confident that the mainland government would not introduce tough measures to dampen the real estate industry.

Early this month, the central government reaffirmed its decision to maintain its 'appropriately loose' monetary policy stance and expansionary fiscal policy, and while some mainland banks had tightened their mortgage lending to buyers of second homes this had had little impact on the luxury housing sector, he said.

Mr Chu cited as an example progress with sales of its 71 per cent owned luxury residential Gemini Grove project in Beijing where about 60 per cent of buyers had chosen cash payments.

Kerry Properties had sold 200 of the 317 units in Gemini Grove at an average price of 40,000 yuan per square metre, he said.

A number of units achieved prices as high as 60,000 yuan per square metre.

The company has generated 700 million yuan from sales at Gemini Grove so far.

Kerry Properties is part of the Kerry Group, the largest shareholder in the SCMP Group, publisher of the South China Morning Post.