SHKP lowers asking price for luxury units

Sun Hung Kai Properties' release yesterday of the first batch of 50 flats at its luxury Riva residential project in Yuen Long underscored the weakening property market.

At HK$12,268 per square foot, the average price at Riva is about 18 per cent lower than the original asking prices. SHKP previously said its target price tag for flats at Riva was HK$15,000 per square foot on a gross floor area basis.

The release came a day after Sino Land pitched its joint venture Park Ivy project in Tai Kok Tsui at an average price of HK$16,055 per sq ft, a figure in line with the secondary transactions in the area.

Riva's average price is still higher than HK$7,000 to HK$10,016 per sq ft transaction prices at a nearby three-year-old project, Yoho Town, also built by SHKP.

"It is a reasonable price as it is a new project. Undoubtedly, developers have to offer new projects at competitive prices to entice sales," Centaline Property Agency managing director Louis Chan said.

"Sales in the secondary market have dropped to below the Sars level of 2003 and home prices are bound to head for a correction … It would not be surprising to see developers launching new projects at below secondary market prices to compete for buyers."

The first Riva batch includes special flats and houses.