Villa Premiere units well priced to attract buyers

Sun Hung Kai Properties (SHKP) is to launch sales of its residential project Villa Premiere in Yuen Long on Saturday, a move that will test the sentiment of the fragile housing market.

The launch of the major primary project follows successful sales of Sino Group's Regentville project in Fanling.

SHKP last week announced it would sell the first batch of 16 units at its 320-unit Villa Premiere at an average price of $2,543 per square foot for cash.

Buyers using deferred payments or top-up mortgage schemes will have to pay a premium of 10 per cent on the list price.

Centaline Property Agency assistant sales manager Chris Chow Tze-lap said the project would be well received by home buyers because prices were reasonable.

The initial response to the project had been favourable, with 64 units being sold through internal sale on September 19.

Agents said the average asking price for the units was 17 per cent to 20 per cent below average prices in the secondary market, which ranged from $3,100 per sq ft to $3,250 per sq ft.

Buyers were required to pay a total cost, including interest expenses, of about $2,800 per sq ft before they could move in, they said.

Given that, the price was still below that of the secondary market, the agents said.

Villa Premiere, scheduled for completion in September next year, comprises 320 units ranging from 670 sq ft to 897 sq ft. It also has 184 car-parking spaces.

Mr Chow said buyers would be attracted by the project's quality and the relatively high efficiency of the units, which stood at 80 per cent.

Also, there had been a lack of new supply in Yuen Long for some time.

For that reason, the project would also attract existing residents in the district who wanted to upgrade their living environments, Mr Chow said.

Registration for buyers at Villa Premiere is scheduled to close tomorrow.

Analysts said a positive sale result from Villa Premiere might help the market to find bottom sooner, even though the more crucial factor would be the outlook for Hong Kong's economy.

They said the fragile market needed more evidence that the economy had stabilised.

Home prices had fallen 5 per cent in the past three months in the absence of positive news.

Last Tuesday, Henderson Land Development also announced it was to offer 28 units at its Parkland Villas in Tuen Mun at an average price of $2,348 per sq ft.

WINDOW ON NEW PROJECTS FACT FILE Development: Villa Premiere, a four-tower residential development in Yuen Long Developer: Sun Hung Kai Properties First batch of units on sale: 16 Size range: 670 sq ft to 897 sq ft Average price: $2,543 per sq ft Official sale: September 25 Total units in development: 320 Completion: scheduled for September 2000 Design efficiency: 80 per cent of space usable Second mortgage from developer: up to 15 per cent with repayment periods of up to 20 years