90 per cent of One South Lane first-batch units sold to investors

Nearly nine out of 10 flats at a small development in Kennedy Town were sold to investors yesterday, an industry observer said - their appetite whetted by rents hitting a record high in July.

In just three hours, Chinese Estates Holdings sold the entire first batch of 40 flats, with sizes ranging from 210 to 268 sq ft, at One South Lane after sales kicked off at 10am.

The single block, due to be completed in April 2016, comprises 92 units.

"About 80 to 90 per cent of buyers were investors. There were at least four buyers who bought two units," said Sammy Po, the chief executive of Midland Realty's residential department.

Po said the units could rent for HK$80 per square foot a month.

On Friday, the Rating and Valuation Department released its monthly rental index for private homes for July, showing it climbed to a record 157.7, eclipsing the previous record of 157.2 set in November last year.

Listed prices for One South Lane were HK$5.31 million to HK$7.51 million, or HK$25,314 to HK$27,877 per square foot.

Buyers will receive an 8 per cent discount for cash payment, up to HK$100,000 worth of furniture and a 7 per cent discount to offset double stamp duty.

Factoring in a total discount of up to 18 per cent - including furniture - the cheapest unit will cost HK$4.31 million.

Meanwhile, agents said Wheelock Properties sold 21 of the first batch of 30 flats at its luxury project Kensington Hill in Sai Ying Pun yesterday, raising HK$300 million for the developer. The project has 75 flats.

The flats, with sizes ranging from 569 to 865 sq ft, are being offered at HK$11.7 million to HK$23.5 million each, or HK$20,550 to HK$27,212 per square foot.

After taking into account a discount of up to 15.25 per cent, the average price is HK$19,828 per square foot.

"Three to four of our clients bought more than two units at Kensington Hill," said Louis Chan Wing-kit, the managing director of Centaline's residential department.

Po said about 70 per cent of buyers at Kensington Hill were end users, with the rest investors.

"Investors focused on buying two-bedroom flats," he said.