Strong luxury sales at Swire's Arezzo may signal wider property upturn

Strong sales at a Swire Properties' luxury residential project in Mid-Levels West yesterday provided further evidence of a revival in investor interest in big-ticket purchases, agents said.

Swire said last night all 50 units had been sold, resulting in sales revenue of HK$1.23 billion.

Louis Chan Wing-kit, the managing director of Centaline's residential department, said "about seven or eight potential buyers" had said they planned to buy two units for long-term investment. "It is a positive sign as such transactions will involve more than HK$40 million," he said.

Chan said 60 per cent of buyers were investors who bought the flats to rent out.

"The market has been dominated by the sale of small flats ranging in size from 200 to 300 sq ft each," he said. "The strong response at Swire's project shows signs of an upturn in the wider property market."

Chan said Swire's discount strategy had proved effective in attracting buyers.

The developer launched the first 50 units at Arezzo, 33 Seymour Road, at an average price of HK$27,159 per square foot, about 17 per cent lower than the HK$32,837 per square foot set by Argenta at 63 Seymour Road when it was launched in September last year.

Units, ranging is size from 911 sq ft to 976 sq ft, were priced at between HK$24,457 and HK$30,307 per square foot - or from HK$22.28 million to HK$29.58 million. Swire said it would pull in revenue of HK$1.28 billion if all the first batch units were sold.

Sammy Po, chief executive of Midland Realty's residential department, said Arezzo buyers handled by the firm were equally split between investors and end-users.

To capitalise on the positive sentiment, developers are gearing up to market more than 3,000 units in new projects in coming months.

Real estate fund Phoenix Property Investors will release 15 units at its 67-unit, 3 Julia Avenue project in Ho Man Tin tomorrow, with Cheung Kong to release 12 units at Mont Vert in Tai Po on the same day.