Sun Hung Kai Properties has had slow sales at its low-rise Europa Garden residential project in Sheung Shui because it priced the development out of the market, estate agents say. The company launched the first 20 houses of the 63-house project in Kwu Tung Road earlier this month. The sale price, excluding the garden, was $3,946 per square foot, 7 to 10 per cent higher than other newly completed projects in the area. According to the developer, it sold 11 houses on the first day and none after. No date has been fixed for the official launch of the second batch of houses. Estate agents said the price was higher than expected, which had resulted in sluggish sales. Angus Hui Wai-pong, assistant sales manager of Centaline Property Agency in Fanling and Sheung Shui, said: 'Taking into account the location, which is far away from the Sheung Shui KCR Station, and the price of similar projects achieved in the second-hand market, prospective buyers did not expect such a high selling price.' Mr Hui said some buyers felt the price was not reasonable when compared with the massive Palm Springs development in Yuen Long, another low-rise housing project built by Sun Hung Kai, which sold for $3,000 to $3,300 per sq ft. Located at 83 Kwu Tung Road, Europa Garden consists of 63 three-storey houses of 2,111 sq ft or 2,132 sq ft. Each house has a car park and a garden, which combined range in size from 325 sq ft to 942 sq ft. Wanda Sung Wai-ling, assistant sales manager of Midland Realty's Sheung Shui Centre branch, also said sale prices at Europa Garden were higher than other nearby new projects. K Wah International's low-rise development Casas Domingo, for example, sold for $3,500 per sq ft to $3,600 per sq ft. 'Investors are cautious about the project because short-term profits are not available at this price level,' Ms Sung said. To lure more buyers, Sun Hung Kai is offering a 20-year, 15 per cent second mortgage at two percentage points above the prime rate. Ms Sung expected Sun Hung Kai would provide more preferential payment terms to woo buyers when it decided to launch the second batch of Europa Garden sales. However, she believed the developer would not cut prices at the project, in view of the revival in residential sales prices and the increasing interest of buyers in low-rise developments. FACT FILE Development: Europa Garden, Sheung Shui Developer: Sun Hung Kai Properties Total flats: 63 Size: 2,111 or 2,132 sq ft Average price: $3,946 per sq ft for the first 20 units Facilities: clubhouse Payment schemes: Initial deposit $$300,000. Lump sum payment: 20 per cent down in five days, balance within one month of signing agreement. Second mortgage: developer will provide top-up mortgage of 15 per cent with 20-year maturity.