Estate agents expect the sale of Cessington Limited's new office building in Tsim Sha Tsui to receive a slow response because the selling prices are above secondary market rates. HKR International subsidiary Hanison Management, the project's manager, is marketing 11 floors of the 28-storey building at 8 Hart Avenue at an average price of $5,800 per square foot. The floors comprise 66 units of 656 to 823 sq ft, or a whole floor area of 4,322 sq ft. David Tai, director of Hanison Management, said the 108,050 sq ft project had sold six units before the official launch at between $5,000 and $6,500 per sq ft. The secondary market's office price in the area ranged from $5,000 to $9,000 per sq ft, depending on the age and quality of the buildings, he said. Estate agents said the building at 8 Hart Avenue was the only new office block in the area to go on sale in the past two years, but one needed to pass through narrow streets to reach the building. One agent said recent transacted prices of office space at nearby buildings such as Express Plaza were about $5,000 per sq ft. Buyers looking for office premises in Tsim Sha Tsui were now more interested in lower-priced properties. Mr Tai said the owner could generate a sales revenue of more than $200 million if the 11 floors sold out. The owner had yet to decide whether to sell the remaining floors or keep them for lease, he said. Buyers taking up a large portion of the building will probably be given the naming right of the building. The building comprises 25 office floors on top of 13,341 sq ft retail spaces on the lower floors designated for shops and restaurant operations. Cheng Kai-biu, senior district sales manager of Centaline Property Agency's Tsim Sha Tsui branch, said office properties in the area reported mixed price movements this year. Prices for top-floor offices with sea views in Wing On Plaza reached $10,000 per sq ft but prices for an individual unit in Harbour Crystal Centre were as low as $3,550 per sq ft, he said. He said the market was still in a consolidation period but he expected prices could possibly start picking up early next year. Agents said the office leasing market was more active compared with the strata-title sales market as buyers and investors were still uncertain about the market's outlook. They said companies looking for quality offices could prefer the large-scale Concordia Plaza in Tsim Sha Tsui East, which was selling at about $7,000 per sq ft. Cessington is trying to boost the sale of the building with the provision of preferential payment terms. The company allows the buyers to pay 15 per cent of the property price in instalments within 15 months. But buyers using this scheme need to pay a 12 per cent premium in price. Five banks are committed to providing up to 70 per cent mortgage loans for the project and two of them offer a mortgage rate as low as 9.25 per cent. FACT FILE Development: 8 Hart Avenue, Tsim Sha Tsui Developer: Cessington Limited Floors for sale: 11 Size of units: 656-823 sq ft (subdivided); 4,322 sq ft (whole floor) Average price: $5,800 per sq ft Number of office floors: 25 Expected completion date: December Project manager: Hanison Management Company Facilities: Retail spaces on ground and first floors, and parking in basement Payment schemes: Initial deposit $200,000; Staggered payment: 10 per cent down, balance upon occupation; Instalment scheme: 15 per cent down, 15 per cent payable in instalments within 15 months, balance due after 15 months.