Property developers Henderson Land Development and Sino Group have decided to release residential projects for pre-sale in Tseung Kwan O and Ma On Shan at discounts of between 10 and 20 per cent, along with a range of other benefits for buyers. Henderson Land will launch an initial batch of 218 units at La Cite Noble, Tseung Kwan O, at an average price of $4,028 per square foot for cash payment, while Sino will offer 108 units at its Villa Oceania, Ma On Shan, at $4,938 per square foot. Estate agents said the two projects were priced 10-20 per cent below secondary market prices. In a bid to boost sales, Henderson Land will also offer a three-year mortgage subsidy to flat-buyers. Henderson Land general manager for sales Donald Cheung Ping-keung said the company had arranged eight banks to provide mortgages at a fixed rate of 10 per cent per annum for the first three years. 'We will pay the difference between the floating rate and the fixed rate to the banks, currently about two percentage points,' he said. For instance, the buyer of a $3 million unit would save up to $126,000 on interest payments over the three-year period if rates stayed at the present 12 per cent level. Before October's currency crisis, average home mortgage rates were prime plus 25 basis points, or about 9 per cent. 'Flat-buyers have to stick to the fixed-rate plan for three years once they choose this scheme,' Mr Cheung said. He said a penalty would be charged for early termination of the plan. Other sweeteners for La Cite Noble buyers include a second mortgage of up to 20 per cent on top of the banks' 70 per cent mortgage, a decoration cash coupon of up to $80,000 and the waiving of legal fees. Hong Kong Property Services (Agency) Tseung Kwan O branch manager Yu Wai-nan expected home buyers to be more interested in price discounts than other preferential offers. Registration for La Cite Noble will run from April 2-4 and the units will go on official sale on April 10. The first phase comprises 1,088 units with sizes measuring 525 sq ft to 606 sq ft. Meanwhile, Sino Land executive director Robert Lee said the two projects would not be in direct competition as they were targeted at different markets. Villa Oceania - a 50-50 joint venture between Sino Land and Sino Group - was aimed at buyers who wanted to upgrade their living environments, while Henderson's project was focused mainly on first-time buyers, he said. Units at Villa Oceania measure 665 sq ft to 1,427 sq ft. Mr Lee estimated the group would realise about $3.5 billion if all 551 units sold. He expected the property market to stabilise now that interest rates were falling.