Far East Consortium International said its latest acquisition of a luxury residential development in Kowloon Tong is part of an expansion into the local market. Managing director Michael O'Young said the company would take advantage of a sharp fall in property prices to beef up its property portfolio especially in the residential sector. The locally listed company, controlled by the family of Deacon Chiu Te-ken, announced its acquisition of a luxury residential project at La Salle Road, Kowloon Tong, for $127.99 million from Chi Cheung Investment last month. Chi Cheung sold the property at a loss as it estimated the development cost at $173 million. The development, comprising four detached luxury houses, will have a gross floor area of approximately 24,920 square feet. Mr O'Young said the company would resell the development when the deal was completed in December. He said detached houses measured about 6,000 sq ft each. He predicted the development should generate an attractive profit margin, because it was bought at a bargain price. The company planned to offload its overseas properties in the United States, Canada and Australia to finance its acquisition move in Hong Kong and on the mainland, he said. He said the company would focus on buying completed residential developments and resell them for profit rather than involving itself in development. In Shanghai, the group is committed to two large residential developments aimed at middle-income households. The projects each comprise 10,000 Malaysian-style detached houses with commercial, recreational, educational and medical facilities.