Sun Hung Kai Properties (SHKP) yesterday announced lower than expected flat prices for the sale of its Scenic View development in Ngau Chi Wan as it battled for buyers with rival developers. A number of residential sales are in the pipeline as developers race to launch new projects to take advantage of improved market sentiment, helped by the Government's new measures to stabilise interest rates. SHKP today will also unveil sales details of Chateau Royale, a luxury development in Tai Po. Cheung Kong (Holdings) is preparing for sales of The Paramount in Tai Po and the remaining units of Maywood Court in its Kingswood Villas in Tin Shui Wai. SHKP said the company would dispose of the first batch of 100 flats at its four-tower Scenic View, near Choi Hung MTR Station, at $3,487 per square foot for cash payment. Analysts predicted SHKP would struggle to break even with prices at those levels. Hong Kong Property Services (Agency) managing director Michael Choi Ngai-min said more developers would take advantage of improved buying sentiment to speed up the sale of their developments this month. Mr Choi said the fresh wave of property sales could result in renewed price competition, but he said a further big correction in prices was unlikely. Analysts said the Scenic View sale would compete with Henderson Land Development's Metro City sale for buyers. Henderson will sell Metro City units at $3,171 per sq ft on Saturday. SHKP sales manager Alfred So Chung-keung said the Government's new measures to stabilise interest rates had improved market sentiment. Sales of the first 100 flats of Scenic View, to be completed in December next year, will take place on September 26. Registration for buyers will run from September 21 to September 23. Mr So said SHKP would profit from the development, although analysts said the $3,487 selling price was below their estimated development cost of about $3,800 per sq ft to $4,000 per sq ft. Profits would be partly generated from the sale of 256 car parking spaces, said Mr So. The 150,000 sq ft Scenic View site, which gives a floor area of 762,000 sq ft, was bought by SHKP for $1.61 billion in 1995. SHKP said it would offer a special interest rate protection plan for buyers. Under the plan, should the prime rate rise to 10 per cent prior to the project's completion, the developer will bear the additional interest costs. SHKP will provide a second mortgage of up to 20 per cent and 14 banks will provide first mortgages of up to 70 per cent for buyers at rates as low as prime plus 0.75 percentage points.