A new price war has erupted between property developers keen to offload projects, with prices being cut by as much as 35 per cent. Lai Sun Development is to release 20 houses at its jointly owned Tycoon Place development in Tai Po for between $10 million and $14 million each. Based on the gross floor area, excluding the garage, the price is $4,056 per square foot, or 35.2 per cent, below the original price of $6,255 per square foot announced in May. Sun Hung Kai Properties (SHKP) is understood to have sold yesterday about 30 houses at its Chateau Royale development, also in Tai Po, at a price far below the company's planned asking price of $5,000 to $6,000 per square foot. Agents said the houses were sold at $3,600 to $4,200 per square foot. The figures were not confirmed by SHKP. Nan Fung Development announced a price cut of 15 to 22 per cent from $3,743 per square foot to $2,998, for 200 units at Nan Fung Plaza, in Tseung Kwan O. Nan Fung Plaza's new price undercut the $3,171 per square foot price of Henderson Land Development's Metro City II units, the sale of which has been postponed from Saturday to next Wednesday. Developers appear to be desperate to dump flats at discount prices, or even at below development cost, despite Government measures to stabilise the stock and currency markets. On Wednesday, China Overseas Land and Investment trimmed prices at Dragon View in Ho Man Tin to $4,705 per sq ft, down 16 per cent from the July price. Lai Sun director Julius Lau Shu-yan yesterday said the reduction in prices of Tycoon Place would result in the development making a loss as total costs of the project were about $6,000 per square foot. He rejected suggestions the price-cut was forced by keen competition among other developers launching their projects in the district. Cheung Kong (Holdings) is set to launch 123 apartments at its low-density development, The Paramount in Tai Po. Details will be announced next week. Mr Lau said the reduction in Tycoon Place prices would not trigger a price war, as there would not be a further price cut at the project. Mr Lau said the revised price of Tycoon Place was about 15 per cent below secondary market prices.