The renewed residential market slowdown has prompted Sun Hung Kai Properties (SHKP) to price the sale of its Le Sommet development in North Point conservatively, according to analysts.
The first 32 units at the twin-tower development are to be offered at $5,628 per square foot for cash.
Analysts' original forecasts were for more than $6,000 per square foot. The pricing indicated caution over declining buying interest but units sold at such levels could generate a positive response, analysts said.
SHKP investment manager Victor Lui said the pricing was 'attractive' and the company would consider raising prices for remaining units if the response was encouraging.
'Total revenues will reach $3 billion, assuming that all units are sold,' Mr Lui said.
Analysts estimated that the development cost was $4,000 per square foot.
The two towers, due for completion in August next year, will rise 48 and 50 floors and provide 394 units between 765 and 2,026 sq ft.
