Hong Kong Resort, a HKR International and Citic Pacific joint venture, hopes to settle the land premium soon on its Yi Pak development in Discovery Bay after concluding a deal on an adjacent site. The company has agreed to pay a $220 million land premium for its 269,100 square foot phases nine and 10 in Discovery Bay. The settlement represents $817 per square foot which analysts said was an 'attractive price'. HKR managing director Payson Cha Mou-sing said the premium amount was acceptable and the timing was appropriate. 'After a long and rather painful period of consolidation, the property market has stabilised,' he said. ' We might be able to see property prices on a steady upward trend in the future.' Mr Cha said the company hoped that land premium discussions on the 2.46 million sq ft Yi Pak development would be concluded soon. 'As we have to bear the infrastructure cost like road network and site formation in Discovery Bay, we will put forward this consideration to the Government during our discussion so as to arrive at a reasonable land premium for both parties,' Mr Cha added yesterday. Lehman Brothers Asia vice-president Michael Leary said the premium for phases nine and 10 was lower than his expectation which would increase profit margins. He expected the gross development cost of the project to be about $2,500 per square foot compared with transacted prices of $3,500 per square foot in Discovery Bay. The settlement would likely accelerate agreement among other developers on land premiums for new developments, he said. HKR said the additional 269,100 sq ft, together with the existing 86,230 sq ft on which premium had already been paid, would be developed into phase nine and 10 in Discovery Bay. Phase nine will provide 181 low-rise and mid-rise units while phase 10 comprises 219 units in two high-rise buildings.