THE luxury Mid-Levels residential tower block Lodge-On-The-Park has been sold for the third time in 14 months, this time to Sun Hung Kai Properties for $406.5 million. On each occasion, the 28-storey building in Kennedy Terrace has been sold by the same man - Mr Raymond Ho, executive director of property consultancy First Pacific Davies. Mr Ho first lined up a buyer for the building in March last year, selling the property to Faser for $320 million. He again acted as middleman when Lodge-On-The-Park was sold in August to Talented Dragon for $377 million, a deal that brought Mr Ho's luxury residential property deals tally to more than $1 billion over six months. The building has generated both escalating rental income and capital values for its fast-changing owners. Finding ready buyers for Lodge-On-The-Park has proved relatively easy because of the shortage of complete buildings of this quality appearing on the sales market. Lodge-On-The-Park has proved popular with buyers of the building and tenants alike, partly because of its views of Victoria Harbour. Rents on luxury residential properties on Hongkong Island have soared over the past year, fuelled by the growing number of expatriate professional workers arriving in the territory wanting accommodation. Monthly rentals at Lodge-On-The-Park have climbed from $20 to more than $25 per square foot since August, making the property an attractive investment both in terms of recurring rental income and capital value. While mass residential property values have cooled since the introduction of controversial 70 per cent maximum mortgage lending guidelines, the luxury sector has continued to climb. It has been largely unaffected by banks' restrictive lending policies because most buyers at this end of the market need not worry so much about finding enough of their own money to put down a deposit. Lodge-On-The-Park currently has eight of its 56 apartments vacant, but when full should generate a reasonable yield of six per cent, consistent with comparable properties in the Mid-Levels area. However, such a property would have fetched an initial yield of 9.5 to 10.5 per cent in late 1990 or early 1991. The fact that so many companies have been attracted to this building despite lower yields illustrates investor confidence that rentals will rise further.