A CUT-PRICE offer on flats by two property giants met with a lukewarm response from homebuyers yesterday, who seemed confident that prices would fall even further. In an attempt to boost sales of flats at the Royal Peninsula development in Hunghom, Sun Hung Kai Properties (SHKP) and Henderson Land Development slashed prices by a loss-making 14 per cent. The average price of the 68 units on sale was $3,898 per square foot, with the lowest price set at $2 million for a 481-square-feet unit, and the highest price unit set at $5.8 million for 1,366 square feet. The cost of the development is, however, estimated to be more than $5,000 per square foot. Mortgage sellers and estate dealers almost outnumbered potential buyers at the Central sales office in the International Finance Centre yesterday morning. A number of advantages were introduced to lure potential buyers, including free stamp duty, home mortgage interest rates as low as 7.25 per cent and subsidies on legal fees. The developers even offered a mortgage subsidy so buyers would only have to pay a 10 per cent deposit instead of the usual 30 per cent. But the inducements failed to tempt and by last night only about 10 of the 68 units had been snapped up. Most people turned up just to 'take a look'. One prospective buyer, William Chan, said he would not buy a flat in the near future because he expected property prices to fall even further. 'There are so many flats built every year. I can't see any reason that the market will soar.' He said he turned up yesterday because he wanted to look at the interiors of the flats. After visiting the sales office with his wife and daughter, Paul Lee admitted the prices were very reasonable. 'However, there are now many choices out there. I think it would be better to search more before buying a flat. 'It is not like the good old days when if you saw a unit you wanted, you just grabbed it as fast as you could.' Property Agent Stanley Cheng from Fortune Realty Company said the response to the price cuts was discouraging. 'Compared to the prices of units in sites sold previously, there is a 20 per cent discount, but there are still not many people interested. 'I think it is because people expect the prices to go down further. The price cut has further eroded people's confidence in buying a unit,' Mr Cheng said. But Rocky Wong Chun-wai, senior regional (Hunghom and To Kwa Wan) sales manager of Centaline Property Agency described the sales as 'okay'. 'Considering the present property situation, it is already a very good result,' he said. Steve Chik Shing-chi, Midland Realty Hunghom district manager agreed. 'I believe many people will come to buy the flats tomorrow as many of them visiting the sales office today have indicated they were very interested.' He said most of the people were buying flats to live in rather than for speculation.