China Resources Enterprise, Cheung Kong (Holdings) and Sun Hung Kai Properties (SHKP) are selling the first 36 flats of Villa Esplanada phase three in Tsing Yi below market prices - at HK$3,347 per square foot for cash payment. Analysts said the average price was 15 per cent lower than secondary market values. China Resources executive director Lau Pak-shing said the price was discounted so as to attract more end-users. He said more flats would be released but the three developers had not decided whether to raise the price. Phase three of Villa Esplanada comprises 1,200 units. Mr Lau said a sell-out of 1,200 units would generate proceeds of HK$3.6 billion. Phases one and two of Villa Esplanada were released in 1997 and 1999, respectively. The highest average price per square foot for phase one was HK$9,800 while the average price for phase two was HK$4,000 per square foot, Mr Lau said. SHKP vice-chairman and managing director Raymond Kwok Ping-luen said the company continued to adopt a policy of selling flats at high volume and low margins. The general manager of the sales department at Sun Hung Kai Real Estate Agency, Eric Chow Kwok-yin, said phase three of Villa Esplanada had received nearly 1,000 pre-registrations. Director of Centaline Property Agency Chan Wing-kit said the second-hand transacted price of phases one and two of Villa Esplanada were HK$3,800 to HK$4,000 per square foot and the average price of Tierra Verde was HK$4,500 per square foot. Official sale of Villa Esplanada will be on July 8.