Phase three Tsing Yi flats sell at discount
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.
