Allied Properties (H.K.) will start selling the first 16 units of St George Apartments in Waterloo Road tomorrow at an average price of HK$8,368 per square foot. The 33-storey building comprises 88 units ranging from 1,389 sq ft to 3,368 sq ft, of which 12 are duplex units. A spokesman of Allied Properties said luxury-home sales had increased in the past few months as sentiment improved. The average price of the duplex units was expected to be more than HK$10,000 per sq ft. Allied Properties bought the 26,000 sq ft site for about HK$920 million in 1997. This represented HK$7,077 per sq ft in accommodation value based on a total floor area of 130,000 sq ft. 'The building cost of the development is expected to be over HK$2,000 per sq ft,' said the spokesman. Analysts said the average price of St George Apartments was set above the market price, indicating the confidence of the developer. Midland Realty assistant general manager Jeff Law said buying sentiment had improved slightly with the keen response to new developments released last week. 'However, the market has not fully recovered,' said Mr Law. 'The investors in the luxury market are particularly cautious.' According to Midland Realty, average transacted prices in districts near Waterloo Road would be HK$5,000 to HK$5,500 per sq ft. Response to St George Apartments might not be a true indicator of the luxury market because of the larger room size in the district, one analyst said. Several luxury projects in Ho Man Tin will be completed in the third quarter, including Ellery Terrace, developed by China Overseas Land & Investment, and the King's Park Rise project of Henderson Land Development. A spokesman of China Overseas said Ellery Terrace was expected to receive a certificate of compliance in August. The average price for a duplex would be HK$8,000 to HK$10,000 per sq ft. The 49-storey building comprises 186 residential units, including four duplex and two triplex units, ranging from 1,100 sq ft to 3,500 sq ft. Henderson's development in King's Park Rise is also awaiting a certificate of compliance. The developer said earlier the average price would be HK$10,000 per sq ft.