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Sandy Li

The Leighton Hill luxury development's prime location and its use of top-quality materials have attracted cash-rich upgraders and investors.

The market was surprised by the enthusiastic response, with Sun Hung Kai Properties (SHKP) generating HK$7 billion from the sale of about 450 units, or 80 per cent of the Happy Valley project, within weeks.

But analysts said the positive response might be limited to this project and the market could return to the doldrums afterwards.

SHKP has stopped private sales until the official sale of 58 units on Saturday.

The strong response prompted the developer to release all 544 units for sale. It initially planned to keep half the project for long-term leasing investment.

Agents attributed the success not only to the project's prime location, but also SHKP's marketing strategy.

Ricacorp Properties managing director Barry Law Lam-wei said the development had become the market focus since SHKP announced the opening of a HK$50 million show flat for public viewing last week.

The developer also released the first 20 units at an average of HK$6,797 per square foot - below the development cost - for cash payments.

Prices for units on offer range between HK$7.14 million and HK$17.25 million.

SHKP earlier said the building materials used at the project would be more expensive than those in its other luxury development, 3 Repulse Bay.

Special marble from Egypt, and France will be used for the first time on the lift-lobby floor and walls. Bathrooms will have quality fixtures and accessories and kitchens will be equipped with French cabinets.

The development, dubbed by SHKP as a 'third-generation' luxury property, also offers residents access to the Internet throughout the units.

'That is the way to make people fall in love with the property,' Mr Law said.

All units will have a 180-degree view of the racecourse, and those above the 20th floor look out over Victoria Harbour.

Buyers might avoid upper-floor units overlooking the nearby cemeteries, he said, but this had not seemed to dampen buying interest.

A deluxe clubhouse and landscaped garden occupy more than 100,000 sq ft. The Club Leighton, with a grand ballroom and outdoor courtyard, will allow residents to hold stylish garden parties.

Such large-scale recreational facilities were not available in the area, Mr Law said.

Victor Lui, executive director of SHKP's marketing arm Sun Hung Kai Real Estate Agency, said upper-floor units achieved HK$9,000 per sq ft to HK$13,000 per sq ft.

He said the project would attract upgraders from the district as most units in Happy Valley were more than 10 years old.

Mr Law said the development had not only drawn buyers from Happy Valley, but also from Kowloon and the New Territories.

He believed the sales response could serve as a market indicator for the luxury residential sector, given that hundreds of units were sold.

The strong sales indicated buyer confidence had returned to the luxury sector, and the mass residential market might also follow suit.

Mr Law believed about 70 per cent of the buyers were end-users.

To lure buyers, up to 10 banks provided mortgages as low as 2.25 percentage points below the prime lending rate.



Leighton Hill proves the top-end pacesetter