The 1980s saw Baguio's profile rise further as the development became the preferred area for diplomats and government executives. Along with the increasing influx of foreigners, however, came an unsavoury reputation for being a 'hot spot' for wayward expatriate teenagers and rumours of drug abuse were rife.

Tragedy struck Baguio Villa in 1992 when two people died after heavy rain caused a retaining wall and part of a fill platform to fall. Sustained landslides forced the evacuation of a number of residents and questions were raised about the safety of the slopes.

Indeed, Baguio has had its share of accidents - nine workers were trapped by collapsed scaffolding in 1999 and had to be rescued by firefighters. Building work has been a feature of Baguio Villa for much of the past decade, with internal road closures and scaffolding often inconveniencing residents.

Those works appear to have stopped - only to be replaced by a much worse proposition. The new Cyber-Port development in Telegraph Bay is scheduled to finish in 2007 and construction has also begun on a new highway. Both projects appear to be unpopular with local residents, who also complain about the endless construction work along Pokfulam and Victoria Roads.

Afia Hussain, a long-time resident of Baguio Villa who works as a project manager at a financial printers, voiced her concerns about the lack of consultation regarding the construction work.

'We were never consulted,' said Ms Hussain, who has lived at Baguio for more than 20 years.

'Now, there is too much drilling during the day.'

The net effect of the new projects has been to play havoc with Baguio's image as a green retreat. Simon Chan, area manager for Pokfulam for Ricacorp Properties, believes prospective residents are being scared away.

'The old days were quiet and peaceful. Now the construction work has changed things.'

The statistics appear to back him up. Only three sale transactions were recorded last month. Before 1997, a typical month would see 30. Mr Chan believes the volume has dropped by more than 50 per cent since the handover.

Roadworks have distorted travel times. A typical journey from Baguio to Pokfulam Road, which should take two minutes, now takes 10, thanks to the renovation of Sassoon Road. Completion dates continue to be put back and the digging up of both Victoria and Pokfulam Roads has exacerbated the situation.

It is not just outside work that is being blamed for the lack of interest in Baguio. Residents also appear concerned about the upkeep of both the buildings and the facilities.

Unlike most developments in Pokfulam, Baguio Villa is comprised solely of high-rises. It boasts swimming pools and tennis courts, but Ms Hussain was blunt in her assessment of these.

'The tennis court needs renovation and the swimming pool needs much better maintenance,' she said.

Also under fire is the management committee.

'The management need to communicate better with residents. They are very rude and inefficient.'

For the record, prices in Baguio Villa are certainly attractive. A 1,600 square foot, three-bedroom apartment with a parking space is on the market for HK$5.4 million. Also reasonable is a two-bedroom, 1,000 sq ft space, which would cost HK$3.1 million.

Rentals are also moderate. A top floor 2,400 sq ft apartment with four bedrooms is available for lease at HK$32,000 a month. Or HK$19,000 a month will land a 1,000 sq ft flat with two bedrooms.

Facilities do not compare with newer high-rise developments, but there is a ParknShop and a video rental shop - Movieland.

Transportation links are adequate. In response to numerous complaints there are now two regular minibus services to Causeway Bay and Central and the nearby Western Harbour Tunnel puts Kowloon and the airport within easy reach.

Baguio is certainly well situated, with both Central and the south-side's pleasure spots nearby. A number of schools are nearby as is Queen Mary Hospital.

There is little in the way of restaurants or bars, so residents have to travel either to Chi Fu Fa Yuen or Central to eat out.

For all its drawbacks, the view from Baguio Villa can still be stunning - if you ignore the construction work at Telegraph Bay.

Many flats boast views that take in both Lamma and Lantau, and the Lamma channel is a particular favourite for ship-watchers.

Glorious sunsets are still the norm.

Next week: Gold Coast

Graphic: pro04gwz