Caribbean Coast launch below cost price
Cheung Kong (Holdings) will release the first 24 flats at its Caribbean Coast development in Tung Chung for sale at an average price of HK$2,140.5 per square foot.
It is the second developer to launch sales since this week's interest rate cut.
Analysts said the developers, Cheung Kong and associate Hutchison Whampoa, were probably selling the units for less than they cost to build.
Cheung Kong and Hutchison secured the project from the Mass Transit Railway Corp in early 1997 for a land premium of HK$4.15 billion, representing an accommodation value of HK$1,257 per square foot.
Cheung Kong executive director Justin Chiu Kwok-hung said the first batch of units was too small a sample to judge whether the project as a whole would lose money.
The first 24 units, on the fifth, sixth and 10th floors of Tower 2 and Tower 3, will be sold on October 28, with registration scheduled for October 24 to 26.
Mr Chiu said the first batch was a sample of 'low-end' units in the project which contains more than 5,000. He said the developers would raise HK$1.81 billion if all 700-plus units at Tower 2 and Tower 3 sold.
