HKR International is considering offering mortgage subsidies to attract investors to its Siena One residential development in Discovery Bay. Managing director Victor Cha Mou-zing said he expected good response to the 298-unit, low-rise project given low interest rates and Discovery Bay's active rental market. HKR will offer second mortgages of up to 25 per cent of Siena One prices, with no interest or repayments needed in the first two years. Mr Cha said he hoped the mortgage rate from the third year would be below prime lending rates, but was still finalising details with banks. Other packages include a HK$238,000 cash award for buyers of garden houses ranging from 2,556 square feet to 2,575 sq ft, and HK$168,000 cash for buyers of low-rise units ranging from 648 sq ft to 2,175 sq ft. Mr Cha said the cash awards could help pay stamp duty. Sale details will be announced on February 19, and Mr Cha expects to sell the units for about HK$4,000 per square foot, making a sell-out worth about HK$1.2 billion. He said the proceeds would be used to buy land in Hong Kong and China. The firm is looking at residential sites in Shanghai and hopes to settle some deals in the next few months.