Encouraged by the government's property rescue package, HKR International has decided against launching its Coastal Skyline project in Tung Chung in large batches and at a discount. HKR and its Singapore partners have decided to slow the pace of sales and release only one block of the project to test the response, marketing general manager Chan Chi-ming said. The company had originally planned to release two or three blocks of Coastal Skyline at the launch. Mr Chan said the company also would launch the project at prices about 5 per cent above its original target. He declined to disclose a target price, while the sales schedule and other details have yet to be decided. 'At the beginning, we had plans to sell at lower prices. Given the positive news of the government measures, we considered adjusting the price upwards by about 5 per cent,' Mr Chan said. The first phase of Coastal Skyline comprises 2,022 units in five blocks, which recently received occupation permits. Standard units range from 500 to 1,200 square feet; combined and duplex units are 1,700 sq ft and larger. Mr Chan said show flats would be open to the public next month and the final sales schedule would depend on the response of the market. 'It may take some time for the market to digest the government's stimulus measures. We will be flexible in our sales programme,' he said, adding developers would not flood the market with aggressive launches. Mr Chan said the residential market had been distorted in recent years by dominant end-users. Few investors were active in the secondary sector, and the upgraders' market was depleted, he said. This did not bode well for healthy market development. He hoped that the government package had laid a foundation for recovery and a return to healthy growth. Mr Chan said the suspension of government land sales until the end of next year would have no impact on HKR, which already had sufficient land to meet its development needs in the future. The group still had about 900,000 sq ft in gross floor area to be developed in phase two of Coastal Skyline, with another 1 million sq ft planned for its Discovery Bay extension on Lantau, he said. More than one million additional square feet of developable space in Discovery Bay was under negotiation with the government.