Investment potential gives Residence Bel-Air the edge

PCCW INFRASTRUCTURE'S Residence Bel-Air project is the first large-scale housing project in Pokfulam since Baguio Villa almost 30 years ago.

The release of the luxury Bel-Air units at an average of HK$5,500 per square foot is expected to have little impact on Baguio Villa, which is selling for about HK$3,200 per square foot.

However, it does put pressure on The Belcher's (Sun Hung Kai Properties) - a project with six blocks of 800 to 1,800 sq ft units also in Pokfulam - to lower prices from more than HK$4,000 per square foot to HK$3,600, agents say.

'Nevertheless, The Belcher's is much smaller in scale and is not positioned as a high-end luxury property like Bel-Air,' Gary Yeung, agent at Midland Realty's branch for the Peak and South Island, said.

Real-estate agents are promoting Residence Bel-Air as a good investment in a sluggish property market because it could yield a return of as much as 7 per cent from rent of at least HK$25 per square foot. Units will be available for occupation in September next year.

Cathy Chiu, branch manager for Ricacorp Properties' Baguio Villa, said: 'Take, for example, a 1,322 sq ft flat with three bedrooms. If purchased at HK$4,100 per square foot, the monthly mortgage is around HK$20,479, with an interest of 2.5 percentage points below the prime rate. The rent is expected to stand firm at HK$25 per square foot, meaning the flat can be rented at over HK$33,000 a month.'