An increasing number of Hong Kong residents working in Beijing has created a new market for mainland developers seeking an expanded source of demand. One company eyeing this market is the private developer Beijing Konwa Real Estate Development. This weekend, it launched a high-end residential project, UHN International Village, in its first exhibition in Hong Kong. The developer is selling units ranging in size from 620 square feet to 1,950 sqft in the second phase of the development at an average price of 770 yuan (HK$723.8) per square foot. 'The project has reaped a good response and the first 12 flats were sold out in the two-day exhibition,' said a spokesperson for marketing agent Midland Realty. The developer is offering buyers another 20 units at the same average prices, according to Midland. UHN International Village, comprising 10 blocks of 1,700 apartments, is being built in three phases on a 3.4 million sqft site at East Third Ring Road. Unit sizes range from 538 sqft to 3,400 sqft. 'We are targeting Hong Kong residents who have business activities in Beijing,' said general manager Liu Yao. He believed the development would be attractive as it could provide investment yields of 8 per cent to 10 per cent annually. This compared with investment yields for Hong Kong luxury flats of about 4 per cent to 5 per cent annually. Winnie Yip, general manager of Debenham Tie Leung (Beijing), said that, judging by the returns, Beijing properties were 'very attractive when compared with Hong Kong'. She said the outlook for Beijing's home market was promising as strong demand was sustainable in light of the city's 13 million population and a growing number of expatriates. Ms Yip said Hong Kong residents usually bought Beijing apartments mainly for their own use if they needed to travel to the city frequently. However, the number of pure investors was growing, she said. Despite the promising outlook, Ms Yip said investors should bear in mind that making a quick profit in the Beijing property sector was not easy. She suggested investors take a long-term investment approach - perhaps five years - before seeing a good capital return. 'But if you want to make a quick return from property investment, forget about the Beijing market. Resale is very difficult at the moment,' she said. The secondary market remained small in Beijing even though it was growing at a fast pace, she said. There were less than 9,000 transactions in the secondary market last year. However second-hand flat transactions surged to about 30,000 in the first half of this year, according to Ms Yip. Still, it was a small number, she said. Furthermore, Ms Yip said the market would see huge supply in 2005 to 2006 as developers had been unofficially advised to complete their projects a to two years before the Beijing Olympic Games in 2008, in order to minimise pollution in the city. She also suggested that buyers pay close attention to unfinished properties and ensure that developers were able to achieve what they had promised in the marketing material.