Large-scale foreign investment in the residential market has shown signs of a revival after a Taiwan company bought 10 luxury residential homes in Stanley for $360 million. Donald Fan Tung, a director of Regal Hotels International Holdings, said Taiwan-based Trident's Group bought 10 houses at its 70 per cent-held Regalia Bay development for an average $8,606 per square foot last week. Regalia Bay includes 139 houses of 4,000 to 5,000 square feet. Regal's partner in the development is China Overseas Land & Investment. 'We negotiated with the buyer for about a month and the deal was finally made last Saturday,' Mr Fan said. He said the Taiwanese group bought the properties for their potential rental income. To date, 22 houses in Regalia Bay have been sold. 'There was another foreign investor who wanted to purchase the whole development, but we turned down the offer as the price was not right,' Mr Fan said. He also said the consortium would reserve the development's second phase for rental income. First Pacific Davies associate director Frank Marriott said large-scale foreign investment in the residential market, characterised by transactions involving more than $100 million, had not been seen in Hong Kong since 2001. 'Foreign investors are attracted by Hong Kong's transparent property market, which is very liquid,' he said. 'And the price of Hong Kong top-end properties has gone down to early 1990s levels.' Mr Marriott believes the level of foreign investment is unlikely to approach its peak of three years ago, as rental yields are not rising in tandem with prices. He said large-scale foreign investors generally viewed rental yield as more important than capital appreciation. Jones Lang LaSalle managing director Fung Kin-keung said some investment funds from Europe and the United States had recently been eyeing high-end properties in the territory.