The rebound in the Hong Kong property sector has failed to impress Hon Kwok Land Investment, with the company saying it has no plans to shift its investments back to the city. Despite the growing evidence that Hong Kong had entered an economic recovery, high development costs in the city made continued investment unviable for the small developer, chairman James Wong Sai-wing said. '[The recovery] is probably good news but it will not make any difference in our profit and loss account,' Mr Wong said after the firm's annual general meeting. 'Development costs in Hong Kong are too high. We cannot afford it.' Three years ago, Hon Kwok said it was quitting Hong Kong and shifting its focus to southern China. The company now has only one residential-commercial development project, comprising a gross floor area of 202,633 square feet, in Diamond Hill. 'We are now planning to sell it,' Mr Wong said. At the market's peak, the firm, which has a market capitalisation of $644.38 million, had 11 development projects. It will only keep commercial properties in Hong Kong for long-term investment. Construction is under way at its 2,262-unit residential development at City Square in Lowu. The company has presold 500 flats and will dispose of a further 500 to 600 units this year at an average selling price of 10,500 yuan per square metre.