Owners seek 20pc more for homes after record land purchase by SHKP The surprisingly high price fetched by a residential site on the Peak at Tuesday's government land sale will stretch the already wide gap between luxury and mass residential prices, property agents say. Most owners on the Peak have raised their asking prices by up to 20 per cent since Tuesday, agents said. 'We will see increasing divergency between the top end and the mass housing market,' said Cheung Pui-lu, a research manager at Midland Realty. According to the property agency, the average price of luxury residences has jumped 19.3 per cent but mass residential prices have risen just 5 per cent. Ms Cheung forecast prices of completed homes on the Peak would set a new benchmark of HK$40,000 per square foot as early as next year. The current record is HK$36,500 per square foot. On Tuesday, Sun Hung Kai Properties paid HK$1.8 billion, or HK$42,196 per square foot, at auction for the lot at 12 Mount Kellett Road. Analysts said it was the world's most expensive land sale and the developer would need to sell its houses at more than HK$50,000 per square foot to make a reasonable profit. Kenneth Chiu Po-kit, a district director for the Peak at Ricacorp Realty, said most private owners in the area boosted their asking prices by 10 per cent to 20 per cent immediately after the auction. 'The market on the Peak is going to become quiet as owners are either marking up their prices or withdrawing their properties from sale in expectations of further increases,' he said. A spokeswoman at Wharf (Holdings) said the developer would review the prices at its Gough Hill Residences project, which comprises five houses. 'We won't arrange any more flat visits to the project until new prices are determined early next year,' she said. Wharf has sold two 7,857 square foot houses for HK$226 million each or HK$28,764 per square foot. Mass residential market prices barely budged after the auction. Crystal Tam, a sales director for Centaline Property Agency in Tseung Kwan O, said most flats in the area were on offer at HK$2 million to HK$3 million. 'We're not seeing any excitement here,' she said, adding that it would take a reduction of interest rates to have a significant impact on the mass market.