Hunghom Peninsula, originally built under the private sector participation scheme, is ready for sale after New World Development and Sun Hung Kai Properties agreed to a land premium amount for changes made to the project. New World chairman Cheng Yu-tung said yesterday the land premium procedure for the project in Hunghom Bay had been completed. 'The project is ready for sale anytime,' Mr Cheng said, without giving a figure for the premium or a timetable for the launch. A source said the developers had accepted a premium of less than HK$50 million for minor amendments, such as improving the units' layouts and adding a clubhouse. 'Developers have to pay the land premium as the project could fetch higher prices after developers upgraded the property to private housing standards,' a surveyor said. Developers have been negotiating with the Lands Department over the premium amount since 2004, when they first announced plans to upgrade the seven residential buildings initially constructed as low-income housing. The surveyor said the premium amount was lower than it might have been under the developer's initial plan to divide larger flats into small units. The developers agreed to renovate the project only after facing public outcry over their plan to knock down the brand-new buildings and replace them with luxury housing. Located next to the student hostel of the Polytechnic University, Hunghom Peninsula has 2,470 units of between 500 and 700 square feet each. It was completed in 2002 and upgrading work began in 2005. Davey Bow Chi-tak, a regional sales director at Centaline Properties, estimated that Hunghom Peninsula could fetch between HK$5,000 and HK$7,000 per square foot, in line with the adjacent Royal Peninsula.