Demand for luxury properties still exists despite global economic uncertainties and a slowing economy in the city, Kerry Properties says. 'The uncertainties in the global financial market have affected some employees like me, but there is still a group of cash-rich buyers keen to buy quality properties for investment,' said Chu Ip-pui, an executive director of Kerry Real Estate Agency, a subsidiary of Kerry Properties. He cited the positive sales response for the company's residential property Soho 38 in Shelly Street in Central as an example. 'We sold about 50 units, reaping HK$500 million. The average price is HK$15,500 per square foot,' said Mr Chu (left). Seventy per cent of the buyers bought the flats to rent, he said. Soho 38 has 75 units in the 30-storey block that range in size from 400 square feet to 700 sqft. The company's next project will be its 550-unit residential project at 152-160 Kwok Shui Road, Tsuen Wan. It will be targeted for sale in the first half of next year. Mr Chu said market sentiment would be a bit slow in the coming months but he was cautiously optimistic about the outlook for the housing sector because of a shortage of new home supply. Kerry Properties is controlled by the Kuok Group, the controlling shareholder of the SCMP Group, which publishes the South China Morning Post. Meanwhile, Sun Hung Kai Properties expects to generate HK$100 million in rental income per year if all the 500,000 sqft at its grade-A office building in Kwai Hing is leased. Victor Lui Ting, an executive director of Sun Hung Kai Real Estate Agency, said about 30 per cent of the space had been leased at HK$18 per square foot. Phase one of the twin-tower office project, Kowloon Commerce Centre, comprises 500,000 sqft and will ready for occupation in the third quarter, while the second phase is due to be completed in 2010.
