The launch of flat sales at Sun Hung Kai Properties' luxury project near Olympic station in West Kowloon today will provide the first test of market sentiment since the government imposed its latest cooling measures this month.
According to the price lists for the Imperial Cullinan released by SHKP on Sunday, the average asking price for the first batch of 60 flats is HK$18,688 per square foot - which it said was 15 per cent lower than originally intended.
SHKP later unveiled the prices for at least 15 other flats and a 2,524 sq ft simplex, which are priced from HK$22,167 to HK$42,806 per square foot.
Cusson Leung Kai-tong, equity analyst at Swiss investment bank Credit Suisse, said he did not believe the developer was taking a cautious stance in a quieter market. At HK$18,688 per square foot, its pricing was aggressive.
'In the neighbouring development The Long Beach, flats are selling in the secondary market at only HK$11,000 to HK$12,000 per square foot. So the premium is huge,' he said. 'This shows that the developer is confident with its brand as well as the purchasing power of its target market.'
According to property agency Midland Realty's website, one of its latest deals at The Long Beach was sold for HK$9,546 per square foot, while flats at the nearby One Silver Sea went for between HK$13,300 and HK$16,976 per square foot last month.
Leung said it was common for developers to give a discount of about 10 per cent for the first group of buyers. He said cooling measures did not have much impact. 'This project offers sizeable units with three bedrooms or more and there is a market demand for these units ... as their supply has been limited,' he said.