Fair demand for Sunshine City flats

THE decision by Henderson Land Development to impose an 11 per cent cut in prices drew an encouraging but still lower-than-expected response for its new residential development at Sunshine City in Ma On Shan.

The proposed sale of 68 units at Block L of its fourth-phase development at Sunshine City received about 257 applications, making it 2.9 times oversubscribed in a seven-day registration programme.

Responding to the result, Henderson Land has decided to put another 32 units on the market at the same selling price. Sales will begin today.

The 68 units averaged prices of $4,763 per square foot, representing an 11 per cent drop from its last offering in May, falling to the level achieved in the secondary market.

The launch of the pre-sale followed the encouraging land auction on July 26.

Sun Hung Kai Properties is also taking advantage of the encouraging sentiment brought on by the land sales with the release of its residential projects for public sale.

However,the launch of 40 units at Block 10 of its Villa Athena development, next to Sunshine City, was only one-time oversubscribed.

''In view of the attractive price, the response was not exciting,'' said Peter Wong, branch supervisor at Centaline Agencies Co.

Mr Wong expected a further drop in prices for Henderson Land's coming sales for the remaining units in Sunshine City.

In May, Henderson Land reduced the prices of Sunshine City flats by more than 10 per cent, but sales response was weak.

Meanwhile, the tender for Nan Fung Development's luxury development, Ondina Heights, on Peak Road did not meet a strong response, with two companies expressing interest.