The luxury residential market in Kowloon is seeing a new catalyst for demand following the success of Sun Hung Kai Properties' Ultima. This time, it is Cheung Kong Property Holdings' turn with its Stars by the Harbour waterfront project in Hung Hom. Located on an 81,278-square-foot site that Cheung Kong bought for HK$3.51 billion in 2010, the project offers 321 units in four towers and nine houses, and is due for completion in June next year. "Hung Hom is a well-established estate area. [Near the project] are two grade A offices developed by Wheelock Properties and a Shangri-La hotel. It is two minutes' walk to the waterfront," said Eric Lam, an agent from Ricacorp Properties. "The outlook is quite good." The launch of the project comes at a time when the luxury residential market in Kowloon is seeing small price gains, although it is more stable than on Hong Kong Island. According to research from Savills, prices in Ho Man Tin, which is close to Hung Hom, have increased 0.5 per cent over the past three months, largely driven by Ultima. With the new cross-harbour rail line connecting Tai Wai and Admiralty scheduled for completion by 2021, agents expect more developments close to railway stations, which might lure more potential buyers to the Kowloon market. Cheung Kong said it had so far released the price of 120 units at Stars by the Harbour and would offer 81 units for official sale on Friday due to strong market response. With an average price of about HK$23,000 per square foot for the project, the most expensive unit, a 1,408 sqft flat on the 28th floor at tower one, is going for HK$49.95 million, or HK$35,479 per square foot, after a 16 per cent discount offered by the developer. The cheapest, a 786 sqft unit on the second floor at tower two, costs about HK$15 million, or HK$19,532 per square foot, after the discount. "I think the price is reasonable because in the Kowloon [central business district] area, we cannot find other new projects close to the waterfront," Lam said. Agents believe potential buyers will likely be end-users, based on the pricing, and most will be local buyers. Justin Chiu Kwok-hung, an executive director of Cheung Kong, said about 5 per cent of the buyers of the developer's projects were from mainland China, based on its selling history. He said the main target clients were still Hong Kong residents, adding that he did not think the volatility of the mainland Chinese stock markets would affect demand for luxury developments in the city. "In the past few weeks, we have done some roadshows in China. The feedback was positive. So I expect there should be some buyers from China, but I don't expect too many," he said.