HONG KONG (XFN-ASIA) - Sun Hung Kai Properties Ltd sold a unit at its luxury housing project Severn8 at the Peak in Hong Kong at a record 41,000 hkd per square foot, generating 210 mln hkd, according to Victor Lui, executive director of Sun Hung Kai Real Estate Agency.
'The selling price represents 41,000 hkd per square foot, which is a record high selling price in Hong Kong and even in Asia,' Lui told XFN-Asia.
He said the buyer is a local businessman who has interests on the mainland. He did not identify the person.
The Severn 8 project consists of 22 three-storey houses, with sizes ranging from 3,300 to 5,100 square feet.
Lui said the record price reflects the fact that demand for luxury housing remains strong in the territory.
Sun Hung Kai will retain some houses in the project for rental purposes as it is expected that prices of luxury housing will keep rising, he said.
'We will temporarily stop the sale of the remaining 3-5 houses but we will rent them out. I expect rental to fetch 100 hkd per square feet' due to strong demand from rich people and businessmen who travel to and from China, Lui said.
He noted that the latest deal at the Severn8 project strengthens the company's confidence over sale and pricing of a planned development at 12 Mount Kellett Road, Peak Pavilions.
Sun Hung Kai secured a 79,147-square foot luxury housing site at 12 Mount Kellett Road in a government land auction last December with a bid of 1.8 bln hkd. The price translated to a land cost of 42,196 hkd per square foot, a new record in government land auctions in Hong Kong.