Sun Hung Kai sells 300 Larvotto units

Sale brings in HK$8b for firm, partners as demand stays strong

Sun Hung Kai Properties Ltd, the world’s biggest developer by market value, has sold 300 flats at an apartment project in Hong Kong’s Island South district over the past two weekends.

The sale at the Larvotto project has brought in a total of HK$8 billion (S$1.4 billion) in revenue for Sun Hung Kai and partners Kerry Properties Ltd and Paliburg Holdings Ltd, Victor Lui, an executive director at Sun Hung Kai’s agency arm, said in an e-mailed statement yesterday.

The developers will offer another 64 apartments for sale this week, Mr Lui said.

Demand for luxury homes in Hong Kong remains strong even as the government tries to curb a 38 per cent surge in home prices since the beginning of last year amid concerns that housing is becoming unaffordable.

Luxury property prices may rise 20 per cent this year on a lack of supply and low interest rates, property broker Jones Lang LaSalle Inc said in a report last week.

‘The atmosphere is very hot,’ said Louis Chan, managing director of residential sales at Centaline Property Agency Ltd.

‘There’s a lot of momentum in both new and used home markets.’

Apartments at Larvotto, which have been selling for an average of HK$30 million, will be around 1,500 square feet to 2,500 square feet.

Larvotto is the name of the main public beach in Monaco.

Larvotto has a total 715 units. Hong Kong developers sell units in developments in batches instead of offering them all at once, to gauge demand and take advantage of rising prices.

There were 86 used-home transactions at 10 of Hong Kong’s biggest private housing complexes over the weekend, little-changed from a week earlier, Mr Chan said.

Source : Bloomberg – 27 Jul 2010

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