Sun Hung Kai Properties cuts prices of luxury project in HK

Sun Hung Kai Properties (SHKP)<16>, Hong Kong's second-largest real estate developer, has slashed the prices of its Peak One, a luxury low-density project in Sha Tin, to HK$6,801 to HK$8,011 per square foot, 35% less than an adjacent project, and plans to release the first 20 units tomorrow at around HK$7,366 per square foot, the South China Morning Post reported on Thursday.

The current prices, around 47% lower than the indicative price of HK$14,000 per square foot earlier this year, was sending a signal to the slowing property market that the developer was cautious about the outlook, real estate agents said.

Victor Lui Ting, an executive director of Sun Hung Kai Real Estate Agency, said SHKP adjusted the target price in a bid to draw buying interest, as the global financial turmoil has affected the city's residential market.

Lui expects SHKP will generate about HK$2 billion from the sale of 150 units this year.