'Nevertheless, The Belcher's is much smaller in scale and is not positioned as a high-end luxury property like Bel-Air,' Gary Yeung, agent at Midland Realty's branch for the Peak and South Island, said.
Real-estate agents are promoting Residence Bel-Air as a good investment in a sluggish property market because it could yield a return of as much as 7 per cent from rent of at least HK$25 per square foot. Units will be available for occupation in September next year.
Cathy Chiu, branch manager for Ricacorp Properties' Baguio Villa, said: 'Take, for example, a 1,322 sq ft flat with three bedrooms. If purchased at HK$4,100 per square foot, the monthly mortgage is around HK$20,479, with an interest of 2.5 percentage points below the prime rate. The rent is expected to stand firm at HK$25 per square foot, meaning the flat can be rented at over HK$33,000 a month.'
That amounted to a 7.1 per cent yield after the management fee, Ms Chiu said.
Mr Yeung predicted rents could go up to HK$30 per square foot, compared with HK$23 at The Belcher's. 'Bel-Air can match Leighton Hill in Happy Valley, where rent is now HK$30 [per square foot] because it is closer to town,' he said.
Of the more than 200 flats sold at Bel-Air, 28 with an area of 1,322 sq ft to 1,674 sq ft were priced at a rock-bottom level of HK$4,100 to HK$4,200 per square foot, compared with a break-even cost of HK$4,500. The average for the rest of the units is about HK$5,500.
Located at Cyberport, the government's massive technology development project, Residence Bel-Air comprises 544 units, ranging from 750 to 4,100 sq ft and priced between HK$5,000 and HK$8,500 per square foot after the initial lower-priced offers. There are eight duplexes and 23 flats, which are two units combined into one. Each flat has a balcony overlooking the sea and none of the units face each other. Businesses at Cyberport are expected to begin operating in 2007.
Senior director of FPDSavills Frank Marriott said Bel-Air would outperform similar luxury housing estates.
'The prices for luxury properties won't definitely go up this year but Bel-Air will be quite resistant to any price fall because of its uniqueness,' Mr Marriott said.
Eyeing rental and long-term returns, investment fund companies have expressed interest in buying several units - a rare move since the property slump.
The duplexes, with an area up to 4,000 sq ft, will be sold at more than HK$8,000 per square foot while the combined units will be HK$6,200 per square foot.
Ms Chiu said: 'The strategy is that 20 per cent of the flats will be sold at below the average of HK$5,500 per square foot. Once the promotional effect is gained, the rest will be marked up to over HK$8,000. After the initial stage, PCCW Infrastructure won't slash the price any further because Residence Bel-Air is its only project. It can't draw revenue from elsewhere to make up for the loss.'
However, not everyone is convinced Bel-Air will hold up well in the long term as a luxury market investment.
SK Pang Surveyors managing director Pang Siu-kee said: 'For high-end properties, buyers would think of the Peak and Repulse Bay more than Pokfulam. As for rental, there are lots of choices in the range of around HK$40,000 a month for a flat of about 1,300 to 1,400 sq ft.'
In Kowloon, luxury properties recently released are drawing strong response.
K Wah International put three luxury flats at The Palace in Kowloon Tong on the market at a discount of HK$4,581 per square foot - a 15 per cent reduction on previous sales.
Sun Hung Kai Properties' 1 Ho Man Tin Hill Road in Ho Man Tin is selling at an average of HK$7,000 per square foot.
Graphic: pro02agwz
ncG1vNJzZmivp6x7tK%2FMqWWcp51krrPAyJyjnmdkZYR5fJdooKeulajBrrHNrWSpp6Sau7W1wKVkoKGmmsBuvsSsoJ2dnpiybq7EpWSaoaJisqWzxA%3D%3D