Cheung Kong said Monday it sold 212 units over a nine-day period to last Sunday, with prices ranging from HK$13,000 to HK$23,000 per square foot.

The three-block development in Tai Hang, near Causeway Bay, has 376 units, with analysts estimating the total development cost at about HK$4,700 psf. Cheung Kong could reap as much as HK$10 billion in sales, compared with the likely development cost of HK$3 billion. This estimated cost consists of a HK$100 million payment to the previous owner of the land, HK$900 million in land premiums to the government and HK$2 billion in construction costs, a property analyst at an investment bank said.

``After 1997, this kind of profit margin is extremely rare,'' he added.

Cheung Kong's Kingswood Villa project in Tin Shui Wai, launched in the early 1990s before the Asian financial crisis halved property values in the city, was sold for HK$5,000 psf, or five times over the development cost of HK$1,000 psf, market watchers said.

Cheung Kong senior sales manager Francis Wong said the company may halt sales at The Legend shortly after the public launch Thursday and keep some units for sale until after the government's policy address in October. It may also keep some units for sale next year.

Although local banks are raising mortgage rates, Wong said prices for luxury flats could rise by a further 10 to 15 percent this year.

Prices of luxury apartments on Hong Kong Island have risen about 20 to 30 percent this year, due to limited new supply.

David Cheung, senior director at property consultant Savills, said that although the HK$3 billion construction cost estimate was ``reasonable,'' whether Cheung Kong could hit HK$10 billion will depend on prices for the remaining units.

He added that ``the really expensive units'' have not yet been released for sale. danny.chung@singtaonewscorp.com