The Coast Line II, the new residential projects of Cheung kong in Yau Tong, is priced lower than the market expected. As a result, it drew public attention for further discussion. The price of The Coast Line II is about $14,997p.s.f., which is approximately 17% lower than the property price of newly completed flats in the same district in recent years, so the market commentators unanimously believe that Cheung Kong prefers cash flow rather than stockpile in the current market.
This direct comparison each project’s p.s.f. seems reasonable. But the off-the-plan period of 
The Coast Line II is 26 months, and if the clients purchase these new flats, they will still have to rent the premises for at least two and a half years, and their annual rental expenses will be about 3% of the sales price, which will add up to 7.5% of the listing price at the end of the whole off-the-plan period.
In addition, the property price tends to decrease in coming years., and if the annual fall is about 3%, the total drop is about 7.5% in two and half years later.
Considering rental expenses and the reduction of the property price, it will increase the total cost of 15% to the listing price. For the purchasers of this project, those expenses must be included in the cost of buying these premises, so that the listing price of The Coast Line II is fair market price, and there is no aggressive price-cutting strategy in managing the sales of this residential projects.
If the decline of property prices expands to 8% per year, the accumulation of the decline will rise to 20%, plus rental expenses, the total cost of purchasing these new premises will add up to 30% to listing price.
Cheung Kong, the fair pricing strategy accelerating the cash flows, is likely to maintain a healthy cash flow statement. In this turbulent market conditions, it is particularly important to offload the fixed assets to keep the strong cash flows.
For users, the pricing of this project is still the most attractive among the new developments in the same district, and if they do not want to purchase second-hand properties, The Coast Line II is still their initial choice. According to the records of over-subscriptions of these flats, this project can be quickly sold out in near future.
