(Bloomberg) -- Sun Hung Kai Properties Ltd., Hong Kong’s biggest developer, has lowered the floor for new home prices in the city.

The first batch of units in its Yoho West development has an average price of HK$10,888 ($1,397) per square foot — a six-year low for new homes, according to local newspaper Sing Tao. Developers have been facing mounting pressure to cut prices as Hong Kong’s property market continues to suffer under high interest rates.

The low pricing by the city’s leading developer also shows that the government’s recent measure to cut property taxes is insufficient to lift the market. Major project launches in the two weeks following the late October announcement only recorded an average first-day sell-through rate of 24.6%, compared to 73.9% in the third quarter, according to property agency Jones Lang LaSalle Inc. 

As mortgage burdens deter buyers, developers have become more cautious in acquiring new projects. Earlier this month, a residential site in the Tung Chung area near the airport didn’t receive any bids for development — the first time in a decade — reflecting builders’ pessimism.

Read more: CK Asset to Sell Hong Kong Homes at Lowest Price in Seven Years

Nonetheless, Sun Hung Kai management remains positive. Interest rates are likely to peak and fall in the first quarter next year, which will help boost the property market, said Victor Lui, deputy managing director, at a press conference about the project on Monday.

There are 280 apartments available for sale at Yoho West. The company expects the units to attract first-time homebuyers and small families to the Tin Shui Wai area in northwest New Territories.

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