New World Development (0017) has rolled out the first price list for 88 homes at State Pavilia in North Point, offering them at an average price of HK$18,540 per square foot after discounts, around 25 percent lower than market rates for new projects in the area.

This could pressure the secondary market in Hong Kong Island, according to Centaline Property Agency.

The high-end State Pavilia forms part of New World's redevelopment of the historic State Theatre in North Point.

It is expected to command rents of HK$80 per square foot, Louis Chan Wing-kit, Asia Pacific vice chair of the residential division at Centaline said.