Wing Tai Properties (0369) has won the tender for a 4,400-square-meter residential site in Kwu Tung, Fanling, for over HK$2.6 billion, higher than market estimates of HK$1.7 billion to HK$2.2 billion.
Kenneth Ng Kar-wai, the developer's executive director, said the group is pleased to secure a good location for the project, as the site is only a 10-minute walk to Sheung Shui Station and is close to the Fanling Golf Course.
The winning bid showed that the developer has confidence in the future of the district's luxury market, said Thomas Lam, executive director at Knight Frank. Lam said he expected total investment on the project to reach HK$3.5 billion to HK$3.8 billion, adding that the average selling price may be at least HK$25,000 per square foot upon completion.
The site, Lot No. 4076 in Demarcation District No. 91 at the junction of Fan Kam Road and Castle Peak Road in Kwu Tung came with an average price of HK$9,208 per square foot and a maximum gross floor area of 26,400 sq m.
In the primary market, New World Development (0017) sold a four-room flat in the third phase of The Pavilia Farm atop Tai Wai Station at over HK$45,000 per sq ft, a record high for apartments in the New Territories. The unit, covering 1,695 sq ft, sold at HK$76.50 million via tender, or HK$45,133 per sq ft. Chief executive Adrian Cheng Chi-kong said the developer has cashed out over HK$37.3 billion at The Pavilia Farm.
Wheelock Properties, meanwhile, sold 1,050 units in the first half, receiving HK$18.2 billion, while Sino Land (0083) sold 817 units worth HK$11.1 billion.
In the secondary market, Laguna City in Lam Tin recorded 22 transactions in June, up 38 percent compared to May. A 517 sq ft flat in Laguna City sold for HK$7.8 million after the price was reduced by HK$180,000.
In comparison, transactions at Kingswood Villas in Tin Tsui Wai fell 55 percent month-on-month to 31, as room for price reductions narrowed.
This came as Tseung Kwan O saw 466 secondary deals last month, up 8 percent month-on-month, according to a local property broker.
The Kwu Tung site is close to Sheung Shui Station. SING TAO
