Himo Liu
CK Asset (1113) beat off six other bidders to win the Queen's Road West/In Ku Lane Development project in Sai Ying Pun for HK$1.16 billion, the Urban Renewal Authority said yesterday.
The price was lower than estimated.
Based on a gross floor area of about 121,525 square feet, the land price of the project is about HK$9,554 per sq ft, which is about 7.2 percent lower than the previous valuation of about HK$10,300 per sq ft and about 27 percent lower than another project in the same area sold in August.
Sites in Hong Kong Island have rarely been sold for below HK$10,000 per sq ft over the last decade.
The value of the redevelopment project was earlier estimated at about HK$1.46 billion to HK$1.7 billion, with a land price of about HK$12,000 to HK$14,000 per sq ft.
The project will replan the land use and layout of the area and reconstruct the public spaces. The development is expected to have 189 flats on completion.
This is the third residential development tender won by CK Asset this year. Together with the residential estates in To Kwa Wan and Tuen Mun, the developer has spent nearly HK$11.8 billion on land acquisitions this year.
Executive director Grace Woo Chia-ching said the company was delighted with the winning bid as the location is a rare quality site in Central and Western Hong Kong Island.
With many shops and trendy restaurants nearby and the MTR station within walking distance, it is expected to be very popular among young office workers and professionals upon completion.
The six other bidders were Sun Hung Kai Properties (0016), Wheelock Properties, K Wah International (0173), Great Eagle (0041), Regal Hotels International (0078) and Sino Land (0083).
Developers expect the local market to rebound next year, with smaller interest rate hikes expected in the United States and greater prospects for a reopening of the border with the mainland.
CK Asset expects home prices will fluctuate by 10 percent next year while SHKP believes prices and sales will rebound significantly.
But Cushman & Wakefield expects home prices to further fall by up to 5 percent next year. It said buyer appetite will likely still be affected by rate hikes and global economic uncertainties while some homeowners may provide greater room for negotiation amid pressures from rising mortgage payments.
In other news, CK Asset and CK Infrastructure (1038) will invest EUR2.52 billion (HK$20.87 billion) into the joint venture Sarvana, a fully integrated energy management service provider in Europe.
