Site in Kennedy Town attracts major players

Himo Liu

Six developers - CK Asset (1113), Great Eagle (0041), Sun Hung Kai Properties (0016), Wheelock Properties, K Wah International (0173) as well as a consortium formed by Sino Land (0083) and China Merchants Land (0978) - are vying for a Kennedy Town site.

The Lands Department said yesterday a total of six bids have been received for the plot at the junction of Sai Ning Street and Victoria Road.

The 240-square-foot plot is currently used as the Kennedy Town bus terminal and other facilities. Were the site to be used solely for residential development, the maximum gross floor area permissible would be around 243,300 sq ft. Market estimates of the site range from HK$970 million to HK$2.31 billion, with a land premium of about HK$4,000 to HK$9,500 per sq ft.

Wheelock said that decision to vie for the site on its own was made in view of the plot's prime location on Hong Kong Island and its proximity to the MTR station. In addition, the company also took into consideration its existing project at No 60 Victoria Road that is near the site.

In the primary market, Henderson Land (0012) has received a total of 7,169 checks for the 228 units in the first batch of its Kai Tak project Henley Park, making the batch 30 times oversubscribed. The discounted average price of the available flats is about HK$21,463 per sq ft.

And from July 4, CR Land (Overseas) and Poly Property (0119) will offer for sale by tender 118 flats at Pano Harbour in Kai Tak.

In other news, Jefferies believes the home price rally in the SAR has basically ended after a roughly 7 percent surge in the first half.