SHKP bags residential site in Sha Tin for $619m

Staff reporter

Sun Hung Kai Properties (0016) won a Sha Tin residential site for HK$619 million or HK$3,952 per buildable square foot, which is within market estimates.

The site in Yuen Shun Circuit of Siu Lek Yuen is the first residential site that the Hong Kong government has successfully sold after September when a site in Kai Tak was won by a consortium led by Sino Land (0083).

It is also the first residential land the government has put up for sale in the current financial year ending in March 2025, attracting 11 bids.

However, the bidding price per sq ft was 55 percent cheaper than a nearby site in Hin Wo Lane sold two years ago. The total price fell within market valuations between HK$470 million and HK$780 million.

SHKP plans to invest HK$2 billion in total in the project, deputy managing director Victor Lui Ting revealed.

Lui said the developer is "very happy" with the successful bid and expects housing demand in such a mature community to be strong.

SHKP plans to build small and medium-sized flats on the plot, he added.

Centaline Property Agency said developers remains conservative about land bids as interest rates and construction stay high currently.

Though the price is lower than two years ago, Midland Realty believes the first successful sale could support future land bids and the property market. The sale of a nearby site, which the government will put up for sale this quarter, will refer to this case as well, said Midland.

Meanwhile, the Pavilia Forest III in Kai Tak will launch its first round of sales of 108 units on Sunday.

The first batch includes 44 one-bedroom, 56 two-bedroom and eight three-bedroom flats, with the cheapest one priced at HK$4.2 million.

The batch will see prices ranging from HK$16,438 to HK$21,288 per square foot after discounts.

Developed by New World Development (0017) and Far East Consortium International (0035), the project collected nearly 5,200 checks as of yesterday afternoon, marking an oversubscription of more than 47 times for the 108 flats.

The Pavilia Forest is being developed in three phases offering 1,305 flats, with the third phase providing 264 flats.

For the first phase, NWD said it had sold 185 units or 93 percent of the units available for sale, to rake in a total of HK$1.3 billion.