A site on Anderson Road in Kwun Tong, where at least 1,000 starter home units shall be developed, has been awarded to CK Asset (1113) for HK$4.95 billion, or HK$4,546 per buildable square foot, at the lower end of market valuation.
CK Asset said it is pleased that the group won the bid and it hopes to contribute to the SAR's housing supply through such development projects. Surveyors previously valued the site between HK$4.6 billion and HK$7.1 billion, or HK$4,200 to HK$6,500 per buildable sq ft.
The price shows developers are bearish on the market, said Centaline Surveyors director James Cheung King-tat.
The site with development limitations earlier only received nine bids, including ones from China Overseas Land & Investment (0688), Sino Land (0083) and Wheelock Properties.
All residential units to be built should range from 250 sq ft to 500 sq ft in saleable area, among which 20 percent shall be studio units, 25 percent shall be one-bedroom units and 55 percent shall be two-bedroom units.
After the developer obtains the occupation permit, the government will randomly select no less than 1,000 starter home units, including 200 studio units, 250 one-bedroom units and 550 two-bedroom units.
The developer is required to offer these starter home units for sale at 80 percent of market price to eligible applicants.
In 2018, Chinachem won another plot of residential land at Anderson Road for HK$3.11 billion, in which the Buildings Department allowed four residential buildings to be built on the site.
Elsewhere, CHFT Advisory and Appraisal valued the residential site on Praya Road in Ap Lei Chau at HK$1.18 billion to HK$1.22 billion, or HK$12,400 to HK$13,000 per buildable sq ft.
Meanwhile, a 242-sq-ft flat at Amoy Gardens changed hands for HK$5.12 million, or HK$21,190 per sq ft, hitting a new high at the estate, according to Centaline Property Agency.
In the primary market, Sun Hung Kai Properties (0016) released 123 flats in the third price list of Wetland Seasons Park Phase 2 in Tin Shui Wai, at an average price of HK$12,639 per sq ft after discounts. The developer will launch 200 flats for sale on Saturday.
And Vanke Property (Hong Kong) will tomorrow open show flats of The Campton, which offers 467 units.
In other news, the one-month Hong Kong Interbank Offered Rate, which is linked to the mortgage rate, slid for seven days in a row, down by 2.45 basis points to 0.59101 percent.
