Exclusive community may be on the cards

Themis Qi

The plots which the WKCDA is expected to initially tender are valued at more than HK$15 billion, and a new exclusive community is expected to be built on them, according to surveyors and an economist.

As the WKCD is one of the few places in Hong Kong where cultural, entertainment and commercial facilities are combined, the parcels of land in the district are estimated to have a land premium of about HK$8,220 per buildable square foot or a total valuation of more than HK$15 billion, said Vincent Cheung Kiu-cho, managing director of Vincorn Consulting and Appraisal.

Cheung believes residential projects in the district will attract those who have business in the mainland as West Kowloon Station high-speed rail is nearby.

The average price of homes near the station is HK$27,275 per sq ft, ranging from The Waterfront's HK$20,426 per sq ft to The Cullinan's HK$32,757 per sq ft, data from online platform 28Hse.com shows.

Billy Mak Sui-choi, an associate professor at Baptist University, also expects a new batch of luxury homes to be built between the two museums to attract the wealthy, which may lead to higher home prices.

Though these changes may not match people's expectations for the district, the private developers now may only have interest in residential projects amid the sluggish office market, which can help WKCDA's financial condition, said Mak.

Since sizable sites in premium areas are rare, recent land sale cases in Kai Tak can be referred to, said Chester Leung Hin-ching, senior director of valuation and advisory services at CBRE Hong Kong.

A consortium led by Sino Land won a huge site for HK$5.35 billion or HK$5,392 per sq ft in September 2023. Four years ago a plot near the sea on the old airport runway was sold for HK$12.59 billion or HK$19,636 per sq ft to a consortium of six major developers.

Leung did note several uncertainties that could affect land prices, including whether the WKCDA will propose special terms that may hurt developers' appetite.

themis.qi@singtaonewscorp.com