China team wins Kai Tak site for $12.92b

Top News | Stella Zhai 27 Jun 2019

A consortium comprising two mainland state-owned enterprises - China Resources Land and Poly Property - has been awarded the tender for Kai Tak Area 4C Site 1 in Kowloon for HK$12.92 billion, or HK$18,080 per square foot - in line with expectations.

The site closed for bidding on Friday after it had been postponed twice from June 14 due to the social unrest. Surveyors valued the site at HK$12.1 billion to HK$14.3 billion, or HK$17,000 and HK$20,000 psf.

The purchase price per sq ft of the site is 8 percent lower than that of the residential 4C Site 2, which sold for HK$19,636 last month, but is still in line with market consensus, Midland Realty said.

James Cheung King-tat of Centaline Property Agency also said the recent forfeits and political uncertainty have affected market sentiment to some extent, and property developers have set prices cautiously. The agency previously revised down its estimate of Site 1 by 10 percent from HK$14.28 billion to HK$12.86 billion.

The consortium, Fame Well Creation, outbid five other tenders from developers that included Sun Hung Kai Properties, CK Asset and Kerry Properties, as well as joint investments by K Wah International with Sino Land, and a consortium of China Overseas Land and Investment with Wheelock and Co.

This is China Resources' first attempt in Kai Tak and is Poly's second project. Poly's first project at Kai Tak, Vibe Centro, recorded two forfeited deposits of HK$475,800 and HK$340,000 on Tuesday.

The site, known as New Kowloon Inland Lot No 6553, has an area of 102,053 sq ft and is designated for non-industrial purposes. The minimum gross floor area is 428,633 sq ft and the maximum gross floor area that may be attained is 714,374 sq ft.

The psf price of the development is expected to reach HK$1,933,000 upon completion, said Knight Frank.

Developers have been launching price lists for new residential units after an oversubscribed week. A total of 193 apartments of Wing Tai Properties' Oma Oma in Tuen Mun will be put on sale on Sunday. It also plans to launch 36 special units sized between 316 sq ft and 1,659 sq ft by tender for around HK$30,000 per sq ft.

Separately in the secondary market, a 956-sq-ft flat at Caribbean Coast in Tung Chung fetched HK$9.2 million or HK$9,623 per sq ft, hitting a new low since January.

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