Kai Tak runway area site price takes off

Top News | Tereza Cai 14 Nov 2019

Ultra Keen - a consortium formed by China Overseas Land and Investment, Henderson Land, K Wah International and Wharf Development - won the tender for a non-industrial seaside site for HK$15.95 billion.

It was nearly 20 percent lower than the top end of the expected price range but it was still a record high in the former runway area.

The tender for the 50-year land grant of Kai Tak Area 4A Site 2 landed on the low end of the expected price range of HK$15.67 billion to HK$19.88 billion, after the maximum price was cut by 8.35 percent from HK$21.69 billion last week, amid the trade war and social unrest.

The market expected the average price per square foot of gross floor area to be between HK$13,000 to HK$16,500. It ended up slightly higher than the bottom and amounted to HK$13,283 per sq ft based on the maximum gross floor area.

Eight residential sites in Kai Tak have been granted to developers since November, and the highest average price per sq ft was Area 4C Site 2, which went for HK$19,636 per sq ft, tendered in May before the unrest.

The second-highest price was recorded in June for Area 4C Site 1 - awarded to Poly Property and China Resources Land. It was another seaside site adjoining to the current plot, with a similar land purpose. It fetched HK$12.92 billion, or HK$18,080 per sq ft of gross floor area.

The average price per sq ft of gross floor area was 36.11 percent higher than the current site.

Area 4A Site 2 is designated for non-industrial purposes - excluding office, godown, hotel and petrol filling station - and government accommodation.

Expected to be completed by June 2025, the government accommodation will incorporate a residential elderly care home, a center for integrated home-care services team, four small group homes, a daycare center for the elderly, a neighborhood elderly center, an integrated vocational rehabilitation services center and a hostel for moderately mentally handicapped persons.

The 197,552 square feet site has a minimum gross floor area of 703,033 sq ft and a maximum gross floor area of 1,205,052 sq ft, both including the government accommodation that is to be constructed by the purchaser.

The other three tenderers for the site were Citypoint Investment under CK Asset, Dynasty Asia formed by Sino Land, Great Eagle and Chinese Estates, and Fair Opal under Sun Hung Kai Properties.


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