Lai Sun wins Kowloon site for $1.61b

Finance | Aiden He 28 Oct 2021

Lai Sun Development (0488) won the residential site No 79 Broadcast Drive in Kowloon Tong for HK$1.61 billion, higher than estimates, as government data showed home prices have fallen for the second consecutive month.

The Lands Department said it had received 17 tenders for the land with a site area of about 2,217 square meters and a gross floor area of 6,651 sq m.

Vincent Cheung Kiu-cho, the managing director of Vincorn Consulting and Appraisal, said the site is located in an area where there are traditional luxury homes and will command higher prices than nearby Shek Kip Mei. Therefore, he believes that prices for the project can reach HK$40,000 to HK$42,000 per sq ft upon completion.

The site used to be the Educational Television Centre of Radio Television Hong Kong, but last year, the Education Bureau notified the public broadcaster that it had to hand over the building by September 2020 as RTHK had stopped filming new ETV episodes from April 2020.

This is the only land sale for a residential site in Kowloon in the current financial year.

This came after the data from the Rating and Valuation Department showed that Hong Kong's private home price index dropped 0.4 percent, or 1.6 points month-on-month to 396.3 points in September, falling for two consecutive months from July's record high.

The increase of property prices narrowed to 3.39 percent in September compared to a year ago, but home prices have risen 4.32 percent since the beginning of this year.

The rental index, in contrast, went up 0.88 percent to 183.8 from a month ago, continuing its seven-month rise, but the growth also narrowed by 0.34 percentage points from August.

Meanwhile, some new home sales are set to open soon. Kowloon Development's (0034) Manor Hill project in Tseung Kwan O will start its first round of sales on Saturday, which includes 438 homes ranging from 203 sq ft to 428 sq ft.

And Mount Nicholson III at 8 Mount Nicholson Road in The Peak will open six tenders with areas ranging from 4,186 sq ft to 4,601 sq ft from November 4.

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