2024-05-10 28Hse Editor
Faced with uncertain economic outlook and interest rate trends, developers will inevitably be cautious in bidding for land. The tender for a Kai Tak site closed on Monday with six tenders received for the Kai Tak Area 2A’s Sites Two and Three, adjacent to the MTR Sung Wong Toi Station. The land for 1,300 units was acquired by Sino Land for HK$5.35 billion. The land premium per square foot was approximately HK$5,392, which was in line with market expectations. However, compared with CK Asset’s low-priced acquisition in December last year, with a land premium per square foot of about HK$6,138, the price per square foot has dropped by about 12%, setting a new low per square foot for land in the district in 10 years. Daryl Ng, deputy chairman of Sino Land, said that he is confident in Hong Kong's market outlook. ◆Leung Yuet-kam
A total of six tenders were received for the project on Monday, attracting large and medium-sized developers, including CK Asset, Sun Hung Kai Properties, Henderson Land, Wheelock Properties and Nan Fung. Meanwhile, Sino Land partnered with China Overseas, Great Eagle and Chinese Estates Holdings to form a consortium to bid for the project, and eventually won the site.
The site, located close to the Sung Wong Toi MTR station, measures about 145,303 square feet in size and is expected to have a gross floor area of about 992,279 square feet, providing about 1,325 units. The Conditions of Sale stipulate that the winning developer will be required to develop a Neighbourhood Elderly Centre, a Hostel for Severely Mentally Handicapped Persons (HSMH), a Day Activity Centre, a District Support Centre for Persons with Disabilities, a Boys' Home, a Cyber Youth Support Team, and a car park. About 175 metres of underground streets will also be built, accounting for about 11% of Kai Tak’s underground space. The project is valued by the market at about HK$4.5 billion to HK$5.95 billion, with a per-square-foot land premium of HK$4,500 to HK$6,000.
Plans to build quality residential projects
Ng said that the project is adjacent to Sung Wong Toi Station, which connects Hong Kong, Kowloon and the West Kowloon high speed rail. It is also situated in a high-quality school network, connected to the underground shopping street of Kai Tak. Moreover, the project is located nearby world-class developments such as the Kai Tak Sports Park, which is equipped with a full range of recreational and cultural facilities. Subsequently, the development is expected to be highly favourable to the market. Ng emphasised the Group's confidence in Hong Kong's future and its commitment to sustainable development through the construction of quality residential projects with landscaped, green and amenity features, smart home design, and clubhouses.
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