Cheung Sha Wan site nets highest-ever price
Top News | Samantha Wong 16 Nov 2017A consortium of five local and mainland developers led by Sino Land have won a residential plot in Cheung Sha Wan for HK$17.3 billion yesterday, beating the HK$16.8 billion price tag for a development site sold in Ap Lei Chau in the southern district in February.
The group - which includes Shimao Property, Wheelock Properties, K Wah International and S E A Holdings - acquired the 208,000-square-foot site on Hing Wah Street West in a government tender.
In 1997, Sino Land bought a residential site in Siu Sai Wan, where it developed the Island Resort housing complex. It paid HK$11.8 billion for the site, the highest that year. The Asian financial crisis which erupted in 1997-1998 fueled steep price declines in the local property market.
The price tag for the Siu Sai Wan site ranks the third highest on record.
Surveyors said the residential project to be built on the waterfront site in Cheung Sha Wan can produce a maximum gross floor area of about 988,000 square feet. It has the potential for 1,200 flats, with average price estimated at about HK$25,000 per sq ft.
The developers need to earmark 38,000 sq ft for public space and has to build a waterfront promenade according to development conditions stipulated by the government.
Competition for the Cheung Sha Wan site was stiff as other major local developers also bid for the site.
They included Sun Hung Kai Properties, CK Asset Holdings, Kerry Properties, Henderson Land Development and New World Development.
Lesser-known players, which also chased after the site, included Chime Corporation, Hang Lung Properties, China Overseas Land and Investment, Kingboard Property Development, and Logan Property Holdings.
Last month, SHKP outbid other major developers for a 52,528-sq-ft site in Cheung Sha Wan with an aggressive HK$5.06 billion offer.
It will build a luxury hotel on the site, described by some analysts as the priciest plot for a hotel venture to date.
The SHKP project will have a total gross floor area of about 374,000 sq ft, including 37,000 sq ft for retail shops and restaurants.
SHKP said it will pay a land premium of HK$3,319 per sq ft for a plot of farm land in Shap Sze Heung in Sai Kung to be converted to residential use.
