Hong Kong residential plot fetches US$230 million as Chinese developer outbids city rivals
China Overseas Land & Investment beats eight rivals to secure a 50-year lease for a 33,712 sq ft housing plot in Ngau Tau Kok
The state-backed developer beat eight rivals to secure a 50-year grant for the parcel in Ngau Tau Kok with its bid of HK$1.8 billion (US$230 million), according to a statement from the Lands Department on Tuesday. The site is expected to yield 470 flats.
The plot on Choi Ha Road, close to the Kowloon Bay MTR station and the private housing estate Amoy Gardens, was valued at between HK$1.3 billion and HK$1.5 billion, equivalent to around HK$4,400 to HK$5,100 per square foot of accommodation value, according to CBRE. Accommodation value is the value of a piece of land divided by the gross floor area of flats permitted to be built on the land.
“The transaction price for the Choi Ha Road site was slightly higher than expected, especially compared with the Jordan Valley site,” said Cyrus Fong, executive director and head of valuation and advisory for Greater China at Knight Frank, referring to a site in the Kowloon area that was sold by tender last month.
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The nine bids for the Ngau Tau Kok site were a positive response as it reflected the market’s strong confidence in acquiring quality urban sites, he said, adding that the developer would focus on small and medium-sized units.