Leading today’s Hong Kong real estate headlines, a residential site in Kwun Tong that could be worth up to HK$3.4 billion brought in two dozen bids from a roster of heavyweights including CK Asset, Sun Hung Kai Properties and Henderson Land. In related news, Hong Kong’s land premiums are poised to hit a record high amid a blizzard of pricey transactions. Retail real estate is hopping too, with sales volume surging to a five-year high in 2017. Read on for these stories and more.
A residential site located off Anderson Road in Kwun Tong, east Kowloon received at least 24 bids Friday. Bidders include CK Asset, Sun Hung Kai Properties, Henderson Land, Sino Land, Kerry Properties, Wheelock Properties, New World Development and K Wah International.
The residential lot measures 57,631 square feet (5,354 square metres), and is approved for a buildable area of 259,341 square feet (24,094 square metres). It is estimated to be worth HK$1.8 billion to 3.4 billion ($230 million to $435 million), equivalent to HK$7,000 to 13,000 ($895 to $1,663) per square foot. Read more>>
Centaline Property said that Hong Kong recorded 1,885 retail property transactions in 2017, with sales volumes reaching their highest levels since 2012. Total transaction volume reached HK$66.8 billion ($8.5 billion), a jump of 180 percent from the previous year’s HK$24 billion ($3 billion).
The number of transactions in December alone hit 161, with a sales volume of HK$2.5 billion ($319 million), the highest in that month since Centaline started tracking in 1995. Read more>>
Land premiums for the financial year 2017-18 will reach a record HK$196 billion ($25 billion), estimated financial advisory firm EY. The number exceeds the firm’s original estimate by HK$95 billion ($12 billion).
EY added that the vibrant property and stock markets last year would contribute HK$81 billion ($10 billion) of stamp duty revenue for the city. Read more>>
Real estate consultancy Knight Frank said Central’s office rent will rise no more than five percent this year.
Average rent for Central’s premium grade A offices was HK$188.7 ($24) per square foot in December, a 0.7 percent increase over the previous month. Over Central rents in general last month recorded an annual increase of 5.2 percent to HK$152.2 ($19) per square foot. Read more>>
Sun Hung Kai Properties’ new project Babington Hill in Mid-Levels opened for sale on Thursday. The developer offered 30 units as the first batch. The average price per square foot is HK$32,200 ($4,118). The cheapest apartment of 581 square feet (54 square metres) costs HK$19.9 million ($25 million).
Victor Lui, the developer’s Deputy Managing Director, said the pricing is reasonable because home supply in the area is limited. Read more>>
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