Another record-breaking plot of residential land sold in Hong Kong, although this time not to a mainland developer. Hong Kong’s Lands Department announced today that local champion The Wharf won a tender for a site in Kowloon Tong, a traditional upscale residential area in Kowloon for HK$12.4 billion ($1.6 billion), representing an average price per buildable floor area of HK$28,600, the highest-ever for a Kowloon project.
The lot at the junction of Lion Rock Tunnel Road and Lung Cheung Road, has a site area of about 121,228 square feet (11,262 square metres) and is approved for construction of a total gross floor area of 436,417 square feet. The new project is expected to be developed as a mid-density luxury housing property of 680 flats, according to media reports.
Hong Kong Heavyweight Outbids 12 Rivals for Kowloon Tong Prize
The price per gross floor area of HK$28,600 for Wharf’s latest trophy broke a 2016 record set by Kerry Properties, which purchased a site in Beacon Hill in Kowloon Tong for the equivalent of HK$21,000 per square foot of housing.
Wharf’s offer bested nine other bids from a total of 12 competing developers including Li Ka-shing’s CK Asset Holdings, Henderson Land Development, Kerry Properties, Sun Hung Kai Properties, K Wah International, Hang Lung Properties, China Resources Land, Great Eagle, and a consortium composed of New World Development, China Overseas Land & Investment, Sino Land and Far East Consortium International.
Mainland Buyers Back Away From Hong Kong Residential Projects
The potential luxury home site attracted just two mainland developers — China Resources Land and China Overseas Land, suggesting the days of developers from the north dominating Hong Kong’s residential market might be over — at least for now.
Mainland developers dominated Hong Kong’s market for new residential land for most of 2016 and 2017, including spending over HK$44 billion ($5.6 billion) to purchase all of the residential plots auctioned across the city during the first half of last year.
That trend has shifted in recent months. A residential site in the Wong Chuk Hang area of Hong Kong island sold via public tender in December received just one bid from a mainland contender — China Resources Land. The Shenzhen-based developer was also the sole bidder from north of the border for a residential site in Yuen Long in May last year.