Mid-tier property developer KWah International has expanded its footprint to Tseung Kwan O, with the surprise win of a residential site for HK$1.169 billion.
'The market expected existing landlords in Tseung Kwan O such as Wheelock, Sun Hung Kai Properties and Cheung Kong to win this site, while KWah had no projects in the area before,' said Alfred Lau, property analyst at Bocom International, the investment banking unit of the Bank of Communications.
KWah outbid six other bidders, including Sino Land, New World Development and Paliburg Holdings, to win the 54,099 square foot government site in Area 66D1, located near the Tseung Kwan O train station and Evangel College.
The price, equating to about HK$3,929 per sq ft, is within market estimates of between HK$1 billion and HK$1.22 billion.
It is similar to the selling price of HK$4,009 per sq ft for a neighbouring site that was sold to Sun Hung Kai Properties in May. KWah also bid for that site.
Although KWah has been actively bidding for sites in the last few years, the last time the developer bought a site was in December 2009. That plot of land is in Tai Po.
'It needs to replenish its land bank as it has sold a lot of flats at its projects Marinella, The Coronation, Providence Peak and Providence Bay, which were developed under joint ventures with developers including Sino Land,' Lau said.