Developer secures order for sale of North Point flats
Apartments in new project expected to fetch $4,600 to $4,900 per square foot
The Lands Tribunal has given approval to Kowloon Development to force the remaining owners to sell a residential site in North Point - the fifth time that a site has come to auction through a compulsory order under acquisition rules.
The developer, which began targeting the 7,600 sq ft site at 24, 26, 28, 30 and 32 Ming Yuen Western Street 13 years ago, acquired more than 90 per cent ownership - the level at which a sale can be forced - after the remaining owners at 28 Ming Yuen Western Street could not be traced.
The Lands Tribunal approved the order last week and appointed Jones Lang LaSalle to handle the public auction at 28 Ming Yuen Western Street, which will have a reserve price of $15.79 million, according to the valuation report prepared by the surveyor of DTZ Debenham Tie Leung.
A date for the auction of the property has not yet been set.
The site area at 28 Ming Yuen Western Street totals approximately 1,600 sq ft and under the regulations of the Building Department can provide a total gross floor area of 12,800 sq ft, worth $1,234 per square foot.
The surveyor expects the saleable unit rates of the site's domestic and retail areas to be about $4,200 per square foot and $4,000 per square foot, respectively.
The site area of the development will be increased to about 7,600 sq ft once acquisition is complete for the entire Ming Yuen Western Street site, clearing the way for the development of a commercial-residential block.
The site has a plot ratio of eight based on the Building Department regulations, with a total gross floor area of 60,800 sq ft.
Centaline Properties branch manager Billy Yim said that the six-year-old residential development which is adjacent to the site is Villa Claire, which was developed by Sun Hung Kai Properties.
The average apartment prices are expected to range between $4,600 per square foot and $4,900 per square foot.
The latest residential development at North Point is La Place de Victoria, a project of Nam Fung Development. The average apartment price in the complex is about $5,900 per square foot.
Because of strong demand for residential developments on Hong Kong Island, developers have been scouring the area for sites.
The last North Point site was clinched by Sun Hung Kai Properties, which purchased a residential block on Ming Yuen Western Street for $380 million or $4,037 per square foot last year.
The Lands Tribunal has received 19 applications for compulsory acquisitions since 1999 but only five applications have been approved.
Savills director Charles Chan Chiu-kwok said that developers normally had to wait as long as 18 to 24 months for their applications to be processed.