K Wah bids HK$525m for Tuen Mun site
K Wah International, a mid-tier developer run by gaming tycoon Lui Che-woo, has triggered a government auction of a low-density residential site in Tuen Mun.
The Lands Department yesterday announced the government had accepted K Wah International's minimum bid of HK$525 million, or HK$2,201 per square foot, for the site.
The developer has also submitted an offer to the Lands Department for another residential site this month, company spokesman Alexander Lui Yiu-wah said. He expects a government decision on the second site in the next few days.
The Tuen Mun site, next to Hillgrove, will be the second to be put up for auction this financial year when it comes to market on May 29. The first will be a residential site in West Kowloon, scheduled to be offered for sale on May 9.
Property prices at Hillgrove, a low-density residential development of Wing Tai Asia, range between HK$2,500 and HK$3,600 per square foot, according to Ringo Choi, district director at Ricacorp Properties.
The duplex units at Hillgrove reached HK$5,500 per square foot last year, he said.
Surveyor Albert So Chun-hin expects the site to fetch as much as HK$834 million, or HK$3,500 per square foot, while the project may see prices up to HK$6,000 per square foot after completion.
Recent strong sales in projects such as the Royal Oaks in Sheung Shui and the Vineyard in Yuen Long would encourage many developers to bid for the low-density residential site, he added.
The site has previously attracted developers such as Wing Tai Asia and Nan Fung Development to submit offers to the Lands Department for an auction.
The government has rejected eight offers since 2006.
The 183,440 square foot site at Tsing Fat Street is restricted for low-density residential development and could provide a total gross floor area of 238,465 sqft.
Under development restrictions imposed by the Lands Department, the site cannot provide more than 223 units and the building height is limited to six storeys.
K Wah was facing a lack of potential sites for development in Hong Kong as most of its residential projects have been sold out.
A residential site at Shiu Fai Terrace in Mid-Levels East is its only wholly owned development site in Hong Kong. The developer teamed up with Nan Fung Development, Sino Land and Wing Tai Asia for a site in Tai Po last month.
K Wah last month said the group would invest HK$10 billion in development sites on the mainland and Hong Kong over the next one to two years. As the residential development projects offered by MTR Corp and the Kowloon-Canton Railway Corp are targeting major developers, the government land auction has become K Wah's main source for sites.
Amount in Hong Kong dollars that K Wah plans to invest in development sites over the next one to two years: 10b