Happy Valley government blocks up for tender

PUBLISHED : Saturday, 22 August, 2009, 12:00am
UPDATED : Saturday, 22 August, 2009, 12:00am

The government has put up for tender two residential blocks in Happy Valley estimated to be worth about HK$3.45 billion, as the high-end market heats up.

The Government Property Agency is inviting bids for Blocks A and B of Winfield Building at 1-5 Ventris Road, near St Paul's Primary Catholic School.

The 25-year-old complex comprises three towers, but only Blocks A and B, previously used for staff quarters, are owned by the government. The flats at Block C have been sold to individual flat owners by the developer.

Blocks A and B provide 84 units with a saleable area of 1,519 or 1,953 square feet each.

Property agents said the gross area of each unit is 1,940 or 2,311 sqft.

Because the three blocks are on a common three-storey podium, the winning bidder cannot redevelop them unless it acquires ownership of Block C.

The tender will be closed on September 11.

Charles Chan Chiu-kwok, a managing director at Savills Valuation and Professional Services, expects the towers will catch the attention of developers rather than investors.

The two blocks are worth about HK$3.45 billion, based on his valuation of HK$12,000 per square foot.

'Property prices could reach more than HK$15,000 per square foot after the developers renovate the buildings,' said Mr Chan.

Wilson Lau, an associate director of Centaline Property Agency, said the units on higher floors enjoyed views of Happy Valley Racecourse, which could fetch higher prices.

He said the asking prices of Block C units range between HK$11,600 and HK$14,900 per square foot.

The two blocks were available for lease after the government changed the civil servants' benefit schemes a few years ago.

There are 54 units, with 54 parking spaces, that have been leased.

The rent reached HK$25 per square foot last month.

Thirty of the 84 units will be sold with vacant possession and the rest subject to existing tenancies.

Winfield is the second en bloc residential building owned by the government up for tender.

The previous building, the 40-unit Block A at Wylie Court in Ho Man Tin, was put up for tender in 2006.

Sleeping room

Number of units available in the two former government quarters: 84