Swire eyes Mid-Levels site ahead of auction
Swire Pacific has indicated it may bid for a luxury residential site in Mid-Levels that will go under the hammer next month.
'Land prices have seen record levels in recent auctions for almost all segments, not just the ones for luxury housing. We are interested in the Borrett Road site but can't say [now] if we will actively bid for it,' said executive director Martin Cubbon.
Surveyors said the 1.05 hectare luxury residential site, which will be auctioned on June 9, could set a record of HK$10.9 billion, or HK$25,000 per sq ft.
Cubbon said he believed prospects for the office and retail sectors were bright. 'Last year, we continued to see rates move up strongly. We do not see much abatement in the office market.'
He said Swire's retail portfolio performed well as the sector benefited from strong year-on-year growth in retail sales of more than 20 per cent in the first quarter.
Swire Pacific has an investment portfolio of 14.91 million sq ft in Hong Kong and 1.55 million sq ft of retail and hotel space on the mainland.
According to Colliers International, grade-A office rents rose 12.8 per cent quarter on quarter in the first three months of this year.
'With sustained, rising demand from existing tenants and limited supply in the market, coupled with buoyant demand fundamentals in the finance industry, we foresee rentals in Central will very likely hit a post-2008 record high in the second half of this year,' said Simon Lo, director of research at Colliers.