Developers eye Ap Lei Chau, Sai Kung sites

PUBLISHED : Wednesday, 07 March, 2012, 12:00am
UPDATED : Wednesday, 07 March, 2012, 12:00am


Two residential sites open for bidding at Ap Lei Chau and Sai Kung are expected to draw keen interest from developers and could net the government up to HK$2.33 billion, say surveyors.

'The sites are well situated and the one on Ap Lei Chau offers a sea view,' said Midland Surveyors director Alvin Lam Tsz-pun.

'Also, unlike some previous land sales, the government has not imposed any restrictions on flat sizes and numbers. So I believe the lack of restrictions is a key reason why both sites will attract developers.'

Covering 32,830 square feet, the lot on Ap Lei Chau has a maximum gross floor area of 229,811 square feet. It is near the bridge linking the island with Aberdeen and is next to Sham Wan Towers, where second-hand flats are selling at over HK$10,000 per square foot.

The site has a view of the Aberdeen yacht club and the Aberdeen South Typhoon Shelter. Surveyors expect it to sell for between HK$1.15 billion and HK$1.84 billion, or HK$5,000 to HK$8,000 per square foot.

Lam, who estimates the site will sell for HK$8,000 per square foot, said 200 to 300 two- to four-bedroom flats could be built on it. He said there had always been strong demand for sites on the Hong Kong side of the island, and it would attract medium-sized to large developers.

Vincent Cheung Kiu-cho, the national director of valuation advisory services at property broker Cushman & Wakefield, also forecast that the site would be sold for HK$8,000 per square foot because of the sea view it offered and its convenient location near the MTR's South Island line, now under construction. Cheung said the winning bidder could sell flats at HK$12,000 or more per square foot.

He believed the two sites would draw keen interest, with at least six developers bidding.

The site in Pik Sha Road, Sai Kung, has a maximum gross floor area of 32,787 square feet. Surveyors expect it to sell for between HK$328 million and HK$590 million, or between HK$10,000 and HK$18,000 per square foot. The area has a height restriction of three storeys.

Centaline Surveyors director James Cheung King-tat said the Sai Kung site was surrounded by villas and the winning bidder was likely to develop luxury houses.

'Houses in the secondary market are selling at over HK$20,000 per square foot in the area, depending on the location, but there isn't much new supply on the market.' He expects the site to sell for around HK$18,000 per square foot.

Ringo Lam Chun-chiu, valuations director at AG Wilkinson & Associates, said the two sites were better located than the Peng Chau one sold last month which attracted only two bidders. It sold for HK$19 million, or below HK$516 per square foot - far below market estimates. 'With the increases shown in property sales in the last few weeks, the land sales will be an indicator showing whether developers believe this improved sentiment can persist,' Lam said.

Tenders for the sites close on March 16.