Hong Kong housing

Hong Kong property owners net record high offer of HK$15,383 per sq ft for redevelopment projects

Kowloon locations affect 1,179 owners, who have 60 days to consider the offer

PUBLISHED : Tuesday, 04 July, 2017, 8:01am
UPDATED : Tuesday, 04 July, 2017, 9:00am

Hong Kong’s Urban Renewal Authority announced on Monday the highest acquisition offer on record – of HK$15,383 per square foot – extended to property owners affected by three redevelopment projects in Kowloon.

The offers are to be issued on Friday.

The record came as the city’s home prices have continued to rise. In May, home prices tallied an uptick for the 14th consecutive month. Price records have been broken every month since November last year.

The three projects include two at Bailey Street and Wing Kwong Street, and one at Hung Fook Street and Kai Ming Street.

The whole process is transparent, open and fair
Urban Renewal Authority

The projects affect a total of 1,179 property owners, who have 60 days to consider the offers. It is estimated there are about 1,440 households across the three projects, which cover a total area of about 1.2 hectares.

Commenced last year, the projects are expected to provide 889,000 sq ft of residential floor area and 177,600 sq ft of commercial floor area. Completion is slated for 2026.

The authority said the offer was set by seven independent consultancy firms based on the rates of flats in seven-year-old buildings located in the same areas.

“The whole process is transparent, open and fair,” the authority said in a statement. “As the three projects are in close proximity to each other in the same locality and the date to issue offers to the owners ... is the same, the [authority’s board] approved the highest [rate] among the three projects.”

Kowloon City housing market prepares for take-off as buyers make first approaches to runway redevelopments

Owner-occupiers who accept the offers could choose to buy a flat in the lowest five to eight floors in the future developments, or at the authority’s Kai Tak development, at a price to be disclosed in the offers.

Affected tenants can choose from three options: public housing, the authority’s rehousing scheme, or a cash allowance.

Watch: Why is Hong Kong housing so expensive?