Property market a house divided
Outcome of sales of a luxury and a mass market site suggests the sector is polarised
The polarisation of Hong Kong's housing market is deepening, with a luxury site sold at the low end of market expectations, and a plot designated for mass-market flats fetching a higher price than expected.
Contractor Chun Wo Development beat major developers to secure the luxury development site - which could yield 323,308 sq ft in gross floor area - in Kau To Shan, Sha Tin, for HK$2.71 billion, according to the Lands Department. The price represents an average land cost of HK$8,382 per square foot.
The winning bid was at the low end of market expectations of between HK$2.68 billion and HK$3.01 billion.
However, Sun Hung Kai Properties, the largest developer in terms of market value, snapped up a smaller site in Yuen Long for HK$751 million, said the department.
The result exceeded the market forecast of between HK$530 million and HK$695 million.
The price tag represents an accommodation value of HK$3,243 per square foot.