The $728.88 million price tag agreed this week for the Hotung mansion on the Peak accurately reflects demand for super-luxury developable sites, analysts say.
'The supply of such luxury sites is limited,' one agent said. 'As more and more of these large sites get sold off, there will be fewer and fewer to buy. The demand has always been there.' Jackie Langridge, director with the prestige homes division of First Pacific Davies, said many of these properties were being bought for their redevelopment potential.
The mystery buyer paid an accommodation value of $21,000 per square foot for the plot on the Peak, which has a plot ratio of 0.5 and a developable area of 35,000 square feet.
By the time the purchaser rolls in construction costs, the cost of the loan and profit, a buyer could be looking at a super deluxe free-standing house or townhouse costing about $30,000 a square foot, according to analysts' estimates.
A spokesman for C.Y. Leung & Co, one of the agents handling the tender sale, said the lease had been modified a number of years ago, allowing for a variety of residential buildings on the 69,535 sq ft site. 'It is now an unrestricted lease, meaning that the new owners can put up what they like,' he said.
According to agents, the purchaser will have little trouble finding buyers for the new property.
Not all analysts thought the buyer had made such a wise move.
'Unless they have the opportunity to increase the plot ratio, it seems like an awfully high price to pay,' one said.