Sun Hung Kai Properties has acquired a residential site in Stanley for about HK$550 million for developing a luxury residential project.
A company source confirmed that SHKP bought a site at 48 to 50 Stanley Village Road for redevelopment.
The 49,600-square-foot site is zoned for low-density residential use. The site could be developed into a luxury residential project with a plot ratio of 0.75 and provide a total gross floor area of 37,200 sqft.
The site has three old residential buildings.
Last year, the owner won Building Department approval to develop 14 three-storey houses and a clubhouse on the site.
Surveyors and property agents expect SHKP to seek approval for a new building plan.
The previous transaction involving a luxury residential site in Stanley saw China Overseas paying HK$17,500 per square foot to acquire the De La Salle compound at Stanley Beach Road in February.
The accommodation value of SHKP's site is about HK$14,700 per square foot.
A surveyor said the transaction price was reasonable because it had no sea view.
Charles Chan Chiu-kwok, managing director of Savills Valuation and Professional Services, expects the prices of the project to reach HK$20,000 and HK$25,000 per square foot in terms of gross area.
Recent property prices at Stanley Court, a 19-year-old luxury project near SHKP's site, have ranged between HK$11,800 and HK$12,100 per square foot, according to transaction data. Prices at the four-year-old Regalia Bay luxury project in Stanley range between HK$15,000 and HK$16,000 per square foot.
The Kwok brothers of SHKP bought 80 per cent of Henerdon Court at 9 Shouson Hill Road for more than HK$710 million in May.