Wheelock Properties has won a tender for a residential site in Tuen Mun with a bid of HK$1.39 billion.
The Lands Department said Wheelock outbid eight developers and acquired the site for HK$3,683 per square foot. The price is in line with market expectations, which ranged between HK$1.13 billion and HK$1.5 billion.
Vincent Cheung Kiu-cho, a national director of the valuers Cushman & Wakefield in Greater China, said the price was 26 per cent higher than another site in the area sold in February last year. "It showed the developer has confidence in the market outlook and was willing to offer an aggressive price for the site," he said.
Wheelock's managing director, Ricky Wong Kwong-yiu, said the company would spend HK$3.5 billion to develop the site into a luxury residential project. The project will be ready for pre-sale in two years.
"The project will provide more than 20 houses sized about 3,000 sq ft and the rest will be flats. The flats will be sized from 800 to 1,000 sq ft," Wong said.
The site is at the junction of Kwun Chui Road and So Kwun Wat Road in So Kwun Wat and next to Avignon, a luxury villa project developed by Sun Hung Kai Properties. The villas are valued at between HK$7,000 and HK$8,000 per square foot.
Wong said Wheelock chose to bid for the site because it could be developed into a low-density residential project.
"It has the potential to be developed into special flats. As the site is well connected by a number of infrastructures, such as Kong Sham West Highway, we expect the project could attract mainland buyers," he said.
The site covers an area of just under 290,000 sq ft and could yield a gross floor area of almost 377,000 sq ft.
Under the restrictions imposed by the government, the building height of the site has been limited to 10 floors. The developer has to provide at least 460 and not more than 480 flats.