Repulse Bay building has plenty of development potential
A 60-year-old residential building in Repulse Bay is expected to attract keen attention for its redevelopment potential when it comes up for tender the month.
The landlord - the Hong Kong International School Association - of the five-storey 74 Repulse Bay Road, which has eight flats for leasing, has appointed agency Knight Frank to handle the tender, which closes March 31.
The total saleable area of the existing building is about 14,583 sq ft. But under the land lease and zoning provisions, the site could be redeveloped to yield a total gross floor area of about 16,500 sq ft.
The building height has been limited to up to four storeys above one carport.
The eight apartments in the building are currently being leased, but the agent refused to disclose the rental income. Agents estimate the site could be worth about HK$600 million, or HK$40,000 per square foot.
"Developers would be able to build up to two houses on the site. Based on the recent sale of a house at Shouson Peak at about HK$73,000 per square foot, the prices of the redevelopment project could reach HK$90,000 to HK$100,000 per square foot," an agent estimated.
However, developers will have to pay a land premium levy for building more than one house on the site.
Henry Lam, executive director at Knight Frank, said demand for luxury residential properties, especially en-bloc buildings in the southern part of the island, had always been strong.
"It is true that the luxury residential market turned quiet after the government introduced extra stamp duties in February last year," Lam said.
"But prices will stay firm if the residential and office properties are in prime locations."