China Vanke moves into Wan Chai
Largest mainland developer expands further into Hong Kong market by buying a residential site for HK$860 million from Soundwill
China Vanke, the largest mainland developer in terms of property sales, has expanded further into Hong Kong's property market by acquiring a residential site in Wan Chai.
Local developer Soundwill yesterday announced it had sold its residential site to Vanke for HK$860 million, or HK$15,190 per square foot.
It is Vanke's second land acquisition in Hong Kong.
"They believe the property markets of Beijing and Shanghai will be similar to the Hong Kong property market in five to 10 years. They want to know how to work in this kind of property market in the future," an analyst said. "They have no plan to expand aggressively in Hong Kong. Their big market is in the United States."
The site at 12-24 Lun Fat Street, near J Residence, covers an area of 7,077 sq ft. There is a 51-year-old building with eight floors on the site. Soundwill bought the building last year. It could construct a residential building with a total gross floor area of 56,616 sq ft.
Mainland developers such as Vanke, Poly Property and China Overseas Land & Investment have acquired a number of sites in Hong Kong since last year, despite the recent down cycle in the city's property market.