Exclusive | Murray Road is first grade-A site in Central to go on sale in 20 years
Knight Frank expects prime spot to fetch as much as US$2.4 billion, or US$5,150 per square foot
The government is to kick off the tendering process for Hong Kong’s first grade-A commercial site in Central in 20 years, as record prices continue to be paid in the city, especially by mainland developers.
The plot, on Murray Road, is one of the two commercial sites put out to tender on March 31, Lands Department said on Friday.
Thomas Lam, a senior director at Knight Frank expects the prime site to fetch as much as HK$18.6 billion (US$2.4 billion), or HK$40,000 per square foot.
“The site will certainly attract lots of interest among developers, as new office supply in Central is rare,” he said.
The site, expected to yield a total gross floor are of 450,996 sq ft, could generate bids of between HK$35,000 and HK$40,000 per sq ft, the equivalent of HK$15.7 to HK$18.6 billion, said Lam
In the 2016/2017 financial year, mainland developers have won six government sites for HK$48 billion, and a further plot next to Wong Chuk Hang Station, bringing their total spend on major land acquisitions to HK$52.7 billion.