Kai Tak’s residential land soars to record HK$25.1 billion price tag as Sun Hung Kai wins tender
One of the city’s largest land owners wins government tender for plot with gross floor area of 1.42 million sq ft
Sun Hung Kai Properties has prevailed in a lacklustre tender for a plot of residential land at Hong Kong’s former Kai Tak airport site, paying a record HK$25.16 billion (US$3.2 billion) for the city’s most expensive land parcel, according to data provided by the Lands Department.
The site, located next to the Kai Tak MTR station, can yield a gross floor area of 1.42 million sq ft.
“It is the new land king. It will fuel further rises in home prices in the area,” said Victor Lai Kin-fai, a managing director at Centaline Surveyors.
The total price translates to HK$17,776 per square foot, which means an apartment complex built on the site – squeezed between two commercial parcels previously owned by Nan Fung Development and Lifestyle – will sell for at least HK$32,000 per square foot, after adding in development and construction cost, and the developer’s profit, according to valuers.
Sun Hung Kai Properties said the total investment cost for the site will be about HK$40 billion.
The jaw-dropping price will put further pressure on Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor to ease a housing shortage in the world’s least affordable city for owning a home.
Sun Hung Kai Properties, one of the city’s largest land owners, had submitted its bid on its own. In doing so, it beat competitors such as Henderson Land Development, CK Asset Holdings and a consortium of Sino Land, Kerry Properties, K Wah International with Lifestyle International Holdings. Another one was formed by Wheelock Properties, Chime Corporation, New World Development Company and China Overseas Land and Investment.