Former owner of King Yin Lei mansion pays HK$58 million to build houses next door

The former owner of historic King Yin Lei mansion in Mid-Levels has paid HK$57.99 million to the government for a new site to build houses after surrendering the monument site.

The unidentified owner paid the full market difference between the land values of the two sites, the Development Bureau said.

The neighbouring sites on Stubbs Road are the same size and plot ratio, meaning they share the same development potential. The owner will be allowed to build five three-storey houses on the new lot, now a man-made slope.

Surveyors say the premium may reflect the difference in views and in the property-market situations over time. Charles Chan Chiu-kwok, managing director of surveying firm Savills, said assessment of land premiums usually included a range of factors, such as the location and shape of the site, which affects the building layout and thus the view from flats, and the ease of preparing the ground.

But Pang Siu-kei, another surveyor, said that given the proximity of the two sites and their similar development restrictions, it was hard to understand why there was a difference in value. 'The only reason I can think of is the current booming property market making land prices higher than one or two years ago.'

The bureau said the premium was reached in accordance with established procedures, without giving specifics. The government now owns the declared monument.