Hong Kong builders pay US$1 billion for first plot on runway of old Kai Tak airport
- Voyage Mile, New World Development, Henderson Land Development and Empire Development win bid for 574,615 sq ft site, says Lands Department
What a difference six months makes.
A plot of prime waterfront land in Hong Kong has sold at a price 18 per cent lower than a comparable tender in the same area.
A consortium of four major local developers won the auction for the first residential site on the runway of the former airport at Kai Tak for HK$8.33 billion (US$1.06 billion).
Voyage Mile, a unit of Wheelock Properties, New World Development, Henderson Land Development and Empire Development Hong Kong won the bid, the Lands Department announced on Wednesday.
At the last auction in May, Sun Hung Kai Properties paid a record HK$25.16 billion, or HK$17,776 per square feet compared with HK$14,500 sq ft in Wednesday’s auction.
However, it was in line with the market expectations, as surveyors cut the value of the site by as much as 15 per cent to HK$7.75 billion, or HK$13,500 per square foot, showing a cooling appetite for risk as market sentiment continues to soften.