Victor Li’s CK Asset scores first win at Kai Tak, bags last residential plot on former airport’s runway
- Developer wins plot for HK$10.28 billion (US$1.33 billion), or HK$15,861 per square foot, Lands Department says
- Price reflects confidence in Kai Tak residential market, surveyors say
The developer won the plot for HK$10.28 billion (US$1.33 billion), or HK$15,861 per square foot, the Lands Department said. Its price, at the upper end of market expectations, reflected confidence in the Kai Tak residential market among the city’s developers, surveyors said.
“The winning bid is a little higher than [what we] expected, and the price is very satisfactory. It shows that major developers are confident in the outlook for Kai Tak’s residential market,” said Thomas Lam, executive director at Knight Frank.
The sale comes despite Hong Kong’s worst recession on record and rising unemployment. Market activity has, however, increased recently as the coronavirus outbreak is brought under control. For instance, Wheelock Properties sold more than 300 flats at its Monaco project at Kai Tak in half a month, underlining high demand for apartments in the area.
The tender attracted five bids, a number lower than market expectations, on Thursday last week. CK Asset beat K Wah International, Sino Land, Sun Hung Kai Properties and a joint venture of Wheelock Properties and Hysan Development. The price it paid is the highest on a per square foot basis since China Resources Land and Poly Property Group won Area 4C Site 1 at HK$18,080 per square foot in June 2019.
The spokeswoman said the land had “excellent” conditions, and that it was rare to find an urban plot with sea views nowadays in Hong Kong. The land is located in the front row of the Kai Tak runway and is the only single-sided piece close to Victoria Harbour, she added.
Market valuations for the plot ranged from HK$8.4 billion to HK$10.6 billion. At a plot ratio of about 5.5 times, its gross floor area could go up to 648,143 sq ft. The site area is 117,844 sq ft. The land is likely to yield a mixed development with mainly medium-sized units. On completion, it could sell for HK$28,000 per square foot to be reasonably profitable, said Knight Frank’s Lam. Total investment in the plot could amount to HK$13.5 billion to HK$14.5 billion, he added.
Surveyors said that although it was smaller than the adjacent parcel, Area 4A Site 2, investment in CK Asset’s plot would still be huge.
