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Sun Hung Kai Properties’ US$1.1 billion land acquisition in Kwu Tung buoys property owners in area close to Shenzhen
- Property owners in Kwu Tung have raised their asking price by 5 per cent, after a subsidiary of SHKP paid 40 per cent more than market expectation for a 1.19 million sq ft site
- Agents expect average prices in Kwu Tung to rise to HK$18,000 to HK$20,000 per square foot from HK$14,000 to HK$17,000 per square foot as the area starts developing
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Property owners in Kwu Tung have increased their asking prices by 5 per cent, after a unit of the city’s largest home builder paid a jaw-dropping price for a large residential site in the area neighbouring Shenzhen.
Asset Capital Limited, a subsidiary of Sun Hung Kai Properties (SHKP), last month spent more than HK$8.61 billion (US$1.1 billion), some 40 per cent higher than market expectation, to outbid nine rivals to win a 1.19 million sq ft site in the northern New Territories.
An industry observer estimates the homes to be built on the site could fetch as much as HK$18,500 per square foot in three years’ time.
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“Some owners have already increased their asking price, while some have decided to take their property off the market to reconsider their pricing,” said Yen Wong, senior associate director at Ricacorp Properties’ Sheung Shui branch.
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Currently, Kwu Tung mainly comprises low-density luxury houses, with around 100 units available for sale across eight estates, according to Angus Hui, director at Centaline Property Agency’s Kwu Tung, Fanling and Sheung Shui luxury division.
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