Li Ka-shing’s property unit buys Kai Tak land for bargain price of US$1.12 billion as developers shy away from big bids

CK Asset will pay 2014 prices for a parcel above the Sung Wong Toi MTR station that is expected to accommodate about 1,750 homes

The price, which translates to US$794 per square foot, is almost 25 per cent below market expectations amid a housing-market slump

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A view of Kai Tak area 2A, Sites 4, 5(B) and 10, taken on September 29, 2022. CK Asset will pay HK$8.7 billion for the land, the lowest price for a parcel of land in the area in eight years. Photo: Dickson Lee

Published: 9:36pm, 21 Dec 2022Updated: 9:40pm, 21 Dec 2022

Tycoon Li Ka-shing’s flagship property developer has picked up land in Kai Tak at 2014 prices, winning the biggest government land sale this quarter at a price almost 25 per cent below market expectations.

CK Asset will pay HK$8.7 billion (US$1.12 billion) for a plot on top of Sung Wong Toi MTR station, according to a statement from the Lands Department on Wednesday. The price translates to HK$6,138 per square foot – the lowest for a residential parcel in the area in eight years – amid slumping home sales and mounting supply of new homes.

The plot, officially designated Kai Tak Area 2A Site 4, Site 5(B) and Site 10, has a gross floor area of 1.42 million sq ft, and is expected to accommodate about 1,750 homes. CK Asset beat Nan Fung Development, Henderson Land Development, Wheelock Properties, Early Light Land (Holdings) and a consortium of K. Wah International, Sino Land and Great Eagle Holdings.

CK Asset is “very happy to win a large-scale parcel in the Kai Tak New Area at a reasonable price this time,” Executive Director Grace Woo Chia Ching said in a statement. “The small and medium-sized residential units are expected to be very popular upon completion and can hopefully bring very desirable returns,” Woo said.

The land sold on Wednesday is numbered 28 on this map of the parcels in the Kai Tak area, former site of Hong Kong’s airport.

The location is superior because of the MTR station, Woo said, adding that a planned underground shopping street will connect to Kowloon City and Kai Tak MTR Station.

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