Chun Wo enters luxury market with Sha Tin site

PUBLISHED : Friday, 06 September, 2013, 12:00am
UPDATED : Friday, 06 September, 2013, 3:39am

Small developer and contractor Chun Wo Development is making a push into the Hong Kong luxury residential property market with a project in Sha Tin at an estimated investment cost of HK$4.8 billion.

On Wednesday, the government announced Chun Wo won the site - which could yield 323,308 square feet in gross floor area - in Kau To Shan, Sha Tin, for HK$2.71 billion by tender.

This is the second government residential site won by Chun Wo, which landed a site in Clear Water Bay Road in July 2001. That site is now occupied by a mass housing project called 8 Clear Water Bay Road.

Chun Wo said the project in Kau To Shan will be a luxury residential development, with 110 villas of between 2,500 sq ft and 5,000 sq ft and 40 flats between 1,700 sq ft and 2,500 sq ft.

Jeff Leung, the firm's property development manager, said yesterday Chun Wo would team up with a partner to develop the site, but he did not identify the partner.

The project is scheduled to be offered for pre-sale in about two years. The entire project is due to be completed in three to four years.

Leung said the company was optimistic about the sales prospects of the project despite the successive government measures to curb the city's property market.

Since October, the government has introduced a 15 per cent additional stamp duty, called buyer's stamp duty, on property purchases by non-permanent-resident and corporate buyers; increased from two to three years the period during which additional stamp duty, called special stamp duty, is payable on quick resales of property, and raised the rates of those duties; and doubled the stamp duty payable on purchases of all property worth HK$2 million or more.

In addition, the Residential Properties (First-hand Sales) Ordinance, which imposes stricter rules on the marketing of new homes, took effect in April.

Chun Wo's project, when completed, will offer a view of Sha Tin Racecourse. There is always demand for homes in Kau To Shan, a traditional luxury district in Kowloon, Leung said.

Looking ahead, the company would focus on mass housing and industrial property, he said.