Luxury site in Island South expected to attract keener bidding than Tuen Mun plot

PUBLISHED : Tuesday, 06 May, 2014, 3:27pm
UPDATED : Wednesday, 07 May, 2014, 3:58am

A luxury residential site in Shouson Hill is expected to attract keen bidding on Friday because land for new housing in high-end districts is scarce.

Surveyors estimate the value of the site at between HK$2.45 billion and HK$3.07 billion, or between HK$28,000 and HK$35,000 per square foot.

In the last land transaction in the area, Nan Fung bought a site at 8-12 Deep Water Bay Road in 2012 for HK$6 billion, or HK$24,180 per square foot.

The site that is up for tender is located at the junction of Shouson Hill Road West and Wong Chuk Hang Path, close to Joy Garden. It covers an area of 116,897 square feet and could provide a maximum gross floor area of 87,673 sq ft.

"There have been few luxury sites available for sale in recent years," said Vincent Cheung Kiu-cho, national director for Greater China at Cushman & Wakefield.

"Also, Hutchison Whampoa's 28 Barker Road luxury project on the Peak and Sun Hung Kai Properties' Shouson Peak recorded strong sales.

"I'm optimistic about the tendering for this site."

Cheung estimated the site was worth HK$3.07 billion, or HK$35,000 per square foot.

James Cheung, executive director of Centaline Property's surveying unit, said: "The bidding for the Shouson Hill site will be keen, as there is a lack of land supply in Hong Kong's luxury residential districts.

"Also, most of the future housing supply is small flats. That's why the luxury sites in Sai Kung could be sold at a better-than-expected price in the past few months."

By contrast, he said, he expected the bids from developers for a site in Tuen Mun, for which tendering also ends on Friday, to be conservative.

The plot at Tseng Choi Street, the former Kwong Choi Market, covers an area of 23,702 sq ft, which could provide 140 mass residential flats with a total gross floor area of 71,107 sq ft.

The winning bidder has to build an 11,797 sq ft residential care home for the elderly and a 3,854 sq ft day care centre for the elderly.

"Tuen Mun is one of the major sources of new housing supply. As there will be plenty of future supply, and the winning bidder has to build a home for the elderly in the project, developers will be conservative in their bidding," James Cheung said.

Surveyors estimated the value of the site at between HK$270 million and HK$350 million, or between HK$1,800 and HK$2,300 per square foot.