Shouson Hill luxury site fetches HK$2.7b

PUBLISHED : Friday, 16 May, 2014, 1:11am
UPDATED : Friday, 16 May, 2014, 1:11am

A luxury residential site in Shouson Hill sold for the fifth-highest land price in the city yesterday, in contrast to a mass residential site in Tuen Mun, which saw the price tumble to a 12-year low.

Emperor International teamed up with Shimao Property chairman Hui Wing-mau and mainland commercial developer Mingfa International to win the tender for the site in Shouson Hill for about HK$2.71 billion, or HK$30,888 per square foot, within market expectations.

Emperor and Hui each has a 40 per cent interest in the project, with the remaining 20 per cent held by Mingfa.

The price is 28 per cent higher than a nearby site sold to Nan Fung Development for HK$24,180 per square foot two years ago. It is the fifth-highest price in terms of gross floor area.

"The price is reasonable. A house at Shouson Peak has just sold for HK$79,783 per square foot. It reflects demand for houses in the area and developers are also able to get a good offer," said Vincent Cheung Kiu-cho, a national director for Greater China at Cushman & Wakefield.

Emperor plans to spend HK$1 billion to build 20 to 30 houses on the site in the next 36 to 42 months.

"Shouson Hill is a traditional luxury residential area," Emperor director Donald Cheung Ping-keung said. "The housing demand is strong and the land supply in the area is limited.

"Even if the property price in the area is flat in the next three years, we will still able to achieve attractive profit, based on the current price. It won't be a mistake buying this site."

The site, at the junction of Shouson Hill Road West and Wong Chuk Hang Path, has an area of 116,897 sq ft and could provide a maximum gross floor area of 87,673 sq ft. The tender attracted 16 bidders.

Meanwhile, a site at Tseng Choi Street in Tuen Mun was sold to Chun Wo Development and Excel Billion Corp for HK$232.8 million, or HK$1,530 per square foot.

That is 28 per cent less than another site in the district sold to Nan Fung Development for HK$2,139 per square foot in February.

Alnwick Chan Chi-hing, the head of valuation and professional services at Knight Frank, said: "Since there will be plenty of housing supply in the district, developers' offers for sites in Tuen Mun would be more conservative."

A Chun Wo spokeswoman said the company owned more than half the project. "We believe flats in Tuen Mun have upside potential as the area would benefit from the infrastructure being built, such as the Hong Kong-Zhuhai-Macau bridge," she said.

The site has an area of 23,702 sq ft and could provide 140 flats. The winner has to build an 11,797 sq ft care home and a 3,854 sq ft day care centre for the elderly.