Kerry Properties wins Kowloon Tong government site for HK$7.3 billion
Sale price at upper end of expectations. Kerry outbids 10 others to win government’s most expensive land sale this year
The price is at the upper end of market expectations that ranged from HK$6.2 billion to HK$7.5 billion, making it the most expensive government land sale this year. The price is equivalent to a unit rate of HK$21,016 per square foot, the highest for a residential development site in Kowloon at government auction.
The Lands Department on Wednesday said the tender for the 235,182 square foot site on Lung Cheung Road was awarded to Kerry’s wholly owned subsidiary, NMC 6 Ltd.
“The price, which was at upper end of the forecast, indicates developers’ confidence in the luxury housing sector,” said Thomas Lam, head of valuation and consultancy at Knight Frank. Lam had predicted the site could be sold for as much as HK$7.2 billion, citing limited supply as a reason.
“Developers are underpinning hopes on future demand from affluent individuals in China,” said Lam.
As local mainland governments have been introducing measures to cool their sizzling property markets, Chinese investors are likely to diversify their wealth towards Hong Kong, especially in the luxury residential market where supply is limited, he said.