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Hong Kong property
PropertyHong Kong & China

Chinese builders pay record HK$16.86 billion for Ap Lei Chau site

Property agents expect apartments on the site to sell for at least HK$32,000 per square foot, a record for Ap Lei Chau

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View of the site at Lee Nam Road, Ap Lei Chau. Photo: Edward Wong
Peggy Sito,Summer ZhenandNaomi Ng

Two Chinese developers paid a record HK$16.86 billion (US$2.17 billion) for a plot of residential land at Ap Lei Chau, topping market valuations by almost 50 per cent, making it Hong Kong’s most expensive lump-sum sale to date.

A land parcel measuring 126,595 square feet (11,761 square metres) was sold by tender to Unicorn Bay (Hong Kong) Investments, according to the Land Department’s data. The buyer is a venture between Logan Property Holdings of Shenzhen and Guangzhou-based KWG Property Holding.

With a total gross floor area of 762,091 sq ft, the price translates to HK$22,118 per square foot in land cost. Property agents expect apartments on the site to sell for at least HK$32,000 per square foot, a record for the district.

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Ap Lei Chau, Cantonese for “duck’s tongue peninsula”, is a small island connected by a bridge to the south of Hong Kong Island near the Aberdeen fish market.

The sale is the government’s largest lump-sum sale, exceeding the HK$11.8 billion fetched in 1997 for a Siu Sai Wan site that is now home of Island Resort.

The record price undermines the assertion by Chief Executive Leung Chun-ying that a November 2016 policy to raise the stamp duty for individual second-home buyers to 15 per cent had “achieved its goal” in deterring speculative buyers.

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