New World Development wins commercial site in Cheung Sha Wan for HK$4.03bn

Hong Kong developer New World Development beat out seven developers with a HK$4.03 billion (US$52 million) bid to win its second plot in Cheung Sha Wan, bringing its investment in the area to HK$11.8 billion in less than three months.

The Hong Kong Lands Department said on Wednesday it awarded the tender for a commercial site at Lai Chi Kok Road near Cheung Shun Street to Good Sense Development, whose parent is New World Development.

“The price is reasonable. We have seen sales of commercial properties in the area become active again recently,” said Vincent Cheung Kiu-cho, deputy managing director for Asia valuation and advisory services at Colliers International.

The price tag of the 44,897 square feet site, which will yield a total gross floor area of 538,760 sq ft, represents HK$7,478 per sq ft.

The successful tender brings New World Development’s total investments in Cheung Sha Wan to HK$11.8 billion in less than three months.

In February, New World Development secured another business site at King Lam Street, Cheung Sha Wan, through government tender for HK$7.79 billion, or HK$7,808 per sq ft. Both sites are close to the MTR’s Lai Chi Kok station.