New | Hong Kong’s former Kai Tak airport site poised for record sale
Commercial plot Area 1F Site 2 at the former airport site expected to go for anywhere between HK$14.3 billion and HK$22 billion
A commercial site in what some are already calling Hong Kong’s future second core business district goes up for sale on Friday – being tipped by experts to become a new “land king”, the most-expensive land by value – at Kai Tak, the city’s former airport.
Local developers are likely to fight tooth and nail for the site, named Area 1F Site 2, which some expect to significantly push up commercial property prices in the city.
The tender will close on Friday at noon, with the Lands Department likely to announce the winner next week.
The value of the site, which will yield a total gross floor area of 1.91 million square feet, is expected to be anywhere between HK$14.3 billion (US$1.84 billion) and HK$22 billion, or HK$7,500 per sq ft to HK$12,000 per sq ft. The site is designated for office, retail or hotel development.
The prospect of mainland developers joining the fray too, could also escalate those prices further, especially given HNA Group’s aggressive purchases of four residential lots already in the area, said Vincent Cheung Kiu-cho, Colliers International’s deputy managing director for Asia valuation.