New World win third business site in Cheung Sha Wan within six months, this time or for HK$2.97b
Other bidders included Sino Land, Sun Hung Kai, Cheung Kong Property, and Wheelock, but bidding overall was dominated by Hong Kong developers
New World Development has beaten eight other competitors to win its third business – for either office or retail use – site in Cheung Sha Wan, raising its investment in the area to nearly HK$15 billion (US$1.92 billion) in the past six months.
The Lands Department awarded the site at the junction of Wing Hong Street, Yu Chau West Street and Wing Ming Street in Kowloon, to Bonson Holdings, a wholly subsidiary of New World Development, for HK$2.97 billion, at the top-end of market expectations.
The high price indicates local developers remain upbeat about the market outlook
The price represents HK$7,995 per square foot, which is at the higher end of market forecast which ranged from HK$2.6 billion to HK$3 billion, or HK$7,000 to HK$8,000 per sq ft.
“Three sites bought by the same developer indicates the group’s confidence in the district,” said Victor Lai, chief executive of Centaline Professionals.
The other bidders included Sino Land, Sun Hung Kai Properties, Cheung Kong Property Holdings, and Wheelock Properties, but bidding overall was dominated by Hong Kong developers, on account of the rigid controls that are making it more difficult for capital to flow out of China.
“The high price indicates local developers remain upbeat about the market outlook,” said Alvin Lam, a director at Midland Surveyors.
