Waterfront residential site in former industrial area of Cheung Sha Wan sells for record HK$17.28b

A waterfront site in the former industrial area of Cheung Sha Wan was sold to a consortium of five companies from Hong Kong and the mainland for HK$17.28 billion (US$2.21 billion) on Wednesday, making it the city’s most expensive residential plot.

The transaction broke the previous record for a government land sale set in February when another waterfront residential site in Ap Lei Chau was sold to a joint venture between Logan Property and KWG Property for HK$16.8 billion.

The price for the site, off Hing Wah Street West and near a public housing estate, came in at the high end of the market’s expectation of between HK$14.8 billion to HK$17.8 billion.

With a total gross floor area of 986,789 square feet, which translates to HK$17,500 per square foot, the developers could potentially supply more than 1,200 housing units.

Lands Department awarded the site to Sky Asia Properties, which is owned by a consortium comprising Sino Land, Shimao Property Holdings, Wheelock Properties, K Wah International and SEA Holdings. The consortium beat 10 other developers to secure the plot.

“The winning bid by the consortium of five companies indicates that developers themselves want to reduce their investment risk at a time when Hong Kong land prices show no sign of falling,” said Victor Lai Kin-fai, chief executive of Centaline Professionals.