Sino Land, CSI join forces to win Yau Tong land site, adding even more appeal to former Kowloon industrial area

Hong Kong developers Sino Land and CSI Properties are teaming up to develop a 43,400 square foot MTR site in southeast Kowloon’s Yau Tong – a traditional industrial area where analysts see huge potential for future residential development. 

The winning bid was not disclosed, but the land premium paid for the site was confirmed at HK$1.515 billion (US$193 million), or HK$4,657 per square foot. Market watchers expect the selling price could have been as high as HK$20,000 per square foot. A land premium is a levy or tax, paid by a developer when a lease modification confers an increase in value.

Analysts said the new site is likely to add further impetus to the neighbourhood’s growing future residential appeal.

Thomas Lam, senior director at Knight Frank, said the potential developer could develop the site into a mid-to-high level residential flats with total investment expected to be up to HK$5 billion.

“The high land premium will definitely drive up transaction prices in Yau Tong,” added Derek Chan, head of research at Ricacorp Properties. 

Data from his company shows that in April, property transaction prices in the neighbourhood were around HK$13,170 per square foot, but a month later a unit in Yau Tong’s Canaryside area sold for HK$16,553 per square foot.