Hong Kong sells third housing plot on disused airport runway at 12.7 per cent discount, in another sign of property market woes
- Kai Tak Area 4B Site 2 sold to a unit of China Overseas Land & Investment for HK$8.03 billion, or HK$13,523 per square foot
- The latest price tag is a 12.7 per cent discount to the previous plot sold in November, in another clear sign that Hong Kong’s property market has cooled
Hong Kong’s government, which relies on land sales for a substantial part of its revenue, has sold its final residential plot for the year at a 12.7 per cent discount to market valuation, in a further sign of the city’s cooling property market.
Kai Tak Area 4B Site 2, the third plot for sale on the former airport’s disused runway, sold for HK$8.03 billion (US$1.03 billion) to a unit of China Overseas Land & Investment, according to an announcement by the Lands Department. Six bids were submitted for the tender, which closed last Friday.
Market observers saw the low price as a sign developers are worried that Hong Kong’s stalling housing market will dip further in 2019.
“The price is a bit disappointing,” said James Cheung, executive director of Centaline Surveyors, who had previously valued the parcel of land at HK$15,500 per square foot. “Developers are not as aggressive as they were earlier in the year because the market has softened.”