First seafront commercial plot of land on Kai Tak runway sells for record HK$11.1 billion
- Hong Kong developer Goldin Financial Holdings beats city’s biggest firms to win tender
- Developer is betting on development of Kowloon East, says consultancy Knight Frank
The first seafront commercial plot of land on the runway of Hong Kong’s former airport, Kai Tak, has sold for a record HK$11.1 billion (US$1.41 billion), the city’s Lands Department said on Wednesday.
Hong Kong developer Goldin Financial Holdings shrugged off the turmoil of an escalating trade war to win the tender for Kai Tak 4C Site 4, the second commercial plot on the runway to be offered for sale. At HK$12,888 per square foot, the sale was broadly in line with a forecast of HK$13,000 per square foot by market observers.
Goldin Financial, which has bought a residential site on the runway next to the plot it won on Wednesday, said it will build a high-end hotel and offices, and that its total investment could amount to HK$18 billion.
“They were quite aware of the negative news as they submitted their bid, after the escalation of the trade war. The high price shows their confidence,” said Vincent Cheung, managing director of property consultancy Vincorn Consulting and Appraisal.
The last commercial plot successfully sold at Kai Tak – the second at the site – went for HK$12,863 per square foot through tender in May 2017.
