Weekend Property

Pak Shek Kok, near Tolo Harbour, attracts high-end buyers in search of a home by the sea

Thousands of high-end apartments are under construction in this desirable area and are set to come on the market soon

PUBLISHED : Friday, 11 August, 2017, 1:01pm
UPDATED : Friday, 11 August, 2017, 1:01pm

Developers are continuing to transform Pak Shek Kok, which is near Tolo Harbour, into an exclusive residential community for middle- to upper-class families.

While momentum in new home sales has somewhat slowed down in recent weeks, according to agents, it is estimated that the five residential projects under construction at Pak Shek Kok will inject more than 5,000 units to the market when they are launched in the near future.

In June, K.Wah said it might roll out the company’s Pak Shek Kok project, which will feature two 18-storey blocks and seven 19-storey blocks, later this year. Together they will provide about 1,000 flats.

Last September, the Buildings Department also granted Sun Hung Kai Properties (SHKP) permission to build 10 18- and 19-storey apartment blocks on its site at the junction of Fo Chun Road and Pok Yin Road to provide about 1,495 flats.

Billion Development, which has been more active in residential development in recent years, is estimated to have more than 2,000 units to offer from the two sites it is working on.

The company said earlier this year that the first phase of the development, located at Fo Chun Road, will comprise 673 units, including mainly three- and four-bedrooms, plus some smaller flats.

It is near the second phase, located at Chong San Road, and therefore some facilities will be shared by both complexes, the company added. Last year, Great Eagle was given a planning permission to build two four-storey low-rises and eight 14-storey mid-rises, which will comprise 500-700 units, on the site it acquired in 2014.

However, SHKP, Billion Development and Great Eagle have yet to confirm exactly when their projects will be launched for sale.

Further down the pipeline, Sino Land is set to work on a housing site it purchased last July for HK$1.62 billion, or around HK$3,932 per square foot in terms of accommodation value. The plot has a maximum buildable floor area of about 412,500 sq ft.

Sino Land believes the site will generate synergies with its existing portfolio in the area, including the Providence Bay, Providence Peak and Mayfair By The Sea I&II projects.

Between July 2016 and June this year, a total of 62 units changed hands at Providence Bay at an average price of HK$14,000 per sq ft, according to Land Registry records. Providence Peak saw 54 units sold at about HK$13,300 per sq ft on average over the same period. At Mayfair By The Sea I&II, a total of 48 units were traded at an average of about HK$20,000 per sq ft during the same period.

Last November, HKR International acquired two government sites on Lo Fai Road in Tai Po with a total site area of approximately 31,736 square metres.

The sites will be developed into a luxurious low-density residential development, a company spokesperson says. The project is a joint-venture development between HKR International and Hysan Development. In the land sales market, a new Pak Shek Kok site at the junction of Yau King Lane and Pok Yin Road was added to this year’s land sale inventory, after the government sold off six Pak Shek Kok sites since 2014. By site area, the Yau King Lane site is the largest piece earmarked for sale, covering more than 357,000 sq ft.

After the necessary land-use conversion process, from its present zoning as a government institution and community site, the land will be sold as a low- to medium-density residential site and is expected to comprise about 536,000 sq ft of gross floor area.

Last month, the Science Park unveiled an HK$800 million development plan to build an 18-storey complex to provide 500 rental units for its tenants and their employees.

The government will provide core funding of HK$560 million while the remainder will be financed by commercial loans guaranteed by the government, according to the document submitted to the Legislative Council.

In nearby Ma On Shan, last month Sino Land acquired a residential development site for HK$1.38 billion, setting a record for the area.

The site has a maximum gross floor area of about 119,000 sq ft, with accommodation value reaching HK$11,588 per sq ft, which is 80 per cent more expensive than the nearby site.