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November 27, 2019

A consortium of developers including China Overseas bought former runway site

A consortium comprises China Overseas Land & Investment, Henderson Land Development, K. Wah International Holdings and Wharf Development together paid HK$15.95 billion for Area 4A Site 2 at the former Kai Tak airfield, announced by the Lands Department. The price of the winning bid translates to HK$13,238 per sq ft, 26.8% cheaper on a per sq ft basis than the adjoining, oceanfront Area 4C Site 1 that sold in June for HK$12.9 billion. The plot can yield 1.2 million sq ft (111,483 sqm) in gross floor area, where an estimated 1,500 flats can be built.
     “The winning price is lower than expected, which means developers are relatively pessimistic about market prospects, fearing the market sentiment and vacancy tax will affect profits, though it can be a large project with sea view,” said Thomas Lam, Executive Director at Knight Frank. “The price is indicative of the trend in land prices. Developers will become more cautious and selective in land buying.”

(Source:  Knight Frank)