Date
20 September 2017
Developers prefer to buy luxury development sites in which less risk is involved, market watchers say. Photo: HKEJ
Developers prefer to buy luxury development sites in which less risk is involved, market watchers say. Photo: HKEJ

Auction hits high and low of HK property market

A residential site on Hong Kong Island fetched the fifth highest auction price on record while a plot in the New Territories was sold at a 12-year low Wednesday.

The contrasting results led analysts to predict a more polarized property market.

Developers are keen to snap up luxury development sites in which there is less risk involved, Cable News reported Wednesday, citing registered surveyor Cheung Kiu-cho.

Emperor International Holdings Ltd. (00163.HK) paid HK$2.7 billion (US$349.35 million) for a piece of land in the upscale Shouson Hill Road West area, beating 15 other developers, the Lands Department said. The price works out to almost HK$31,000 per square foot.

The developer plans to build 20 to 30 low-density luxury houses on the site by 2017.

Donald Cheung, executive director of Emperor International, said the site is a rare find and has solid growth potential. It sits in an area traditionally reserved for luxury developments and is served by convenient transport, Headline Daily reported Thursday.

In the New Territories auction, Chun Wo Development Holdings Ltd. (00711.HK) bought a site in Tuen Mun for HK$232.8 million, a 12-year low for the district. The price translates to an average of HK$1,530 per sq. ft. The developer will build no fewer than 140 residential units on the site.

In addition, it is obligated to build elderly care centers, according to a government announcement.

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EJ Insight reporter

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