Real-estate developer Great Eagle Holdings (00041.HK) has won a site in Pak Shek Kok in Hong Kong’s Tai Po district for HK$2.41 billion (US$311 million), in a deal that appears to be a good bargain.
The purchase price translates to HK$3,300 per square feet, 20 percent lower than what had been expected by the market and 55 percent less than the highest unit price in the same area, the Hong Kong Economic Journal noted Thursday.
The bid outcome, which some observers said marked a record low price in the area in recent times, has come as a shock to property owners in the area. Home owners have now started cutting their asking rents or selling prices, the report said.
Golden Eagle, meanwhile, said in a statement that the deal marks the re-entry of the firm into the Hong Kong residential development market. The site, which commands unobstructed sea view, has been earmarked for a luxury housing project.
The developer plans to build 500 to 700 high-end units with total investment of about HK$7 billion.
Golden Eagle had earlier, in March, withdrawn from a tender for another nearby site in the Tai Po district. The company has rarely participated in any land bids in the recent past, observers pointed out.
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