CITIC Pacific Properties snapped up a residential site in Ma On Shan for HK$1.47 billion (US$189.6 million), beating 18 other bidders in a public auction.
The winning bid works out to HK$6,502 per square foot, 8.3 percent above market estimates.
It’s the first development site in nearly 17 years for the property arm of Chinese conglomerate CITIC Ltd. (00267.HK), the Hong Kong Economic Journal reported Thursday
The selling price is a 53 percent increase in land cost per square foot, a new record for the district. In March last year, the price was HK$4,241 psf.
Surveyors expect each residential unit to cost about HK$18,000 to HK$20,000 per square foot.
Some home sellers in nearby developments immediately raised their asking prices by about HK$300,000.
Meanwhile, a commercial site in East Kowloon, went for HK$3.04 billion, or HK$6,199 per square foot, to a consortium led by Billion Development and Project Management Ltd.
The group includes Sino Land Co. Ltd. (00083.HK) and CSI Properties Ltd. (00497.HK), each of which holds a 30 percent interest in the project.
The consortium will invest HK$4.5 billion to HK$5 billion to develop the site which adjoins other properties it owns.
Translation by Vey Wong
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