A residential site in Stanley has been sold for HK$2.81 billion (US$362,000), 27 percent below the consensus estimate.
K&K Property Holdings offered HK$12,435 per square foot at a government tender, beating 11 other developers including Cheung Kong Property (01113.HK), Sun Hung Kai Properties (00016.HK), Sino Land (00083.HK), Wheelock (00020.HK), KWah International (00173.HK), Henderson Land (00012.HK), Regal Hotels International (00078.HK) and CITIC Pacific (00267.HK).
The 272,329 sq. ft. site in Bluff Head had been expected to fetch between HK$3.8 billion and HK$5.43 billion or HK$17,000 to HK$24,000 psf.
The winning bid compares with HK$30,900 psf. for a site in Shouson Hill Road West won by a consortium led by Emperor International Holdings Ltd. (00163.HK) in May 2014.
In April 2002, a site in Caper Road in Chung Hom Kok near Stanley went to Tai Cheung Holdings Ltd. (00088.HK) for HK$3,300 psf.
The Bluff Head plot can be developed into 183 flats with a gross floor area of 226,000 sq. ft.
K&K executive director Kino Law Kin-yat said the company will invest HK$6 billion to developed a luxury project on the site.
The tender results reflect concern over market conditions and high construction costs, surveyors said.
[Chinese version 中文版]
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