Hong Kong will sell a residential site in the Kowloon Peninsula, adjacent to the land parcel sold for a record price last month.
According to the Lands Department, the auction for a land parcel on Ede Road in the Kowloon Tong district was triggered by a property developer who committed to bid at least HK$1.05 billion ($135 million). It added that the site has a total buildable area of 8,424 sq m.
Property prices in Hong Kong have surpassed estimates in both land auctions since the Hong Kong government announced its efforts to curb property prices last month. Both Singapore and Hong Kong implemented anti-speculative measures, underscoring the asset bubble risk in Asia as record-low interest rates in the US and the economic recovery in the region spurs demand.
On August 31, Malaysian-based developer Kerry Properties Ltd. paid a whopping HK$1.29 billion for a 77,469 sq ft adjacent site. This translates to around HK$16,587 psf, making it a record price for a land site in the Kowloon Peninsula, said property broker Midland Holdings Ltd.
The auction for the private residential site is expected to take place on October 12.