Asking prices for auction plots in HK rise

11 May 2011

The price estimates for three plots of land set for auction tomorrow have increased, primarily attributed to the healthy market.

A site in Ngau Tam Mei and the former Lingnan University site on Stubbs Road, 62 Begonia Road in Kowloon Tong are expected to yield a total of approximately HK$6 billion, with the site on Stubbs Road valued from HK$3.6 billion to HK$4.52 billion, according to surveys by The Standard.

“The plot is likely to be developed into a low-density luxury project. It should attract bids from the large developers,” said Alvin Lam Tze-pun, Director of Midland Surveyors.

Mr. Lam estimates that the 160,384 sq ft site, with a plot ratio of around 1.13 times, will sell for HK$4.52 billion, or HK$25,000 psf. This represents an increase of eight percent compared to his previous estimate.

Meanwhile, the 30,247 sq ft site on Begonia Road may reap between HK$500 million and HK$768 million, or HK$13,600 to HK$20,880 psf.

Centaline and Midland Realty increased their estimates by roughly 40 percent to HK$515 million.

The 252,743 sq ft Ngau Tam Mei site in Yuen Long is expected to fetch between HK$410 million and HK$700 million, or from HK$4,000 to HK$6,924 psf.

Midland Realty modified its estimate from HK$400 million to HK$525 million, representing a 31.25 percent increase.

With a plot ratio of 0.4 times, the site is limited to development of a low-density residential project. Houses at The Vineyard nearby are priced at approximately HK$8,400 psf.

In addition, The Beverly Hills in Tai Po, a project consisting 535 individual houses by Henderson Land, fared well after the selling price was reduced on Friday from HK$7,000 psf to HK$5,600 psf.

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