Three sites in Hong Kong offered by the government for land auction fetched a staggering price of HK$5.7 billion, above analyst estimates, according to The Standard.
This marks the developers’ confidence that property curbs have not softened demand for luxury homes.
The 158,231-sq-ft site of former Lingnan University on Stubbs Road has been sold to Sun Hung Kai Properties for HK$4.49 billion. This translates to around HK$24,829 per buildable sq ft, making it the third highest selling price ever paid in the city.
With 33 bids coming from five bidders, the competitive bid was finished in only 11 minutes.
Victor Lui Ting, Executive Director at Sun Hung Kai Real Estate Agency, said the property developer plans to invest HK$8 billion on the site.
Out of the three sites, the Yuen Long site surprisingly received the most aggressive bids. The bid was completed after 20 minutes, with a total of 81 bids from 12 bidders.
The Ngau Tam Mei plot has been sold to Cheung Kong Holdings for HK$662 million, with a psf price of HK$6,548, making it the New Territories’ fifth highest.
“It’s very rare to have a site where you can have low density development,” said Grace Woo Chia-ching, Executive Director of Cheung Kong Holdings.
Meanwhile, bidding for the Kowloon Tong plot was the most modest. The 30,247-sq-ft plot at 62 Begonia Road close to Yau Yat Chuen was snapped up by China Overseas Lands for HK$578 million, or HK$15,715 psf, which is the third highest average for Kowloon.
The price of the site was previously estimated to range between HK$406 million and HK$768 million.
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