A government site in Kai Tak has been awarded to a consortium formed by Wheelock Properties, New World Development (0017), Henderson Land (0012) and Empire Development Hong Kong for HK$8.33 billion, which was transacted at the low-end of surveyors' estimation.
The 104,000-square-foot site on the former airport's runway was sold at HK$14,502 per square foot in terms of gross floor area. It has a maximum gross floor area of around 575,000 sq ft, the Lands Department said.
The site on the waterfront land, which is designated for private residential purposes, is one of the nine sites in Kai Tak on the government's 2018-19 land sales program. The program comprises 15 plots capable of providing about 15,000 flats
The residential project will complement the development of East Kowloon business district with the opening of Sha Tin to Central Link, a Wheelock Properties spokesperson said.
CK Asset (1113), China Overseas Land & Investment (0688), K Wah International (0173) and Sino Land (0083), as well as Sun Hung Kai Properties (0016) were among other major developers who made bids for the site.
In May, Sun Hung Kai Properties (0016) paid HK$25 billion for a residential site in Kai Tak, which translates to a per-square-foot price of about HK$17,776. The latest transaction represented a 20 percent price drop in six months.
China's HNA has purchased sites at aggressive prices in Kai Tak over the past few years. It has bought four sites but sold three as it is facing liquidity risks.
In March, Wheelock Properties bought the residential site in Kai Tak from the indebted Chinese conglomerate for HK$6.36 billion, or around HK$15,000 per sq ft. In February, HNA sold two land parcels to Henderson Land for HK$16 billion.
Wheelock has bought a land parcel in Kai Tak for HK$2.5 billion in 2014, which is currently the Oasis Kai Tak apartments.
Another government site in Kai Tak, that some of surveyors have lowered the valuations on amid a bearish property market, will go up for tender on Friday,.
Developers have adopted conservative attitude on the latest bid as the plot sold at the lower end of market estimation, Centaline Surveyors director James Cheung King-tat said.
After the tender results, Centaline Surveyors lowered the estimated price of the land parcel at Kai Tak to be sold from HK$9.51 billion to HK$8.61 billion or HK$14,500 per sq ft, 9 percent lower than the previous estimation.
The 9,800-sq-ft residential site has a maximum gross floor area of around 600,000 sq ft. Tenders will close on December 21.