2025-02-21 28Hse Editor
A consortium headed by Sino Land (0083) won the Kowloon Shing Tak Street/Ma Tau Chung Road development tender with a bid of HK$1.93 billion. This marks the first successful land sale since September amidst a year that saw six site tenders, with a combined minimum value of HK$21 billion, being withdrawn.
The successful bid comes on the heels of Sino Land's participation in a consortium that acquired a plot in Kai Tak. The Kowloon redevelopment project, which attracted six bidders and closed its bidding early, also saw interest from prominent developers such as New World Development (0017), Wheelock Properties, CK Asset (1113), and K Wah International (0173).
The winning consortium includes Sino Land (0083), China Merchants Land (0978), and Great Eagle (0041). The project's estimated accommodation value, factoring in construction costs and the gross floor area of three URA-reserved flats, stands at HK$4,694 per square foot. This figure is 19 percent below prior estimates.
Previously, the land parcel was valued between HK$2.38 billion and HK$3.11 billion, with floor area prices ranging from HK$5,740 to HK$7,500 per square foot. In contrast, last October, Sino Land and China Merchants Land secured a nearby redevelopment project for HK$2.39 billion, equating to HK$8,571 per square foot.
The completed development is expected to yield over 414,900 square feet of gross floor area, allocating more than 345,500 square feet for residential use, and is anticipated to provide around 640 homes.
Daryl Ng Win-kong, Sino Land's deputy chairman, highlighted the site's prime residential location in central Kowloon, surrounded by a strong school network and near the Sung Wong Toi and To Kwa Wan MTR stations. The company envisions creating a sustainable, high-quality development that will elevate the community's value.
Concurrently, the market eyes a tender for residential land in Cheung Sha on Lantau Island with cautious optimism. James Cheung King-tat from Centaline Surveyors has lowered the land valuation by 16 percent to HK$410 million and does not dismiss the risk of withdrawal due to the site's remote luxury housing profile and the limited appeal to buyers despite requiring a smaller investment for its 204,516 square foot area.
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