The tenders for two residential sites in Tuen Mun and Sha Tin have been awarded on 50-year land grants at a total premium of $5.073 billion the Lands Department announced today.
SHKP acquired the Sha Tin site in To Shek for HK$2.36 billion. With a maximum gross floor area of 434,000 square feet, the price per sq ft was HK$5,448, around 36 percent above the market valuation. The estimated price for the site was around HK$1.74 billion or HK$4,000 psf.
SHKP deputy managing director Victor Lui Ting said the site is suitable for developing a high-end residential project and the estimated investment will be around HK$5 billion.
The site is around 145,313 sq ft. It received a total of 11 tenders, including Cheung Kong Property (1113), Wheelock (0020) and Kowloon Development (0034) among others.
Meanwhile, Hong Kong Ferry acquired the Tuen Mun site at Castle Peak Road for HK$2.71 billion. The site has a maximum gross floor area of around 663,062 sq ft or HK$4,085 psf, about 20 percent above the market valuation. The estimated price for the Tuen Mun site was HK$2.25 billion or HK$3,400 psf.
The Tuen Mun site is around 165,764 sq ft and is near Harrow International School. It received a total of nine tenders, including developers like Cheung Kong Property, Sino Land (0083) and K Wah (0173) among others. SHKP also submitted a tender for the Tuen Mun site.
Centaline Surveyors executive director James Cheung King-tat said both sites were sold at a price higher than market expectation and it showed that developers were optimistic about prospects in the home market.
Cheung said the recent positive performance in the market has raised the confidence of the developers in bidding for the sites.
Midland Surveyors director Alvin Lam Tsz-bun believes the higher than expected price for both sites is related to the recent stability in the market. Lam said the land sales showed that developers are becoming more confident.
Two sites sold