Charles Chan Chiu-kwok, Managing Director of Savills Valuation and Professional Services (Greater China), said the Tseung Kwan O Area 66B residential site just triggered for auction will fetch up to HK$2.6 billion, or 30% above the opening bid.
Charles Chan Chiu-kwok, Managing Director of Savills Valuation and Professional Services (Greater China), said the Tseung Kwan O Area 66B residential site just triggered for auction will fetch up to HK$2.6 billion, or 30% above the opening bid.
Adjacent to Tseung Kwan O MTR station, the site is located between Po Yap Road, Tong Chun Street, and Lai Ngok Street, and is opposite to Bauhinia Garden. It has full sea views of the Junk Bay. Chan said it could be developed into a residential project comprising small to medium units. With an auction price of HK$2.6 billion estimated by Chan, that translates into an accommodation value of HK$3,570 per sq.ft.(psf), of which the accommodation value for residential use is around HK$3,300 psf, and that for non-residential use is around HK$6,000 psf.
The plot has a size of 132,397 sq. ft. With a plot ratio of 5.5 times, it will allow for a total gross floor area of 728,185 sq.ft., of which 661,986 sq. ft. is for residential use and 66,199 sq.ft. is for non-residential use. The triggering price for the plot is HK$2 billion, which translates into an accommodation value of around HK$2,747 psf.
Units on the subject lot are expected to be sold at HK$5,500 to $6,000 psf upon completion. Since housing supply will be most abundant in Tseung Kwan O, it is expected that the developers will not be too aggressive in bidding for the site. The auction price will be indicative to the market as the site is to be used for developing small and medium units.