Nan Fung Group and Wing Tai Properties won the auction for Ex-Ko Shan Road Customs & Excise Service Married Quarters, 7 Ko Shan Road, Hung Hom for HK$1.525 billion.
Nan Fung Group and Wing Tai Properties won the auction for Ex-Ko Shan Road Customs & Excise Service Married Quarters, 7 Ko Shan Road, Hung Hom for HK$1.525 billion.
The trigger price for the land is HK$900 million and the first bidder came from Sino Land. The asking price ambience was upbeat in the beginning and while the price was placed at HK$1.28 billion, the pace has slightly slowed down. Then after over 40 bids, the land was sold finally to Nan Fung Group and Wing Tai Properties.
Spanning an area of 20,462 sq ft and is transacted at 59 per cent higher than the trigger price, the accommodation value of the site is HK$9,934 per sq ft, which is higher than market expectation. It is expected that the site will be developed into a 30-storey residential building. On the basis of maximum plot ratio of 7.5, the maximum gross floor area is 153,516 sq ft. The estimated selling price of completed development is forecasted to be around HK$14,000 and HK$15,000 per sq ft.
Charles Chan, Managing Director of Savills Valuation and Professional Services (Greater China) said the price is higher than expectation, reflecting positive views from developers towards property market in Hong Kong. As land in urban areas is insufficient and the Government does not have a long-term plan for urban land supply, together with the pressure from heritage preservation groups, the land in urban areas becomes precious, leading to its surging price.