Prominent international real estate firm Savills has completed the transaction of 341-343 Tai Hang Road at a price of HK$1.24 billion. This is a rare transaction involving a large-scale residential site in Hong Kong this year.
Peter Yuen, Managing Director and Head of Investment & Sales of Savills Hong Kong, who led the deal, commented: “The original owner was the long-established local developer Sunny Enterprises. This is the second large deal that Savills Hong Kong has completed for Sunny Enterprises in two years. Sunny Enterprises purchased the site in December 1955 at a price of HK$220,000. It developed Valley Villa and has kept the luxury residential project for long-term rental income for years. Savills was commissioned for the sale of the entire land on behalf of the owner's family, and the transaction price was satisfactory. The new buyer, Peterson Group, is a renowned local developer. It will redevelop the property into low-density luxury flats for long-term investment.
Peter Yuen added that many developers will change to focus more on private markets in looking for potential land now, in view of the intense competition for government lands. Sites for luxury residential projects on Hong Kong Island are especially attractive.
With a site area of around 11,000 square feet, 341-343 Tai Hang Road has a gross floor area of around 18,000 square feet. The transaction price is HK$1.24 billion. The property provides seven apartments with one unit has been vacant already.
Savills Hong Kong completed the transaction of almost 60% of the area of Winway Building at 50 Wellington Street back in 2019. Savills Hong Kong has completed two large deals for Sunny Enterprises in the past two years.