Cheng Fung Mansion Sold for HK$257 Million through Savills by Auction

The Property, with a registered site area of about 3,900 square feet (362.32 square metres), is situated on the southern side of Fei Fung Street to the west of its junction with Sheung Fung Street in Wong Tai Sin district of Kowloon.

Currently erected on the site are two blocks of 5-storey residential building over a single level retail. The building was completed in 1971 and each block is served by one common staircase.

The Property falls within an area zoned "Residential (Group A1)" under Kowloon Planning Area No. 11 – Approved Tsz Wan Shan, Diamond Hill and San Po Kong Outline Zoning Plan No. S/K11/29 gazetted on 16 December 2016.

Mr. Charles Chan, Managing Director of Savills Valuation and Professional Services, commented that districts such as To Kwa Wan, Sham Shui Po and Quarry Bay are favoured by developers as the aged buildings in these areas offer developers a greater flexibility when deciding the scale of their acquisition plans. He expected the number of order for sale to be granted by the Lands Tribunal in 2022 will be similar to that of last year, which originated from the applications made in 2019 and 2020.

As the government plans to further lower the compulsory sale application threshold for aged buildings, Mr. Chan expected that the threshold could be lowered from 80% to 60%-70% of ownership of a building in the government's proposal to be tabled to the Legislative Council later this year. If that is realised, it will be a positive sign to the market as it will speed up the acquisition of aged buildings for urban renewal, Mr. Chan said. He expected the number of buildings to be released for auction through such a change will increase by 30% to 40%.