Hong Kong land sale could fetch US$294 million for Kennedy Town plot expected to yield 450 flats
The first government tender of the financial year started on Friday for a plot of land in an area popular with expats
Surveyors
expect between five and 15 bids from developers, who may bid
conservatively amid high interest rates and sluggish home sales
A
plot of land on Hong Kong Island that is expected to yield about 450
flats – some with a sea view – could fetch HK$2.3 billion (US$294
million) as the first government tender process of this financial year
gets under way.
The
tender for the land, at the junction of Sai Ning Street and Victoria
Road in Kennedy Town, started on Friday, according to the Lands
Department.
The
plot should attract around five bidders and “conservative” bids of
HK$2.2 billion (US$281.5 million) to HK$2.3 billion, or HK$9,000 to
HK$9,500 per square foot, a surveyor said.
A nearby parcel sold in November for around HK$9,500 per square foot, according to a surveyor.
“It
will appeal to both end users and investors,” a surveyor said, who
expects 12 to 15 bids. “Expats will like this area as it is close to
Central and well-served by MTR, tram and road networks.”
The
key selling point is the plot’s relatively large scale on Hong Kong
Island, and the fact that some flats will enjoy a sea view, the surveyor
added.
Kennedy
Town and the general western area is a popular area for younger,
unmarried expats, the surveyor said. “They are definitely one batch of
the potential tenants after completion of the residential development,
as small to medium flat sizes are expected” the surveyor said.
However,
developers may take a wait-and-see attitude towards the first tender in
this financial year,” the surveyor said, adding that a nearby public
mortuary will also be a factor that developers consider, as some people
would not like to live near such a facility.
“Potential
developers will be concerned about the location, and the sales market,
as most likely the developer will sell the residential apartments after
completion,” the surveyor said.
The
Surveyor echoed the view that developers may bid more conservatively
than in the past because of higher financing costs amid the current high
interest rates, as well as slow sales in the primary Hong Kong property market.
The tender comes after the Hong Kong Monetary Authority (HKMA) early this month raised its key lending rate to a 15-year high, in what could be the last hike in 2023.
Looking
ahead, Citi expects “overall home prices to stay flat in 2023,
indicating around a 7 per cent home price drop during the second and
fourth quarter”, the bank said in a report this week.
(South China Morning Post)
凱施尖東銀主鋪6950萬開拍
近期陷入財困的凱施餅店，再有物業淪為銀主盤。尖沙嘴加連威老道98號新東海商業中心地下G1及G2鋪位，建築面積約1814方呎，銀主委託拍賣行於下周拍賣，開價6950萬，平均呎價3.83萬。
現時上址由凱施餅店承租，月租18萬，租期由2023年3月至2025年2月，若以開價計算，租金回報率約3.1厘。
(星島日報)
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