Central, Mid-Levels residential sites fetch $400m
7 July 2005
The Standard
Two land purchases in Central and Mid- Levels worth nearly HK$400 million have been made this week as demand for prime residential sites remains robust despite rising mortgage rates.
Kerry Properties agreed to buy a residential development site near the Mid-Levels escalator from Yue Tai Hing Properties and its owners, the Law family, for more than HK$200 million, or about HK$4,400 per square foot.
A spokesperson for Kerry said it plans to build a residential-commercial tower on the vacant site at the junction of 38 Shelley Street and Mosque Junction.
With a plot ratio of about 10 times, the 4,500 sqft site could yield total gross floor area of 45,000 sqft.
Analysts estimate total investment at about HK$250 million, or HK$5,500 psf, including construction and land costs. The project would fetch about HK$300 million, assuming a selling price of about HK$6,500 psf, a profit margin of about 18 percent, they said.
Flat prices in the secondary market along Shelley Street and Mosque Junction now range from HK$4,000 to HK$5,000 psf, lagging the overall Mid-Levels market, Centaline Property Agency said.
Separately, Sino Land bought Staunton House, a residential-commercial building adjacent to Central's SoHo district, for about HK$162 million. General manager for sales Mark Hahn said Sino plans to redevelop the existing building, though the details have yet to be settled.
Located at 20-24 Staunton Street, the 3,300 sqft site could generate total gross floor area of 26,500 sqft. Sino paid HK$6,113 psf for the site.
In the first half of this year, 14 land purchases worth more than HK$6 billion were made as developers resorted to private negotiations and tenders. Since a new property application list was released by the government in March, developers have failed to trigger a single public auction.
Last month, Cheung Kong (Holdings) bought a redevelopment site in Mid-Levels from gambling tycoon Stanley Ho for about HK$190 million.