China’s leading developer China Overseas Land & Investment has surprised the government by paying a higher-than-expected price for purchasing a plot at Kai Tak, media reports said.
It is reported that the developer invested $550.8 million for bidding the plot 4E Site 1 measuring 59,719 sq. ft in Kai Tak. The per sq. ft. price for the plot works out to HK$13,009 and has the capability to yield up to 328,453 sq. ft in gross floor area.
Furthermore, the latest purchase for the developer marks its third wholly-owned site in Kai Tak. Plots were first offered by the government in Kai Tak in 2013.
It is reported that the market valuation of the plot has been HK$3.94 billion per sq. ft. despite a slump in land and home prices due to the outbreak of Covid-19 pandemic. The plot prices at Kai Tak staggered at HK$19,636 in May, 2019 after few developers won a site that could yield an impressive gross floor of 641,180 sq ft.
The developer has been at the forefront and has won the current bidding against a swath of developers such as CK Asset, Sun Hung Kai Properties, Kowloon Development, K Wah International, Great Eagle, Wing Tai Properties, Empire, Far East Consortium International, and few others.
China Overseas Land & Investment said that it was positive about Hong Kong’s development and it will establish a luxury residential project worth HK$6.5 billion on the site.
The global property market has been volatile due to the pandemic. Some property market has shown signs of a rebound and some are still scrambling for profits.