CK Asset beats 15 rivals with US$91.8 million bid for Yuen Long plot
- The land at the junction of Lau Yip Street and Chung Yip Road can yield a gross floor area of 78,575 sq ft, Lands Department says
- Hong Kong tycoon Victor Li Tzar-kuoi’s company plans to build low-rise villas
CK Asset paid 14 per cent more than the top end of market estimates for the plot, said James Cheung King-tat, a surveyor at Centaline Surveyors.
“Developers are bullish on the long-term outlook of the market,” he said. “A combined 16 bids for the land showed that competition would result in a price higher than market expectations.”
Other bidders for the land parcel included China Land Resources Development, Cifi Property and Grand Harvest (HK) Development.
Grace Woo Chia-ching, executive director of CK Asset, said in a statement that the developer would build low-rise luxury villas on the land.
Cheung said he expects CK Asset to price the villas between HK$15,000 and HK$16,000 per square foot.
Bidding for land in Hong Kong is expected to be fierce in the July to September quarter, as the government plans to offer only two parcels for public tender in the period, which can only provide 200 flats in an undersupplied housing market.
Aside from the Yuen Long parcel, the other plot to be offered for tender is in Kowloon Tong.
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The 200 flats from the two tenders represent only 4 per cent of the total supply of 5,400 units targeted in the quarter, and is less than the average number of flats in one building block within the Kingswood Villas housing estate in Tin Shui Wai.
The gauge of lived-in homes compiled by Centaline Property Agency rose for the third consecutive week to hit 191.3, according to data released on Friday. That is marginally higher than the 190.48 reached in June 2019.
