Hong Kong residential plot fetches US$230 million as Chinese developer outbids city rivals

Hong Kong-listed mainland Chinese developer China Overseas Land & Investment won a bid for a 3,132-square-metre (33,712 sq ft) residential plot in Kowloon East, beating some of the city’s largest developers with a higher-than-expected tender.The state-backed developer beat eight rivals to secure a 50-year grant for the parcel in Ngau Tau Kok with its bid of HK$1.8 billion (US$230 million), according to a statement from the Lands Department on Tuesday. The site is expected to yield 470 flats.The plot on Choi Ha Road, close to the Kowloon Bay MTR station and the private housing estate Amoy Gardens, was valued at between HK$1.3 billion and HK$1.5 billion, equivalent to around HK$4,400 to HK$5,100 per square foot of accommodation value, according to CBRE. Accommodation value is the value of a piece of land divided by the gross floor area of flats permitted to be built on the land.“The transaction price for the Choi Ha Road site was slightly higher than expected, especially compared with the Jordan Valley site,” said Cyrus Fong, executive director and head of valuation and advisory for Greater China at Knight Frank, referring to a site in the Kowloon area that was sold by tender last month.13:00How Hong Kong's housing market became among the world’s most unaffordableHow Hong Kong's housing market became among the world’s most unaffordableThe nine bids for the Ngau Tau Kok site were a positive response as it reflected the market’s strong confidence in acquiring quality urban sites, he said, adding that the developer would focus on small and medium-sized units.The other bidders were Henderson Land Development, CK Asset Holdings, Sun Hung Kai Properties, K. Wah, Kerry Properties, Wheelock Properties and Keen Point, while Sino Land and Great Eagle Holdings submitted a joint offer, the Lands Department said.