Asking prices for auction plots in HK rise

The price estimates for three plots of land set for auction tomorrow have increased, primarily attributed to the healthy market.

A site in Ngau Tam Mei and the former Lingnan University site on Stubbs Road, 62 Begonia Road in Kowloon Tong are expected to yield a total of approximately HK$6 billion, with the site on Stubbs Road valued from HK$3.6 billion to HK$4.52 billion, according to surveys by The Standard.

“The plot is likely to be developed into a low-density luxury project. It should attract bids from the large developers,” said Alvin Lam Tze-pun, Director of Midland Surveyors.

Mr. Lam estimates that the 160,384 sq ft site, with a plot ratio of around 1.13 times, will sell for HK$4.52 billion, or HK$25,000 psf. This represents an increase of eight percent compared to his previous estimate.

Meanwhile, the 30,247 sq ft site on Begonia Road may reap between HK$500 million and HK$768 million, or HK$13,600 to HK$20,880 psf.

Centaline and Midland Realty increased their estimates by roughly 40 percent to HK$515 million.

The 252,743 sq ft Ngau Tam Mei site in Yuen Long is expected to fetch between HK$410 million and HK$700 million, or from HK$4,000 to HK$6,924 psf.

Midland Realty modified its estimate from HK$400 million to HK$525 million, representing a 31.25 percent increase.

With a plot ratio of 0.4 times, the site is limited to development of a low-density residential project. Houses at The Vineyard nearby are priced at approximately HK$8,400 psf.

In addition, The Beverly Hills in Tai Po, a project consisting 535 individual houses by Henderson Land, fared well after the selling price was reduced on Friday from HK$7,000 psf to HK$5,600 psf.

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