Chinese builders pay record USD$2.17 billion for Ap Lei Chau site
February 27, 2017 - Ap Lei Chau
Paul Chan Mo Po, the Financial Secretary has expressed the concern over the out of expected high land sale price and the potential risks of housing market.
While the Secretary for Development, Siu-Cheung Ma has reaffirmed that the present government has no intention to restrict the sources of capitals.
The 126,595 square foot (11,761 square metre) site on Lee Nam Road on Ap Lei Chau island is approved for construction of as much as 762,091 square feet of housing.
The island is connected to the south side of Hong Kong island by a bridge, and the area has seen rising interest from property developers since the opening of subway service through the South Island MTR line in December.
The oceanfront location of the site, which was formerly used as a driving school, makes it particularly appealing to developers desperate for luxury property opportunity, as the government market curbs appear to be driving investors into high end units.
A total of 14 developers bid for the site including Hong Kong heavyweights Cheung Kong Property, New World Development, Sun Hung Kai Properties and Wheelock Properties.
KWG and Logan also beat out several of their larger mainland brethren, such as Citic Pacific, China Vanke, and China Overseas Land and Investment.
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