Kai Tak’s third-largest oceanfront plot sells for a district record HK$12.6 billion
May 09, 2019 - Kowloon Bay
Six Hong Kong developers have agreed to pay HK$12.6 billion (US$1.6 billion) for the third-largest plot of residential land on the runway of the former Kai Tak airport, forking out a record price for the prime oceanfront real estate in the area as a property bull market resumes in the world’s costliest city.
The government tender for Kai Tak Area 4C Site 2 was won by the Marble Edge Investment consortium, comprising China Overseas Land & Investment, Chinachem Group, Empire Development, Henderson Land Development, New World Development and Wheelock Properties.
An estimated HK$18 billion will be invested into the plot, with 641,168 square feet of gross floor area.
The price translates to a land cost of HK$19,636 per sq ft, which means an apartment complex built on the site will have to sell for at least HK$30,000 per sq ft, inclusive of a construction cost of between HK$5,000 and HK$7,000 per sq ft, with a 20 per cent profit margin for the developer.
That would price a 1,000 sq ft (93 sq m) flat at HK$30 million.
Ricky Wong Kwong-yiu, managing director at Wheelock Properties said the project’s total investment cost would be HK$20 billion.
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