Hongkong property developer, Wharf Holdings Ltd. teamed up with other Hong Kong property tycoons to win a premium land site in the luxurious Peak area for a record-breaking price. Buildings are seen from Victoria Peak in Hong Kong, China.
The consortium includes a Wharf subsidiary, an entity owned by Sino Land Co.’s Chairman Robert Ng, C C Land Holdings Ltd.’s Cheung Chung Kiu, Chinese Estates Holdings Ltd.’s Chan Hoi Wan and her brother-in-law Thomas Lau. It won the residential land for HK$7.25 billion ($935 million), a government statement showed late Wednesday.
The 54,541 square-foot (5,067 square-meter) site can produce a maximum of about 144,970 square feet of floor area. The bidding price translates into HK$50,011 per square foot for the prime land plot, the highest on record for a residential site sold in government tenders. The plot was previously valued by Midland IC&I Ltd. at HK$6.8 billion.
The higher-than-expected price reflects the developers’ confidence that the city’s luxury home market will rebound after the pandemic. Prices of high-end residential properties in Hong Kong fell last year as cross-border travel restrictions made mainland buyers scant.
Luxury home prices dropped 8% in 2020, more than the 1% decline in the mass market, data from Jones Lang LaSalle Inc. show.
Wharf also bought the adjacent residential site for HK$12 billion in December.
Bidders in the tender that missed out included CK Asset Holdings Ltd., Henderson Land Development Co., Sun Hung Kai Properties Ltd. and K. Wah International Holdings Ltd.