Hong Kong Sells Record-Breaking Land to Wharf, Tycoons

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.a view of Victoria Peak: Buildings are seen from Victoria Peak in Hong Kong, China, on Wednesday, Aug. 28, 2019. Hong Kong's hotel industry is struggling with a collapse in bookings after thousands of protesters shut down flights from the territory's airport in an escalation of months of clashes with police. 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.

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