Kerry Properties' bid of over HKD 4.308 billion for a residential site in Fo Tan Haifung Street outbid nine other developer consortia earlier this month, marking a price 38% higher than the market's upper valuation and setting a new record high for condominium land at HKD 20,702 per square foot, surpassing the market estimate by 38%. The Land Registry has publicly disclosed the bids of the unsuccessful bidders, ranging from HKD 2.2233 billion to HKD 3.225 billion, with average land prices per square foot from HKD 10,702 to HKD 15,524. The second-highest bid of HKD 3.225 billion was HKD 108.3 million lower than the winning bid, representing a differential of approximately 25.1%. The residential site, with a site area of approximately 55,600 square feet, is expected to provide around 250 residential units. It also includes social welfare facilities, such as a senior neighbors center and a mental health community center, which are excluded from the total buildable area.
The high bid for the site, with its prime location near the luxury residential complex Tien Chong, has set a significant benchmark in the local real estate market. The substantial price difference between the winning and the second-highest bids highlights the fierce competition among developers for high-end residential and land parcels in Hong Kong. This market trend reflects both the developers' confidence in the project's potential and the high demand for luxury properties in the region.
The stipulated conditions for the land sale, including the development of social welfare facilities, underscore the government's emphasis on balancing development with community amenities. The high land price is likely to reflect both the site's prime location and the anticipated high value of the properties to be built. As the real estate market continues to evolve, such high-end projects are expected to play a crucial role in shaping the future of residential development in the Kowloon area.