Kerry Properties Secures Ho Man Tin Luxury Site at HK$4.3 Billion, 25% Above Second Bid
SingTao · 2 SOURCESabout 3 hours ago2 MIN
Summary
Kerry Properties clinched a prime residential site on Fat Kwong Street in Ho Man Tin last month, submitting the highest bid among ten competing consortia. The Lands Department officially published the losing bid figures on Friday, showing the winning offer of over HK$4.308 billion exceeded the second-place bid by approximately 25%, or HK$1.083 billion. The transaction established a five-year benchmark for Hong Kong residential land premiums.
Key Points
- Kerry Properties won the tender with a bid exceeding HK$4.308 billion, translating to approximately HK$20,700 per square foot of gross floor area
- The second-highest bid came in at HK$3.225 billion, representing a HK$10.83 billion difference from the winning price, with a per-square-foot rate of HK$10,702
- The nine rejected bids ranged from HK$2.2233 billion to HK$3.225 billion, corresponding to unit prices between HK$10,702 and HK$15,524 per square foot
- The site, located near the Upper Prince Place luxury development, covers approximately 55,651 square feet with a buildable gross floor area of about 207,749 square feet
- The development is planned to deliver around 250 residential units, while the successful bidder must also construct an elderly neighbourhood centre branch and a mental health comprehensive community centre branch
Why It Matters
The significant price premium paid by Kerry Properties signals strong developer confidence in the Ho Man Tin luxury residential market, despite broader market uncertainties. The required social welfare facilities underscore how large-scale private developments in Hong Kong increasingly incorporate public service obligations that add to construction costs but may limit profit margins.
The significant price premium paid by Kerry Properties signals strong developer confidence in the Ho Man Tin luxury residential market, despite broader market uncertainties. The required social welfare facilities underscore how large-scale private developments in Hong Kong increasingly incorporate public service obligations that add to construction costs but may limit profit margins.