Macau Developer Abandons Hong Kong Urban Renewal Project, Lists Site for HK$1.2 Billion
SCMP · 1 SOURCESabout 3 hours ago2 MIN
Summary
A Macau developer has walked away from its first major Hong Kong urban renewal project, putting a North Point site on the market for HK$1.2 billion after years of acquisitions revealed the economics of redevelopment were simply unworkable.
Key Points
- A consortium led by Macau developer Excellent Group is seeking buyers for a 7,680 sq ft site at 77-87 Marble Road in North Point
- The asking price of HK$1.2 billion (US$153 million) merely "covers the cost" after the consortium spent over HK$800 million acquiring units
- The consortium obtained a compulsory-sale order in July 2025 and won the site at the HK$600 million reserve price with no competing bidders
- Lo Shing-chung, founder of Excellent Group, said initial plans for housing would have resulted in losses of 20 to 30 percent due to excessive costs
- The three-block property is 61 years old, and financing costs accumulated over years of acquisition added further strain
- Cushman & Wakefield is marketing the site for residential, commercial, hotel or student accommodation redevelopment
Why It Matters
The sale offers a rare window into the challenges facing private developers in Hong Kong's urban renewal drive, where lengthy acquisition periods, financing costs and uncertain returns can undermine projects even as the residential market shows signs of recovery. The transaction may influence how other developers approach similar compulsory sale projects amid high land costs and construction expenses.
The sale offers a rare window into the challenges facing private developers in Hong Kong's urban renewal drive, where lengthy acquisition periods, financing costs and uncertain returns can undermine projects even as the residential market shows signs of recovery. The transaction may influence how other developers approach similar compulsory sale projects amid high land costs and construction expenses.