Sun Hung Kai Properties (SHKP) has outbid and won against local developers in the tender for the New Kowloon Inland site at Hong Kong's former Kai Tak airport site, making it Hong Kong's most expensive residential site in history, with a sale price of HK$25.16 billion (USD$3.2 billion).

The unsuccessful tenderers, outbid by SKHP were:

• City Champion Investments Limited (CK Asset Holdings Limited)
• Juliyam Limited (Henderson Land Development Company Limited)
• Sky Base Properties Limited (Sino Land Company Limited, Kerry Properties Limited, K. Wah International Holdings Limited and Lifestyle International Holdings Limited)
• Voyage Mile Limited (Wheelock Properties Limited, Chime Corporation Limited, New World Development Company Limited and China Overseas Land & Investment Limited)

New Kowloon Inland Lot No. 6568 has a site area of approximately 16,556sq.m and has been designated for non-industrial use. The sites minimum gross floor area is 78,897sq.m. and the maximum is 131,495sq.m. 

Since the sale, Colliers International has provided some insight into the current landscape of Hong Kong's property market, and in particular the nature of the buying and selling of developmental land to local developers. Colliers have indicated that the small number of bids on the site is a direct result of factors including tight capital outflow controls from China and the sheer investment size.

Letizia Garcia Casalino, Head of Residential Services, Colliers International Hong Kong told WILLIAMS MEDIA, "Indeed the news has raised a few eyebrows. This transaction shows that the property market of Hong Kong is very strong and will boost its sentiment. The mix of residential and retail is a great combination and it works well in Hong Kong."

"Potential buyers will see that the prices are not ready to cool down, however, they are ready to spend the money and get a property, perhaps in the most expensive site in history (at least for now)," she said. 

Colliers have witnessed aggressive buyers pulling out from the Hong Kong market by selling their expensive development sites back to local developers. The real estate company noted that all three residential sites sold by government tender in 2018 have been awarded to local developers. Interestingly, Colliers have suggested that local developers are being more aggressive about filling their land banks after losing market share in 2017, and expect that they will regain dominance in 2018's residential tenders. 

"We have seen a very active market this year and should expect to still see a steady increase in the coming months," Casalino concluded. 

For more information about Hong Kong's property market email Letizia Garcia Casalino of Colliers International via the contact details listed below. 

Sources: Colliers International, info.gov.hk

Similar to this:

Singapore collective residential site sales hit the market

Slow pick-up in new residential project launches for April 2018 in Singapore

Seoul's luxury housing market ranks number 1 globally