Hong Kong apartment developers scramble for Kai Tak’s most recent residential land plots as Real estate share prices rise in HK.
It is estimated that Hong Kong apartment developers submitted 7 bids for one of the largest residential plots available in Hong Kong. In fact, by the end of April, home transactions had risen by 52.8%. This is a clear indication that Hong Kong apartment prices are on the rise.
This in-demand residential plot is situated in Kai Tak. It is about 59,566 square meters (641,169 square feet). The plot retails at a price of $1.47 billion US dollars( HK$11.5 Billion). Each of its square meters has a price of HK$ 18,000. These new prices come after the Sun Hung Kai properties accumulated HK$ 25.16 billion, representing HK$17,776 for every square meter.
Currently, home prices have been on the rise. This rise in home prices was confirmed by Vincent Cheung, managing director at Vincorn Consulting and Appraisals. The increasing home prices have prompted developers to go for Hong Kong apartment plots available in Kai Tak.
Hong Kong has a scarcity of land properties. Developers purchase plots either from subway operator MTR or government. These developers come with scrumptious bids with an intent of luring plot owners into selling. Kai Tak is located near Victoria Harbour. Victoria Harbour’s view has attracted developers into this place. In fact, they are always in competition to raise their bids in order to buy the land plots there.
After the price correction in the Housing market, bids have come back in full force. The corrections in the housing market were inspired by the US Federal Reserve. That led to property share prices shooting up. As a result of Carrie Lam Cheng Yuet -Ngor was faced with a firm policy challenge.
There was a rise of 0.4% in the home price index. The rise was experienced in 12 weeks consecutively. Currently, the home price index is at 183.923. This rise is closer to that one experienced in August which stood at 188.64. April saw the sale of 9,911 units for a record total of HK$ 70.1 Billion. A rise of 52.8%.
The last week’s revision of home prices in Hong Kong confirmed a rise of 8%-10% terming last Novembers forecast false. Developers had anticipated a decrease of 15% on home prices. The decrease was expected to go on for 12-18 months.
Just to prove how vibrant the property market has become, at least 1,100 newly constructed apartments will be on sale this Saturday. Developers are expected to take advantage of the largest weekend launch in HK to provide housing for Hong Kong apartment buyers.
Some of the Kai Tak’s tenders that attracted bids from developers include Imperium Group’s New World Development, Henderson Land Development, China Overseas Land and Investment, Chinachem Group, Wheelock Properties, K Wah International, Sun Hung Kai Properties and CK Asset Holdings.
This much sought for property in Kai Tak comes third after Henderson Wheelock consortium that attracted accumulated a total of HK$8.98 billion. This site is capable of providing a 722,060 square feet floor area, hence becoming the biggest one plot in terms of area. No wonder developers are really attracted to it.