MTR Corp, a Hong Kong subway operator, has started a tendering procedure for a piece of residential land near the company’s Wong Chuk Hang station. Now that the process has begun, other property companies are expecting higher prices from several property sales in November and December.
The MTR had issued invitations to property developers who wish to get involved in the development of the residential property located in the southwestern part of the subway station, which is in the southern area of Hong Kong Island.
The MTR plan is to build two towers, with a combined total of 600 housing units. All these are slated for completion by 2023. All the submissions were to be offered by 2PM on November 2, 2017.
A senior expert on Hong Kong housing has confirmed the potential interest of up to 20 property developers for the area. The plot of land has been expected to receive bids ranging from HK$8.8 billion up to HK$10.3 billion. Those translate to $1.14 billion to $2.69 billion in US dollars.
The total size of the plot of land is 492,991 square feet. These prices mean that the bids will range from HK$18,000 to HK$21,000 per square foot. That’s US$2,306 to US$2,690 per square foot.
While interest on the MTR plot of land is growing, other companies are also taking advantage of the Hong Kong property market. Sun Hung Kai Properties is offering Victoria Harbour, which is a waterfront luxury residential project located in the North Point district of Hong Kong Island.
SKRP plans to offer no more than 100 housing units using a phased sale process designed to optimize their exposure to the rising property prices in the city. The developer has not publicized the selling prices of the units, though a high ranking executive in the firm has expressed hopes of fetching record prices for Hong Kong Island apartments.
The current home price record for Hong Kong is at HK$521 million, with price per square foot going for HK$105,000. This was the record set by a unit located at 39 Conduit Road in the Mid-Levels area of the island. The price for the unit was not just the highest in Hong Kong, but also for the whole of Asia.
Meanwhile, a new housing project has been launched by Cheung Kong Asset Holdings. Located in the Sheung Wan area, this involves the sale of up to 60 housing units. Also, Far East Consortium International will soon launch its Astoria Crest housing project in the Sham Shui Po area near the end of the year.
The record-setting unit in 39 Conduit Road measures a total of 4.971 square feet, and the area includes 3 parking areas.
Meanwhile, Victoria Harbour consists of a 670-room hotel along with 355 apartment units. Most of these flats have 3 or 4 bedrooms with a total area ranging from 1,200 to 1,600 square feet. A few are studio flats that measure only 300 square feet, while the largest units are 2,400 square feet.