The Lands Department announced on March 23 that there will be a residential and a commercial site to be disposed of by public tender in the 2020-21 Land Sale Programme. This will be the last batch of land sales announced within the 2020-21 financial year. The details of these two sites are highlighted below:
Property 1:
| Property | Caroline Hill Road, Causeway Bay, Hong Kong |
| Lot Number | Inland Lot No. 8945 |
| Zoning | Commercial (2) |
| User | Non-industrial (excluding residential, godown and petrol filling station) |
| Site Area | 159,329 sq. ft. (14,802 sq m) |
| Maximum GFA | 1,076,400 sq. ft. (100,000 sq m) |
| Maximum Plot Ratio | 6.76 |
| General Market Expectation | HK$11.3 billion – HKD$24.7 billion (AV: HK$10,500/sq. ft. – HK$23,000/sq. ft.) |
| Tender Invitation Date | 26 March 2021 (Friday) |
| Tender Closing Date | 7 May 2021 (Friday) |
Considering the site’s large scale and prime location, IL 8945 is expected to draw substantial attention from the market. According to the Conditions of Sale, the purchaser shall only assign or dispose the lot as a whole after compliance with the conditions. The GFA for retail use shall not exceed 107,640 sq. ft. (10,000 sq m). The purchaser is also required to provide the Government Accommodations of a child care centre, a day care centre for the elderly and a district health centre with a total net operational floor area (NOFA) of 20,834.8 sq. ft. (1,935.6 sq m) which is accountable for GFA.
The purchaser is further required to provide the following items:
- Public open space of no less than 64,584 sq. ft. (6,000 sq m)
- Large area for the provision of future public roads at its own expense
- Pedestrian path and walkway
- Potential foot bridge and subway connection
There is a real opportunity for a developer or an investor to take careful consideration of this site. It has strong potential and would play a significant role in the development of the area, but thorough analysis needs to be taken of potential costs, such as:
- Preservation of trees and existing walls & pipes
- Demolition of existing structures
- Private and public car parking requirements
Given Leighton Road’s current traffic is already overloaded, the traffic review report and mitigation measures for the new development will be critical to obtain.
These specific requirements are expected to have an impact on the value of the site and should be evaluated carefully by a real estate professional.
Property 2:
| Property | Kwu Tung Area 25 |
| Lot Number | Fanling Sheung Shui Town Lot No. 279 |
| Zoning | Other Specified Uses (Commercial/Residential Development with Public Transport Interchange) |
| User | Non-industrial (excluding godown, hotel and petrol filling station purposes) |
| Site Area | 199,855 sq. ft. (18,567 sq m) |
| Maximum GFA | 1,199,131 sq. ft. (111,402 sq m) |
| Maximum Plot Ratio | 6.00 |
| General Market Expectation | HK$5.4 billion – HK$6.0 billion (AV: HKD4,503/sq. ft. – HKD5,004/sq. ft.) |
| Tender Invitation Date | 26 March 2021 (Friday) |
| Tender Closing Date | 23 April 2021 (Friday) |
Kwu Tung Area 25 falls in the middle of the Kwu Tung North New Development Area which spans a total of 447 hectares and is proposed to be developed as a “Mixed Development Node” as per the Development Bureau. The MTR Northern Link (Kwu Tung Station) is expected to be completed in 2027 and will be in close proximity to the site. According to the Conditions of Sale, the GFA for private residential use shall not exceed 999,276 sq. ft. (92,835 sq m) and the GFA for retail use shall not exceed 199,855 sq. ft. (18,567 sq m). To enhance the accessibility of the area, the purchaser is required to provide a public transport interchange of no less than 67,813 sq. ft. (6,300 sq m) which is accountable for GFA. Due to Kwu Tung’s proximity to Lok Ma Chau and Lo Wu, upon completion the development on the site will attract households and individuals who travel frequently between Mainland China and Hong Kong.