As per reports, a subsidiary organization of China Poly Property, the well-known real estate developer, has been awarded the tender for residential development of a Yau Tong (south-east periphery of Kowloon) site encompassing 3, 689 square metres or roughly 39, 708 square feet. This was confirmed by the Hong Kong Lands Department and Poly Property is the 4th biggest realty player in China by way of sales figures last year.
The site was bought by the company for a whopping HK$3.3 billion or approximately US$420.42 million. The company has also won the right to construct close to 480 housing units. Construction is approved at the project for around 297, 100 sq. ft. which will lead to HK$9257 per square foot as the unit price as per reports. This new deal is the third major residential venture by the Poly Group in Hong Kong post its purchase of the Kai Tak project in the year 2014 and the purchase of the Tuen Mun luxury residential site back in the year 2015.
The new unit price is the lowest such unit price for Kowloon’s urban land in almost two years and the transaction prices are also nearer the forecasts between HK$3.2-4.6 billion as far as the site is concerned. There are a few challenges including fewer connectivity and transportation options near the site and its hillside placement. The neighbourhood has several subsidized and public housing ventures already and is located a little away from the MTR station without any direct connectivity to the same. Poly Property won this site after fending off top rivals like CK Asset Holdings, Sun Hung Kai Properties, Henderson Land Development, K Wah International and Wheelock Properties, New World Development and a consortium of China Overseas Land & Investment, Sino Land and Billion Development and Project Management. Even K&K Property Holdings Limited and the Jantix Group Holdings furnished bids for this plot. The finished homes at this project may be sold for around HK$20, 000 per square foot as per estimates.
