Although the mainland is expected to resume quarantine-free customs clearance next year, but the global economic outlook is unclear, Hong Kong into the interest rate hike period, the decline in property prices has not stopped, land prices are dragged down.

Market valuation of more than 10 billion yuan, the largest commercial and residential land in the Kai Tak area of MTR Sung Wong Toi Station, yesterday by the Cheung Kong sole cost of 8.703 billion yuan to beat five rivals to win, the floor price per foot only 6,138 yuan, not only lower than the market valuation of the lower limit of 8,000 yuan by more than 23%, the relevant land prices are back to 8 years ago.

The site is the now-completed OASIS KAI TAK, which was acquired by Wheelock in May 2014 at a price of $6,101 per square foot of land in Kai Tak Area 1H 3.

Cheung Kong Executive Director Ng Ka Hing said yesterday that he was very pleased to have won a large site in the new district of Kai Tak at a reasonable price.

The project is strategically located at the top of the Sung Wong Toi MTR station and will have an underground shopping street connecting the traditional areas of Kowloon City to the Kai Tak MTR station.

The Kai Tak commercial and residential site consists of three parcels of land, namely residential sites 4 and 5 (B) in Area 2A and commercial and residential site 10, covering an area of approximately 214,000 square feet with a buildable floor area of 1,418,000 square feet, and is expected to provide approximately 1,750 units.

The site, adjacent to MTR Sung Wong Toi Station, was once put up for tender as a commercial site in 2020 but the tender was eventually rejected and was subsequently converted into a commercial and residential development with a buildable floor area of approximately 1,418,000 square feet, with a size restriction of 280 square feet for residential units.

The successful bidder will be required to construct a public open space on the right side of the site and to provide a number of 24-hour public access roads within the site.

In addition, it will also be responsible for the construction of a one-storey underground shopping street, and in five designated locations on the site, it will reserve space and be responsible for the construction of connections to the underground street, MTR Sung Wong Toi Station and adjacent developments.

The industry earlier estimated that the valuation of the project is about 11.34 billion to 17.02 billion yuan, the floor price per foot is about 8,000 to 12,000 yuan, but now the winning bid is less than 10 billion yuan, so that a number of survey valuers fell down.

At the same time, this time, the floor price is only $6,138 per square foot, which is also 61.3% lower than the $15,861 per square foot of the residential land in Kai Tak Runway Area 4E Zone 2, which was first won by Cheung Kong Holdings in February last year, a significant gap of 22 months.

The director of Midland Surveyors, Mr. Lam Chi Bun, believes that the land price of this project is much lower than the market expectation, and the floor area price has been "turned back in time" to the land price level of the Kai Tak similar land in 2014.

The main reason is that although the land granted this time is located in a superior location, but there are certain restrictions on development, so that construction costs increase, the investment scale is expected to be more than 15 billion yuan, coupled with the impact of the investment climate in recent months, so that bids become more prudent.

In addition, SHKP last week also said that the sole bid for this king, but yesterday the Lands Department announced the list of other bidders, only Nan Fung, Henderson Land, Wheelock Properties, Sunrise International, K. Wah partner Sino Land and Eagle Consortium, SHKP is not on the list, the reason for this is a mystery! The news said that because of the content of the tender or other reasons did not meet the qualifications to enter the tender.