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Land Sales Programme | August Update

Hong Kong blog CIVAS Land Sale 2108 1536x1040

Successful sale of the site at the junction of Lau Yip Street and Chung Yip Road, Yuen Long, New Territories (the Site) which is part of the July to September 2021 Land Sale Programme and is a rolled-over site from the 2020-2021 Land Sale Programme.

The details of the Site are as below:

Property Junction of Lau Yip Street and Chung Yip Road, Yuen Long, New Territories
Lot Number Lot 1677 in DD115
User Restrictions
(Conditions of Sale)
Private Residential
Zoning Residential (D) 1

(Application for planning permission for the proposed residential development and minor relaxation of plot ratio (from 0.4 to 0.48) and the building height restriction (from 9m to 9.9m) and building height restrictions with filling of land and excavation of land have been approved with conditions on 18 December 2020)
Site Area Approximately 163,699 sq. ft. (15,208 sq. m.)
Maximum GFA Approximately 78,575 sq. ft. (7,299.8 sq. m.) (as per the Conditions of Sale)
Maximum Plot Ratio 0.48
Land Premium HKD716M
(HKD9,112/sq. ft. on GFA)
Analysed Unit Gross Development Value (est) HKD16,000/sq. ft. – HKD19,000/sq. ft. on Saleable Area upon completion (Colliers’ View)
Successful Tenderer CK Asset Holdings Limited
Tender Award Date 17 August 2021

   
The Site is located within a 13 minute walking distance to Long Ping MTR station and Yuen Long MTR Station in Yuen Long, on the southern side of Shan Pui River opposite to the Yuen Long Industrial Estate. Opposite to the Site along Chung Yip road is United Court, a large-scale transitional housing project expected to be completed in 2022 jointly developed by Sun Hung Kai Properties Limited and Sheng Kung Hui Welfare Council.

Figure 1 – Location Map

Hong Kong blog CIVAS Land Sale 2108 map1 

Things to be aware of under the Conditions of Sale

  • Under the Conditions of Sale, the Site shall not be used for any purpose other than for private residential purposes.
  • The area colored pink hatched black on the lease plan of the Site (figure 2) shall not be used for any purposes other than for parking, loading and unloading spaces, landscaping area, office accommodation for watchmen or caretakers, structures for accommodating mechanical facilities, or any other purposes as may be approved by Lands Department.
  • The area colored pink stippled black on the lease plan of the Site (figure 2) shall not be used for domestic use and outdoor recreational facilities.

 

Figure 2 – Lease Plan of the Site

Hong Kong blog CIVAS Land Sale 2108 map2

Source: Lands Department

Transacted Land Premium

The Site was transacted at a premium of HKD716 million, representing an accommodation value of HKD9,112/sq. ft. on a GFA basis. This was higher than the market expectation which ranged from HKD5,500/sq. ft. to HKD8,000/sq. ft. and reflects the developer’s confidence in the residential market and locality, which in turn is expected to boost the residential price in Yuen Long in the mid-term.

 


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Hannah Jeong

Head of Valuation & Advisory Services

Valuation & Advisory Services

Hong Kong

Hannah Jeong has extensive valuation & advisory services experience over 15 years including property investment and development projects specialising in valuation, development consultancy, financial analysis and feasibility studies. Project’s geographic coverage span across Asia Pacific and Middle East, in particular Hong Kong, China and Korea. She has started her career with Colliers since 2006 and is now heading our Valuation and Advisory Services - Hong Kong Office with over 40 professionals.

Hannah has strong client coverage on major financial institutions including global real estate funds and private equity firms.

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