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Last Government site for Q3 2021-22 is a gem in Repulse Bay

Hong Kong blog CVAS Land Sale 2202 1536x1040

Repulse Bay’s first land sale in a decade expected to attract high price

 
As per the Government’s announcement on 29 September 2019, they will sell three sites for the third quarter of 2021-22, i.e. October to December, including two residential sites and one industrial site. The industrial site and one of the residential sites have already been sold in Fanling and Tai Po, respectively. As per the announcement on 24 December 2021, the last site to be sold in the 2021-22 Land Sale Programme is a luxury residential site located on South Bay Road, Repulse Bay.

South Bay Road, Repulse Bay (RBL 1203)

Property South Bay Road, Repulse Bay, Hong Kong
Lot Number Rural Building Lot No. 1203
Zoning Residential (Group C) 5
Site Area Approximately 21,097 sq. ft.
Maximum Gross
Floor Area (GFA)
Approximately 18,987 sq. ft.
(As per the Outline Zoning Plan)
Maximum Plot Ratio 0.9
(As per the Outline Zoning Plan)
General Market Expectation HK$1.04B to HK$1.42B
(HK$55,000/sq. ft. to HK$75,000/sq. ft.)
Tender Closing Date and Time Noon, 11 February 2022

   
The site is located along South Bay Road in Repulse Bay and an easy two-minute walk to Repulse Bay Beach. The area is considered one of the most expensive residential areas in the world and is characterised by low-rise super-luxury residential developments.

The site is zoned as “Residential (C) 5” under the Approved Shouson Hill & Repulse Bay Outline Zoning Plan No. S/H17/13. This zone is intended primarily for low-rise, low-density residential developments where commercial uses serving the residential neighbourhood may be permitted on application to the Town Planning Board. According to the Outline Zoning Plan, the maximum height of the site is four storeys and a single-storey carport, the maximum plot ratio is 0.9, and the maximum site coverage is 22.5%.

Figure 1 – Location Plan of RBL 1203

Source: Lands Department

The most comparable development nearby is 90 Repulse Bay Road, developed by Cheung Kong Property Development, completed in 2017. Transactions range from a unit rate of HK$80,000/sq. ft. to HK$93,000/sq. ft. on a saleable area within the past 3.5 years. Located to the northeast of the subject site, this indicates possible gross development values for the tendered site as they share similar views.

The general market expectation is approximately HK$1.04 billion to HK$1.42 billion. (Accommodation Value (AV): HK$55,000/sq. ft. to HK$75,000/sq. ft.) It has been the only Government land sale in Repulse Bay in the past nine years.

The last land sale in Repulse Bay was in May 2012, for 108 Repulse Bay Road acquired by Tai Cheung Holdings Limited at a consideration of HK$1.6 billion (AV: HK$39,673/sq. ft). Due to extremely limited supply in this prestigious area, the site is expected to attract high prices. However, since it is on a slope, developers may need to undertake detailed technical studies and assess any challenges that may arise.

 


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