Wan Chai residential site gives smaller developers a new opportunity to make their mark on Hong Kong Island
The government will put up two residential sites for tender in the first quarter of the 2022-2023 Land Sale Programme (i.e. April to June 2022). One is a site on Hospital Road, and the other is No. 269 Queen’s Road East in Wan Chai. This month we will examine the Wan Chai site, which was rolled over from last year’s programme.
No. 269 Queen’s Road East, Wan Chai, Hong Kong (IL 9061)
The government first introduced the site in 2013 but later excluded it from the Land Sales Programme because it was undergoing a judicial review. It is occupied by Lui Kee Education Services Centre, previously under the Education Bureau. However, it has now been rezoned from “Government, Institution or Community” (“G/IC”) to Residential (Group E) (“R(E)”) uses.
|Property||No. 269 Queen’s Road East, Wan Chai, Hong Kong|
|Lot Number||Inland Lot No. 9061|
|Zoning||Residential (Group E)|
|Site Area||13,207 sq. ft. (1,227 sq. m.)|
|116,229 sq. ft. (10,798 sq. m.)
(as per Minor Relaxation pursuant to Planning Application No. A/H5/417)
|General Market Expectation||HKD1,390,000,000 to HKD2,200,000,000
(AV: HKD12,000/sq. ft. to HKD18,900/sq. ft.)
Under the Approved Wan Chai Outline Zoning Plan No. S/H5/29 gazetted on 19 November 2021, the zone is intended primarily to encourage the redevelopment of this area for residential use on application to the Town Planning Board. Commercial uses are permitted on the lowest three floors of a building.
In 2021, the government submitted a planning application to increase the site’s domestic plot ratio by 20%, from 6.5 to 7.8. The change required a minor relaxation of the maximum building height restriction of 10% from 100mPD to 110mPD. The planning application was approved with conditions on 28 January 2022.
"There has not been a government land sale in Wan Chai since 2014."
The site is roughly a 10-minute walk from the Wan Chai MTR station and is well-served by public transport. It is situated in an area characterised by mature private residential and commercial developments. Given the high pedestrian flow along Queen’s Road East, the buyer will likely build a retail podium – similar to the neighbouring single-block composite developments such as One Wanchai and Queen’s Cube.
The unit rates of small and medium flats in newer residential developments in the district – including Eight Star Street, the Avenue Phase 2, Yoo Residence and Jones Hive – range from HK$22,000 to HK$39,000 per sq. ft. based on saleable area. Units over 750 sq. ft. range from HK$26,000 to HK$46,000 per sq. ft.
We expect the site to attract strong interest from developers as there has not been a government land sale in Wan Chai since 2014. In addition, since the site area is relatively small, it provides a rare opportunity for small- to medium-sized developers to expand their footprint on Hong Kong Island.