Small-scale site at Anderson Road Quarry is sure to catch investors’ eye, especially given the surrounding residential developments
This month’s Land Sales Programme reviews one of the commercial sites off Anderson Road, Kwun Tong, Kowloon. The 2022-23 Land Sale Programme offers two new commercial sites on Anderson Road, Lot 1077 and Lot 1078, in Survey District No. 3. Lot 1078 is being disposed of by public tender, and invitations commenced on 29 July 2022.
Lot 1078 in Survey District 3 (Lot 1078 in SD3) off Anderson Road, Kwun Tong, Kowloon
|Property||Off Anderson Road, Kwun Tong, Kowloon|
|Lot Number||Lot 1078 in SD3|
(Under Conditions of Sale)
|Non-industrial (excluding residential, office, hotel, godown and petrol filling station) purposes|
|Site Area||63,292 sq. ft. (5,880 sq. m.)|
(Under Conditions of Sale)
|139,243 sq. ft. (12,936 sq. m.)|
|Maximum Plot Ratio||2.2|
|Maximum Height Restriction
|General Market Expectation
|HKD557,000,000 to HKD975,000,000
(AV: HKD4,000/sq. ft. to HKD7,000/sq. ft.)
|Tender Closing Date||Noon on 26 August 2022|
Lot 1078 is the first commercial land sale within the Anderson Road Quarry Development. Its neighbourhood is characterised by public, private and subsidised housing estates.
The site is situated next to On Kin Road, north of On Tat Estate, a 10-minute drive from Kwun Tong MTR station and is predominantly served by buses and public light buses. It is close to several neighbourhood malls, including On Tat Shopping Centre, Sau Mau Ping Shopping Centre and Po Tat Shopping Centre.
Under the Approved Kwun Tong (North) Outline Zoning Plan No. S/K14N/15 gazetted on 15 January 2016, this zone is intended primarily for commercial development, which may include uses such as shop, service, place of entertainment and eating place, functioning as regional or district commercial/shopping centre(s).
"The site will likely provide retail space to meet the growing demand from the surrounding public housing estates"
The site will likely provide retail space to meet the growing demand from the surrounding public housing estates, due to complete in phases from 2024. Previously, the government sold two residential sites in the area. In 2018, Chinachem Group acquired Lot No. 1068 in SD3 at a consideration of HKD3.11 billion (accommodation value: HKD12,003/sq. ft.) for private residential development, which is now known as Mount Anderson, due to provide 334 flats by 2023. In 2020, CK Asset Holdings Limited acquired Lot No. 1069 in SD3 at a consideration of HKD4.95 billion (accommodation value: HKD4,546/sq. ft.) to build 1,700 units of private and subsidised starter homes.
According to Lot 1078’s Conditions of Sale, the purchaser must complete the development by 30 June 2028. In Q1, 2023, the government will complete the construction of On Kin Road, which abuts the site, and will provide vehicular access.
"Existing retail supply in the area is scarce, with supply mainly coming from ageing malls owned by Link REIT or the Housing Authority."
Existing retail supply in the area is scarce, mainly coming from ageing malls owned by Link REIT or the Housing Authority. Future supply is also limited. Lot 1077 in SD3, located adjacent to the subject site, is likely to offer about 126,200 sq. ft. for retail. The government will sell the site by tender in the second half of the 2022-23 Land Sale Programme.
The Housing Department is due to construct several housing developments in the area. It proposed using sites R2-4 and R2-5 for non-domestic facilities under “Shop and Services” and “Eating Place”. These sites could provide approximately 145,000 sq. ft. of non-domestic area. The Town Planning Board greenlit the application in April 2021.
Major retail players and local investors targeting a relatively stable long-term investment in non-core districts will likely find Lot 1078’s small – and thus more affordable – scale and fairly remote location appealing.
Given the area’s distance from the MTR, the residential population would relish the idea of having their shopping needs met nearby, forming a stronger retail demand, similar to that of Aberdeen. Furthermore, the area will be surrounded by green space which a potential developer could consider utilising for unique shop designs that capitalise on open space.
Lot 1078 also allows developers or investors to reap synergistic benefits from expanding their existing portfolio in the area. We expect the site will be developed into a neighbourhood mall given their recent upsurge in popularity and the stable local demand from the new housing supply.
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