The Hong Kong SAR government will offer 15 new residential sites in this fiscal year (April 2021 – March 2022), four of which are located on Hong Kong Island. Two government land sale sites will be made available in the second half of 2021-22. Located on Sai Ning Street/ Victoria Road and Hospital Road, both sites are small sites zoned as Residential (Group A).
The details of the sites are highlighted as follows:
Property 1: IL9069
| Property | Sai Ning Street and Victoria Road, Kennedy Town, Hong Kong |
| Lot Number | Inland Lot No. 9069 |
| Zoning | Residential (Group A) |
| Site Area | 5,780 sq. ft. |
| Maximum GFA | 46,240 sq. ft. |
| Maximum Plot Ratio | 8.0 |
| Maximum Site Coverage | 1,926 sq. ft. (33.33%) |
| Height Restriction | 100 mPD |
| General Market Expectation | HK$620M to HK$970M (HK$13,408/sq. ft. to HK$20,978/sq. ft.) |
The Sai Ning Street site is located within a three minute walk to the Kennedy Town Bus Terminus, and within a 10-minute walk to the Kennedy Town MTR station. Under the outline zoning plan, flats and houses are always permitted and commercial uses are permitted on the lowest three floors of a building. As pedestrian flow along Sai Ning Street and Victoria Road are low, purchasers may choose to build a pure residential development.
In 2019, an application for planning permission was submitted to the Town Planning Board to redevelop the China Merchants Wharf and the China Merchants Godown A and Godown B to a composite retail, hotel and office development. Although the planning application was deferred, it is expected that upon redevelopment, the sea view from the Sai Ning Street site will also be blocked.
Property 2: IL8872
| Property | Hospital Road, Hong Kong |
| Lot Number | Inland Lot No. 8872 |
| Zoning | Residential (Group A) |
| Site Area | 4,984 sq. ft. |
| Maximum GFA | 39,872 sq. ft. |
| Maximum Plot Ratio | 8.0 |
| Maximum Site Coverage | 1,661 sq. ft. (33.33%) |
| Height Restriction | 150 mPD |
| General Market Expectation | HK$540M to HK$810M (HK$13,543/sq. ft. to HK$20,315/sq. ft.) |
The Hospital Road Site is in Mid-Levels West, located within a 10-minute walk of Sai Ying Pun MTR station. Although the distance to the Sai Ying Pun MTR station may seem close, the site is accessible through a continuous uphill hike along Hospital Road. Under the outline zoning plan, flats and houses are always permitted and commercial uses are permitted on the lowest three floors of a building. Similar to the Sai Ning Street site, purchasers may choose to build a pure residential development as the pedestrian flow along Hospital Road are low.
The unit rates of relevant residential developments in the sites vicinity, including Central 8, 63 Pokfulam, Eight Star Street, Babington Hill and the Richmond, range from HK$33,000 to HK$42,000 per sq. ft. on a saleable area basis. Given there was no recent land sales by the government in Sai Ying Pun and Kennedy Town, we believe that these two sites will receive large interest from developers. In addition, since the site area for both sites are small, it provides a rare opportunity for small to medium sized developers to expand their footprint on Hong Kong Island.
