Kau Tao is expected to be favored by small and medium developers
HONG KONG, July 25, 2013 /PRNewswire/ -- Leo Cheung Sing Din, Icon City Group's Director, Business Development and Head of Business Valuation said, due to different development conditions in the two residential lands which will end the tender tomorrow, the valuation is relatively conservative. Icon City expects that the valuations on the site in Area 55, Castle Peak Road, Tai Lam, Siu Sau, Tuen Mun (TMTL435) will be sold at HK$530million and AV HK$3,326 per sq ft, while the site in Area 56A, Kau To, Sha Tin (STTL563) will be sold at HK$1.2billion and AV HK$9,000 per sq ft.
Cheung further points out that Siu Sau land in Tuen Mun has many development restrictions, therefore the cost of the project is expected to be higher. This may affect the intention of and offering price from developers. The site area is approximately 11,626 sq m (125,142 sq ft) and the maximum gross floor area is 14,806 sq m (159,372 sq ft). According to the Conditions of Sale, the development must provide no less than 175 residential units. The land is also subject to height and floors restrictions which require the development not to build more than 10 storeys and 58 meters above Hong Kong Principal Datum. The developer is required to submit various impact assessment reports such as visual, sewerage, noise and drainage, etc. in order to evaluate the influences brought to the neighborhood by the project. The above factors will bring additional costs to the developer, and further affect the tender price. Cheung believes this land will be developed into a luxury multi-storey residential project, and the completed flats can be sold at HK$12,000 per sq ft (saleable).
The site area in Area 56A, Kau To, Sha Tin is approximately 5,950 sq m (64,046 sq ft) and the maximum gross floor area is 12,495 sq m (134,496 sq ft). This site is estimated at a price of HK$1.2billion. Cheung points out that the site is located above the slope with uneven gradients, therefore the setting out of the development will be challenging to enjoy the harbor view. As this is a relatively small construction site, small to medium scale developers are expected to be interested in the tender. Therefore this would be less indicative towards the luxury property market. Cheung estimates that this land will be developed into luxury houses, multi-storey residential buildings or composite project, and the completed flats can be sold at HK$25,000 per sq ft (saleable).
About Icon City Group
Icon City is a pioneering profession group in Hong Kong real estate industry. Operating under Prudential, Icon City has been providing diverse and professional real estate related service for over thirty years. With a strong presence and extensive client network, Icon City's team of professionals has surged forward and offered quality services in building and engineering design, surveying, project management, renovation, alterations and additions, land matters advisory and real estate valuation in Hong Kong, Macau and Mainland China. With an on-going focus on customer satisfaction, the group strived to expand the depth and variety of services, which now include asset consulting and property management etc. Drawing from a wide range of strengths and experiences, the group continues its commitment to provide comprehensive service and transform our clients' dreams of an iconic lifestyle into a solid reality.
