Cushman & Wakefield: Land Auction Expects to Fetch HKD13.9 Billion

May Set Another Record High for Luxury Residential Site

HONG KONG, June 8, 2011 /PRNewsiwre-Asia/ -- The most anticipated land auction of Borrett Road at Mid-Levels will be held tomorrow. As most of the luxury residential parcels auctioned in recent two years were located at Kowloon, this site is set to draw a lot more attention. Vincent Cheung, Director, Head of HK Team, Cushman & Wakefield, thinks the land parcel at Borrett Road is more superior to the one on Stubbs Road, as its high-attitude geographical advantage allows the mid-to-high rise apartments to enjoy unobstructed sea views of Victoria Habour upon the project completion. Meanwhile, geographically speaking, though the land site is situated at Mid-Level West, the valuation should take reference from those in Mid-Levels as it is connected to Bowen Road in Mid-level area.

The land parcel covers a site area of 112,893 sq.ft. with a lot ratio of 3.86 and total GFA of 435,296 sq.ft. Mr. Cheung expected a low-medium density, mixed-use residential project will be developed on the site, which will be a large scale project in the vicinity, and its transaction price is set to be a benchmark in the area. Moreover, a number of developers had shown interests in the site, thus the auction is expected to receive overwhelming response, and the price may hit another record high for luxury residential site. C&W estimated that the land value and average value to reach HK$ 13.9 billion and HK$32,000 respectively, while the estimated selling price of completed development is forecasted to be around HK$41,000 per sq. ft.

The other parcel to be auctioned is located at Ping Kwai Road, Ping Shan, Yuen Long. Mr. Cheung thinks it may not be as superb as the Ngau Tam Mei land parcel auctioned earlier, as it is neither close to Yuen Long nor the MTR Tin Shui Wai Station. Yet, the land site sits next to the Ping Shan Heritage Trail, and is surrounded by low-rise buildings and village houses, overlooking exhilarating views. The Ping Kwai Road land parcel covers a site area of 65,402 sq.ft., with a lot ratio of 1 and total GFA of 65,402 sq.ft. As a 5-storey height restriction is set, the land parcel is expected to be developed into a low-density residential villa project, or 20 blocks of villa each with a GFA of about 3,300 sq.ft. C&W estimated that the land value and average value and to reach HK$ 196 million and HK$3,000 respectively, while the estimated selling price of completed development is forecasted to be around HK$6,000 per sq.ft.

Land Auction on 9 June 2011:

Comparable Unit Sales Price (Borrett Road, Mid- Levels)

Comparable Unit Sales Price (Ping Kwai Road, Ping Shan)

About Cushman & Wakefield

Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 234 offices in 61 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at www.cushmanwakefield.com