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CK Asset unit wins large residential site in Kowloon’s To Kwa Wan for US$767 million, slightly below market expectations

  • Centenary Investments, a wholly-owned subsidiary of CK Asset, won the two adjoining sites for HK$5.99 billion
  • The price was lower than market expectations, but suggests land in urban areas will be more resilient, analyst says

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The sites in To Kwa Wan. Photo: May Tse
Sandy Li

A large residential site in Kowloon’s To Kwa Wan has sold slightly below market expectations amid Hong Kong’s worsening Covid-19 outbreak.

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Centenary Investments Limited, a wholly-owned subsidiary of CK Asset Holdings, won two adjoining sites about eight minutes walk to the To Kwa Wan MTR Station for HK$5.99 billion (US$767.3 million), the Urban Renewal Authority (URA) said on Thursday. The price was lower than the market expectation of HK$6 billion to HK$6.8 billion.

The plot may have sold below expectations but the sale pointed to resilience of urban plots, said Vincent Cheung, managing director of Vincorn Consulting and Appraisal. “The slight fall in price indicates land in urban areas will be more resilient, as compared with that in non-prime areas,” he said.

The outcome indicated Hong Kong home prices were unlikely to fall significantly, despite a short-term downward adjustment, Cheung said.

The adjoining sites, which can yield a maximum gross floor area of 526,811 sq ft, sold for HK$11,382 per square foot, about HK$32 below another site nearby that sold for HK$11,414 per sq ft last October.

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The site, another URA redevelopment project, was sold to Henderson Land Development for HK$8.2 billion. The site will yield a total gross floor area of 717,463 sq ft. The total investment in the project, located at Bailey Street and Wing Kwong Street and about a four minutes’ walk from the plot sold to Centenary Investments, was about HK$12 billion.
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