Wheelock outbids five rivals for last residential land plot at Hong Kong’s Wong Chuk Hang subway station

Wheelock Properties, one of Hong Kong’s largest developers, has won the right to build apartments at the Wong Chuk Hang subway station, beating five competitors to one of the last remaining plots of land around the city’s mass transport network.

The company’s subsidiary Modern Expert Limited won the right to build on the land parcel measuring 46,800 square metres (503,750 square feet) atop the station on the South Island Line, according to a statement by MTR Corporation, which operates the subway network.

The average land price in the area is estimated at HK$20,000 per square foot, which translates to as much as HK$35,000 per sq ft for completed homes after factoring a profit margin, according to Vincent Cheung, managing director of Vincorn Consulting and Appraisal. Wheelock is likely to sell 750 high-end flats at HK$28,000 (US$3,604) per square foot in the sixth phase of development at the station, an analyst said.

Wheelock’s bid topped those put in by CK Asset, Sun Hung Kai Properties (SHKP), Henderson Land Development, K Wah and a venture between Kerry Properties and Sino Land.

“The winning developer has many years of experience in cooperating with the subway,” said Thomas Lam, executive director and head of valuation and advisory at property consultancy Knight Frank. “[We believe] that it will build a high-end high-quality residential property project.”

The successful bid gives Wheelock its last chance to grab the final remaining plot in the area, an easy walk from the subway station, Cheung said.

“Wheelock could be a bit aggressive in bidding as it has not pocketed [any development plots] in the previous five [rounds of tender] and this is the last one,” said Cheung. “The developer made some good deals selling homes at The Peak, improving its confidence with regards to the city’s housing market. It has spent some big money on bought lands recently.”