Kerry Properties Ltd, one of Hong Kong’s prime real estate property developer and investment companies, is set to be the major bidder for the Kowloon Tong property in Hong Kong. This is after Kerry’s acquisition of the adjoining property at 1 Ede Road last August for HK$1.28 billion.
The to-be-auctioned land covers the area of 30,225 square feet and is located at 3 and 5 Ede Road. The property is said to be auctioned for about HK$1.54 billion or $199 million, according to surveyors.
The site represents a space value of HK$15,400 to HK$19 per square feet.
A Hong Kong- based analyst, David Ng, who is from the Royal Bank of Scotland Group Plc said that the result shows that the prices of luxury residential units will continue to diverge from the public market.
A senior official for Kerry Properties, the real estate property developer said that the company hopes to develop and build more luxurious properties on the combined area.
This auction is the eighth by the government in the present economic year. The Ede Road site has an utmost ‘for-development-area’ of 90,676 square feet, an is considered a prime site for any real estate property developer.
A real estate property developer would be interested in building high-priced properties in the district because Hong Kong’s residential prices have pitched about 47 percent since the first quarter of 2009, according to Centaline Property Agency Ltd’s statistics.
Kelly Properties is also a known real estate property developer for strategically located logistics centres and warehouses. They also established top quality properties in major locations and develop prime infrastructure projects.
Other real estate property developer who will bid in the auction are Cheung Kong (Holdings) Ltd and New World Development Co Ltd.