Ma On Shan land price plunges 18%

It’s on the low end of revised estimates.

According to Barclays, SHKP beat out 10 other developers for the 430,560sf residential site in Ma On Shan.

The winning bid of HK$1,826mn for an accommodation value (AV) of HK$4,241psf was towards the low end of the surveyors’ estimates, which had already been revised down to HK$4,000-5,000psf from HK$5,000-5,200psf before.

Here’s more from Barclays:

Compared with a nearby site won by Cheung Kong back in November 2012 for HK$5,160psf, SHKP’s AV was 18% lower.

SHKP expects total development costs of about HK$5bn for the site, suggesting a total cost of about HK$11,612psf, close to the current average selling price at Henderson Land/NWD’s Double Cove project nearby.

Meanwhile, a 14,063sf GFA site in Peng Chau was sold to private developer, Fame State (owned by son of Agile’s vice chairman) for HK$21mn.

The AV of HK$1,493psf was also near the low end of market estimates which had ranged from HK$1,400-1,850psf.