Sun Hung Kai Properties snaps up Kai Tak site for record $25.16b

The purchase represents the most expensive land sold by lump price.

The tender for a non-industrial Kai Tak site has been awarded on a 50-year land grant for a premium of $25.161b, according to the Lands Department, representing the most expensive land ever sold in Hong Kong by lump sum price. 

Super Great Limited, a subsidiary of Sun Hung Kai Properties, outbid four other developers to snap up the plot northeast of the iconic Victoria Harbour, reinforcing Kai Tak's status as a competitive battleground for prime land amongst Hong Kong's land hungry developers.

Sun Hung Kai Properties is “very happy” about Tuesday’s victory and expects to invest a total of $40b in the project, Deputy Managing Director Victor Lui told Reuters.

“The conditions are outstanding. It can be built into a landmark residential project that includes a mall. The government will also invest a lot of resources into the Kai Tak district,” he said in a text message to Reuters. “The prospect is glorious.”

The site is located at New Kowloon Inland Lot No. 6568 at Kai Tak Area 1F, Site 1 and has a site area of 16,556 sq m. The minimum and maximum gross floor areas are 78,897 sq m and 131,495 sq m. Both include the gross floor area of residential care homes and day care centres for the elderly to be constructed by the developer.