Sun Hung Kai Pays Record HK$25bn For Kai Tak Site

A subsidiary of Sun Hung Kai Properties has won a residential plot at a prized site in Kai Tak for a record-breaking premium of HK$25 billion as the city continues to witness a record boom in home prices.

Prices of apartments in the city have been spiralling to record levels for over a year, despite government efforts to rein them in.

Super Great outbid four other competitors for the 50-year land grant in Kai Tak, including subsidiaries of CK Asset Holdings and Henderson Land.

The plot has an area of about 17,000 square metres, with a gross floor area of between 78,000 and 131,000 square metres.

According to the tender requirements, the winner has to build two care centres and residential elderly care homes on the plot.

Previous sales in Kai Tak had also seen bidders submitting record offers, with a commercial building site fetching HK$24.6 billion.

Two months back cash-strapped mainland conglomerate HNA sold a residential site at the former airport site to Wheelock for more than HK$6.3 billion.

HNA had bought four sites for a total of HK$27.2 billion between November 2016 and March last year, offering much more than local developers for all of them.

The troubled conglomerate sold two other Kai Tak sites to Henderson Land for HK$16 billion. HNA still has one property in Kai Tak.