Surveyors say presales at Pak Shing Kok residential project could begin in 2028
New World Development and China Merchants Land broke ground recently on a joint residential project in Pak Shing Kok, Tseung Kwan O, with presales expected to begin as early as 2028, when surveyors say pricing pressure may have eased. James KT Cheung, executive director of the valuation department at Centaline Surveyors, said property prices remain lower than they were in 2022, when the…
Pak Shing Kok, a residential project in Tseung Kwan O, Hong Kong, is set to commence presales as early as 2028, according to surveyors. New World Development and China Merchants Land have broken ground on the joint venture, with pricing pressure potentially easing by that time. James KT Cheung, executive director of Centaline Surveyors, stated that property prices are currently lower than in 2022 when the consortium secured the project.
He noted that a land premium of approximately HK$3,800 per square foot of gross floor area is not particularly expensive, considering recent land acquisitions. Alex Leung, senior director at CHFT Advisory and Appraisal, estimated the total cost of the project at HK$4,734 per square foot, including land premium and an HK$50 million entrance fee.
He predicted a sale price of HK$18,000 per square foot for the project's saleable area. Surveyors revealed that applications for presales could be submitted up to 30 months before the estimated completion date, potentially allowing for a 2028 launch. The project's minimum flat size is 280 square feet, with the lowest price expected to be around HK$4.6 million (HK$16,400 per square foot) for the smallest flat.
New World Development emphasized its commitment to maximizing the value of its land bank and working with strategic partners for efficient development and long-term returns. The developer also announced the final outcome of its bond exchange programme, exchanging US$199.28 million in older, short-term bonds for new, longer-term bonds, with a total of US$189.3 million in new bonds issued.
The Pak Shing Kok project, adjacent to Hang Hau MTR station, is expected to deliver around 600 small and medium-sized homes, including a clubhouse, parking, and other facilities. The land premium for the project is HK$1.1 billion, or approximately HK$3,789 per square foot, based on a total gross floor area of around 27,000 square meters, making it a record high for Tseung Kwan O district.
The consortium also agreed to a profit-sharing arrangement based on future property sales, with MTR Corp estimating completion by 2031.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
