Land in Hong Kong has always been not just a limited but a scarce commodity. All the developmental activities and investment in infrastructure has been consuming more and more land. The cost of the land has been going up proportionately. A residential site in one of the most desired luxury areas was auctioned for $1.33 billion recently, making it the third most expensive land deal in the history of Hong Kong according to a release by the Land department.
The price at which the lot was finally auctioned was 30% higher than the reserve price but could not hit the top end of the forecast which was estimated by experts to be $1.46 billion. There has been a conscious effort from the government to cool down the real estate market and it seems that it is having a positive impact. Graham Ross the government auctioneer was happy with the result and claimed that it was the market that decided the price. He said that it is not important what some people think it would sell for, the important thing is how much did it actually sell for.
The site is 2.3 hectare in size and can provide for 325,000 square feet of floor area. The site earlier had the Government headquarters and boasts of a view of the Victoria harbor. The site is on Mount Nicholson Road in Peak district, known for its luxury homes.
Via: ibtimes
