Kerry Properties Plans Twin Residential Towers After $549M Kowloon Land Win

Elections

Kerry Properties prepares to construct 2 25-storey high-end property towers in Hong Kong’s Ho Man Tin location after winning a HK$ 4.31 billion( $549 million )federal government website at Kowloon’s greatest property land rate in almost 5 years.

Kerry’s proposed task will consist of a citizens’clubhouse and parking, with homes on the middle and upper floorings anticipated to have views of Victoria Harbour, according to a Tuesday statement by the HKEX-listed designer managed by billionaire Robert Kuok. The federal government approximates that the plot can accommodate 250 homes.

“We are positive in the task’s potential customers and will make use of the group’s comprehensive experience in providing premium homes to develop a renowned, premium advancement in Ho Man Tin,” stated Calvin Tong, director and basic supervisor for Hong Kong at Kerry Properties.

Granted by the Lands Department on Tuesday, the tender drew in 10 quotesKerry’s winning quote went beyond CHFT Advisory and Appraisal’s anticipated award cost of HK$ 2.45 billion to HK$ 2.6 billion by approximately 66 to 76 percent, according to Alex Leung, primary property surveyor at the Hong Kong-based company.

“The granted rate level is for that reason a huge surprise to us,” Leung informed Mingtiandi.

Premium Pricing

The 55,650 square foot hillside plot on Fat Kwong Street, referred to as Kowloon Inland Lot No. 11301, brings a 50-year land grant and allows 207,745 square feet (19,300 square metres) of gross flooring location. Kerry needs to likewise develop branches of an area senior centre and a neighborhood psychological health centre, whose flooring area is omitted from the advancement limitation.

Kerry Properties chairman and CEO Kuok Khoon Hua is including more websites (Image: Kerry Properties)

The factor to consider relates to HK$ 20,738 per square foot of allowed flooring location, compared to quotes varying from CHFT’s HK$ 11,800 on the low end to Centaline’s HK$ 15,000. Kowloon last taped a property land rate above HK$ 20,000 in October 2021, when Lai Sun Development paid HK$ 22,464 per square foot for a Broadcast Drive website in Kowloon Tong.

CHFT’s Leung associated the high quote similarly to the shortage of high-end property websites and belief in the domestic land market, pending disclosure of the not successful deals. He stated Kerry’s success selling Mont Verra in Beacon Hill provided the designer higher self-confidence than its competitors.

Leung anticipates Kerry to favour bigger high-end homes, arguing that smaller sized flats would be much easier to offer however provide minimal scope to command costs above neighboring jobs. He approximates that the advancement would require a typical asking price of HK$ 45,000 per square foot of commercial location to produce an affordable earnings margin.

The tender’s not successful bidders consisted of Sun Hung Kai Properties, China Overseas Land & & Investment, Poly Property Group, Hang Lung Properties, Chinachem Group, CK Asset Holdings, K Wah International Holdings and Wheelock Properties. Sino Land and Great Eagle Holdings sent a joint quote.

Earlier Kerry purchases this year consisted of a HK$ 1.38 billion federal government website in Shau Kei Wana HK$ 430.3 million Kowloon Tong plot and a HK$ 354 million website at 62E Robinson Road and 4 Seymour Terrace in Mid-Levels West. Together with Ho Man Tin, those 4 deals represent HK$ 6.48 billion in land acquisitions.

The most recent purchase comes as Hong Kong produced 81 percent of Kerry’s first-half contracted sales, with regional sales increasing 1 percent to HK$ 5.6 billion. Mainland contracted sales fell 88 percent to HK$ 1.3 billion, partially showing contrast with the Shanghai Jinling Residences launch in the very first half of 2025.

Kerry’s 3 first-half Hong Kong acquisitions included 235,000 square feet to its advancement pipeline, with the Ho Man Tin plot supplying almost as much flooring location in one deal. The group’s tailoring ratio alleviated to 31.3 percent at the end of June from 33.3 percent 6 months previously, supported by invoices from home sales.

Urban Sites in Demand

The brand-new website has to do with 6 minutes on foot from Ho Man Tin MTR station, served by the Tuen Ma and Kwun Tong lines. West Kowloon and Hung Hom train stations are each an eight-minute drive away, including access to cross-boundary transportation connections.

Fat Kwong Street was the sole brand-new federal government domestic tender revealed in the July-September land-sale program. Advancement Secretary Bernadette Linn stated in July that rezoning from federal government, organization or neighborhood utilize to property usage had actually been finished, opening an advancement chance in a fully grown area with recognized centers and transportation links.

Hong Kong’s yearly land-sale list makes up 9 domestic websites efficient in providing over 6,500 homes. CBRE approximated in an April evaluation that the program would use just 7 different domestic tenders, explaining a restricted pipeline of direct federal government disposals.

The list bundled 3 property plots in the Hung Shui Kiu/Ha Tsuen New Development Area into a single Northern Metropolis tender along with business and innovation park websites. CBRE stated the plan’s capital requirements and require for commercial proficiency might restrict involvement and motivate designers to look for market partners.

The consultancy determined Ho Man Tin and Shek Mun as more workable city advancement chances, supported by recognized facilities and clearer land-value standards. The websites used a various threat profile from the preparation restrictions at Ta Ku Ling and the big Stanley property plot whose tender was withdrawn in January 2023 after quotes stopped working to fulfill the federal government’s reserve rate.