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Middle Gap property catches the eye of those focused on a limited niche
 
Chuang Consortium
International chairman Alan Chuang may develop two detached houses at the 24
Middle Gap Road, The Peak, property he bought from PCCW for HK$145 million.
The sale price was
equivalent to about HK$18,000 per square foot, lower than market
expectations of HK$160 million or almost HK$20,000 psf.
Sources said Chuang will
either retain the 13-year-old house on the lot for his own use or demolish
it to make way for two detached houses.
Construction costs are
estimated at more than HK$30 million or more than HK$3,500 psf for a
redevelopment plan with a plot ratio of 0.5 times, sources said.
PCCW received
offers from six bidders for the 8,165 sq ft two-storey house through a
tender that closed last week. - 2004
February 28 The
Standard
The Peak mansion once
occupied by former PCCW deputy chairman Linus Cheung Wing-lam attracted
seven bids at the close of its public tender yesterday, including one from
overseas.
"The overseas bid
actually came a bit late, but we will accept it," PCCW Infrastructure
chairman Robert Lee Chi-hong said.
Mr Lee said the prices submitted for the two-storey house were competitive
and reflected an improved property market in Hong Kong.
However, a source close
to the deal said a second round of bidding was expected to be held as the
submitted prices were so close to each other. "The seller is very
satisfied with the submitted price. [It] could meet the seller's
expectation," he said.
The 8,165 square foot
house, at 24 Middle Gap Road, is expected to serve as a price indicator of
the area's rare supply of detached houses. Owned by PCCW, it has a site area
of 16,330 sq ft with a plot ratio of 0.5.
The last transaction in
the area was four years ago. The property at 26 Middle Gap Road was being
used as a reference point for the seller's expectations, sole agent FPD
Savills said earlier this year.
That property sold for
$148.8 million. It had a site area of 16,535 sq ft and an accommodation
value of more than $18,000 per square foot.
Colliers International
residential sales director said the average price of PCCW's house could
exceed 1999 levels and reach about $20,000 per square foot in light of the
upbeat luxury property market. "Apart from an increased market price,
some buyers are willing to pay a premium price for a single-lot house,"
he said.
Owners of the 13 houses
on Middle Gap Road include Duty-Free Shoppers co-founder Bob Miller and
Jebsen & Co chairman Michael Jebsen.
Meanwhile, the public
tender of 53 Conduit Road, a house which formerly belonged to the family who
owned the now defunct Furama Hotel, concluded yesterday after receiving nine
bids.
A source said the 25,090
sq ft site was sold for more than $250 million to a locally listed
developer.
According to DTZ
Debenham Tie Leung director, the site could be redeveloped into a 10-storey
residential building with a selling price of about $10,000 per square foot.
- 2004 February 18 South
China Morning Post
PCCW set to sell
Peak property for $196m
The sky's the limit, it appears, when it comes to the prices
of luxury houses in Hong Kong.
Luxury home prices have
been leading the property rebound, rising 20 per cent last year, well ahead
of the primary flat prices which gained only 15 per cent in the same period.
For those with luxury houses, the time to sell is now.
Market watchers say a
luxury detached house on The Peak is expected to sell for a whopping
HK$24,000 per square foot or HK$196 million. Bidding for the property closes
on February 20.
Sources say the vendor -
telecom giant PCCW - has already received offers of HK$160 million, or
nearly HK$20,000 psf. But because of the strong response, they believe PCCW
will likely sell the two-storey detached house at 24 Middle Gap Road -
measuring 8,165 sqft in gross floor area - at around HK$24,000 psf.
Regardless of the final
transaction price, the offer will definitely exceed the existing benchmark
of HK$18,000 psf set recently at the Grosvenor luxury project in Island
South. The property is being sold by tender co-ordinated by sales agent
FPDSavills.
Chuang's Consortium
International, which earlier expressed interest in the house, is among the
potential purchasers.
In a further sign
of the upswing in the luxury market, Wharf Holdings has decided to raise the
target price of its development on The Peak by 30 per cent, to HK$20,000
psf. Wharf set the previous target in the third quarter of 2003.
The development at 3
Gough Hill will provide five detached houses ranging in size from 5,000 to
7,000 sqft.
In Kowloon, property
investor Manhattan Garments (International) is expected to reap as much as
HK$500 million from the sale of all 72 luxury flats at 2-4 Caldecott Road,
Pipers Hill, Lai Chi Kok. The project, co-developed with Sino Land and
New World Development, is expected to receive presale consent this month.
Manhattan Garments said
the joint venture has yet to determine pricing, but expects the flats will
sell for about HK$6,000 psf.
The eight rooftop units
are expected to sell for up to HK$10,000 psf.
International property
consultant Chesterton Pretty says the high-end property market has been
doing well so far this year.
``Avian flu, if spread to
and prevailing in Hong Kong, will affect mass residential sales, both
primary and secondary,'' the firm said in its latest market update released
yesterday.
``Luxury sales,
however, may benefit thanks to their lower site densities and higher
standards of environmental hygiene, mirroring the situation caused by the
Sars outbreak last year.'' - 2004
February 12 Hong
Kong Standard
A luxurious
8,165-square-foot house on The Peak, to be sold by public tender, is
expected to serve as an indicator of the area's rare supply of detached
houses.
Realtors said the two-storey
house, once occupied by outgoing PCCW deputy chairman Linus Cheung Wing-lam,
is expected to sell for about $150 million (or an average price of $18,000
per square foot). The house, at 24 Middle Gap Road, has a site area of
16,330 square feet and a plot ratio of 0.5. It is owned by PCCW.
"Middle Gap Road is one of the most expensive areas on The Peak,"
said Antonio Wu, an executive director of investment at Colliers
International. "It may be less expensive than Baker Road, which has a
better view. However, it is still being sought in the market because of the
scarce supply of detached houses and because it is a sound
neighbourhood."
Among the owners of the
13 houses on Middle Gap Road are Duty-Free Shoppers co-founder Bob Miller
and Jebsen & Co chairman Michael Jebsen.
FPDSavills, sole agent
for the property, said the deadline for public tender was February 20.
"The price will
serve as the district's latest indicator, since the last transaction was
conducted four years ago," said FPDSavills director Jimmy Fong.
According to FPDSavills, the last transaction at Middle Gap Road was for the
property next door, at 26 Middle Gap Road, in December 1999.
The property, which sold
for $148.88 million, had a site area of 16,535 square feet and an
accommodation value of more than $18,000 per square foot.
"The site is similar
in size to the PCCW property, but with a much older building that had to be
torn down. I am confident that the house at 24 Middle Gap Road can be sold
for a similar price, with a 13-year-old building that fully utilises the
plot ratio."
He said the house, which
faces the South China Sea, was built by developer Sun Hung Kai Properties to
a design by architects' firm Palmer & Turner in 1991.
Mr Fong said most
potential buyers had not indicated they planned to redevelop the site, which
comes with an oval swimming pool and spacious garden.
Ricky Poon, a director
with Collier International, estimated the price for the top-end luxury
residential property at 20 per cent less than the price in 1999.
"A site with a
well-built house can sell at a price up to 25 per cent more than a site with
an old house that has to be redeveloped," Mr Poon said.
He estimated building
costs for the house at about $1,500 to $ 1,800 per square foot.
The most recent point of
reference, Mr Poon said, would be Swire Properties' four-house development
at 3 Coombe Road, which included four detached houses in a single lot.
"The four detached
houses share the same lot number. The view and the location are very similar
to that at 24 Middle Gap Road," he said
The residential
development, with houses ranging in size from 4,374 sq ft to 4,436 sq ft,
sold at an average price of $15,000 to $16,000 per square foot in the middle
of last year, Mr Poon said.
"The supply of
detached houses is decreasing. Many sites on The Peak were bought by
developers who created smaller town houses," he said.
The government's cautious
application list of land sales had cleared market doubts about the supply of
luxury sites, he added.
The application list had
had only a minimal effect on luxury residential homes because the supply was
limited, Mr Poon said. He added that it would only speed up the
decision-making process for wealthy buyers.
Anthony Lau, an
executive director with Knight Frank's valuation department, said a single
transaction was not likely to have a marked effect on the fragmented luxury
detached house market. - 2004 January 14 South
China Morning Post
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