You won’t believe how much dirt sells for in the world’s priciest market

Plot of government land in The Peak could go for over $5B -- $13K psf

TRD NATIONAL /
Sep.September 20, 2018 03:30 PM

The Peak with a money sky in Hong Kong (Credit: Wikipedia)

If you thought land deals in New York were insane, have a seat. A plot of government land in Hong Kong is expected to fetch an eye-popping $13,000 a square foot, a record for the city and possibly the world.

The 404,300-square-foot piece of land in The Peak, Hong Kong’s ritziest neighborhood, is expected to sell for $5.1 billion. At that price it would be the most valuable piece of land ever sold in the city, according to the South China Morning Post.

The enormous price ticket is partly due to scarce available land in the Southern District and The Peak, which makes up only 1 percent of available residential land in the city, according to Thomas Lam, a senior director at Knight Frank.

“It will become the new land king,” Lam told the outlet. “Available land in this upscale district is very rare and developers would be very aggressive in bidding for the site.”

It is the first government-owned piece of land in the area sold in eight years, since another property was sold for $1.3 billion, or $4,000 a square foot.

Existing homes in The Peak also command exorbitant prices. A four-bedroom home in The Peak was listed this week for $440 million, and that home is almost certainly a tear-down.

A development site that once contained a historic villa at 75 Peak Road sold in 2015 for $657.8 million, and Alibaba CEO Jack Ma also bought a house on Peak Road a few years ago for $193 million. [SCMP] — David Jeans 


Related Articles

arrow_forward_ios
731 Lexington Avenue and 410 East 61st Street (inset) with Vornado's Steve Roth (Googel Maps; VNO)

Home Depot eyes former Bed Bath & Beyond space on First Ave

Home Depot eyes former Bed Bath & Beyond space on First Ave
Ian Schrager and the Pulic Hotel at 215 Chrystie Street (Getty; Google)

$60M mezz loan on Ian Schrager’s Public Hotel is for sale

$60M mezz loan on Ian Schrager’s Public Hotel is for sale
J.C. Penney at the Westfield South Shore mall in Long Island and  J.C. Penney CEO Jill Soltau (Google Maps; Getty)

J.C. Penney to keep Bay Shore outpost open for now

J.C. Penney to keep Bay Shore outpost open for now
Signature Bank CEO Joseph DePaolo and New York Community Bank CEO Joseph Ficalora (Photos via Getty; Facebook; iStock)

NYC’s multifamily lenders see shares tumble in 2020

NYC’s multifamily lenders see shares tumble in 2020
WeWork CEO Sandeep Mathrani (Getty)

WeWork sells majority stake in China division

WeWork sells majority stake in China division
The analysis predicts that office vacancies across the world will continue upward (iStock)

Report: Office market won’t return to glory until 2025

Report: Office market won’t return to glory until 2025
Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate
The Martinique hotel (Wikipedia, Google Maps)

Operator of Martinique Hotel in Manhattan files for bankruptcy

Operator of Martinique Hotel in Manhattan files for bankruptcy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...