State-backed conglomerate Citic Pacific wins bid for Tai Hang luxury residential site for HK$3.2 billion
- Company beats 24 other bidders for the plot, which was initially expected to go for HK$1.7 billion to HK$5.41 billion (US$218 million to US$694 million)
- Tai Hang plot is Citic Pacific’s first win since it secured a residential site in Ma On Shan four years ago
Hong Kong-listed and Chinese state-backed conglomerate Citic Pacific has won a luxury residential plot in Tai Hang, southeast of Causeway Bay, for HK$3.2 billion (US$410.8 million), the city’s Lands Department said on Wednesday.
The company beat 24 other bidders for the plot, which was initially expected to go for a bid between HK$1.7 billion and HK$5.41 billion (US$218 million and US$694 million), according to market observers.
The winning bid is being viewed as indicative of the cautious outlook prevailing in Hong Kong’s property market following seven months of anti-government protests as well as the more than a year old US-China trade war.
“The conservative pricing has definitely been affected by the current market conditions, as well as the impending vacancy tax,” said Thomas Lam, executive director at property consultancy Knight Frank.
The Tai Hang plot – won by Bright Vision International, a company Citic Pacific owns – is the first Citic Pacific has won since securing a residential site in Ma On Shan for HK$1.47 billion four years ago. The company said it plans to invest HK$5.5 billion, including the land cost, in the development.
Other bidders for the plot included major Hong Kong developers CK Asset Holdings, Sun Hung Kai Properties and Henderson Land Development, as well as mainland Chinese developers such as KWG Group, Kaisa Group Holdings and Logan Property Holdings.
