It is reported that Lai Sun Development (00488.HK) bought two old buildings on Yuk Wo Road in the Western Mid-levels for about $1.3 billion. According to the Land Registry, No. 1 and 1A in the Western Mid-levels were sold for about $1.3 billion. The two old buildings are about 74 years old and involve a total of 10 flats. The existing GFA is about 15424 square feet, which amounts to $84000 per sq ft at the transaction price.
Information shows that the site area of the two old buildings is 11490 sq ft, the plot ratio is about five times, and the buildable floor area is about 57450 sq ft. The acquisition price is about $22628 per sq ft in terms of redeveloped floor area.
Pan Ruimin, senior vice president of Lixin Development, responded that the project will be developed into a luxury house with an investment of 1.7 billion to 1.8 billion yuan and provide about 20 large and medium-sized units, including three to four bedrooms, which are expected to be launched on the market as soon as 2025. He said that the group has always been optimistic about the luxury housing market, which has been booming in recent months, coupled with the rare supply in the Mid-levels, so it has purchased projects for reconstruction.