The auction sale of Nos. 291 & 293 Castle Peak Road, Kowloon (Section G and the Remaining Portion of New Kowloon Inland Lot No. 2813) under the Land (Compulsory Sale for Redevelopment) Ordinance through Savills was held today. The Property was sold at the reserve price of HK$120 million to Regal Hotels and Paliburg Group.
The Property has a registered site area of approximately 2,880 square feet and is situated on the south-western side of Castle Peak Road, close to its junction with Fat Tseung Street in Sham Shui Po district of Kowloon. The property is a pair of 5-storey tenement buildings with ground floor occupied as shops. The building was completed in 1955 and served by two common staircases.
The Property falls within an area zoned “Residential (Group A)8” under Kowloon Planning Area No. 5 – Approved Cheung Sha Wan Outline Zoning Plan No. S/K5/39 gazetted on 17 February 2023.
Mr. Terence Wai, Director of Regal Estate Agents Limited said, “The project has a high chance of being developed in conjunction with the adjacent site. The combined site area would total approximately 5,260 square feet. Our preliminary plan is to develop small to medium-sized residential units, though the details remain subject to further discussions with government departments. Moreover, we believe the relaxation of compulsory sale threshold will grant developers greater flexibility in consolidating land for development purposes.”
Mr. Charles Chan, Managing Director of Savills Valuation and Professional Services, said, “To date this year, there have been no compulsory sale applications. This is estimated to be due to the protracted nature of land title consolidation projects and development timelines. From filing an application with the Lands Tribunal for a compulsory sale to the actual auction being held, the process takes a minimum of two years. In the current high-interest rate environment, the associated costs and risks have clearly increased, leading to a diminished appetite among developers for title consolidation initiatives.”