Amidst growing friction with Chinese authorities, the US Department of State has put up for sale a residential site in one of Hong Kong’s most exclusive enclaves, and it could be set to sell for nearly a quarter less than a neighbouring project fetched two years ago.
CBRE, which has been engaged to market the luxury project, is predicting that mainland developers could be among the leading bidders, while local developers such as Wheelock Properties are also expected to put up a fight for the 94,796 square foot (8,807 square metre) site atop Shouson Hill.
“This is a rare investment opportunity and we expect strong interest from local and mainland Chinese developers,” said Andy Wong, CBRE’s senior director of capital markets in Hong Kong.
With Hong Kong’s residential market slowing over the past year, Vincorn Consulting managing director Vincent Cheung, expects bids for 37 Shouson Hill Road to range from HK$3.1 billion ($400 million) to HK$3.5 billion.
Central government-controlled China Resources Land purchased a neighbouring site in 2018, which has fuelled speculation in some quarters that the Shenzhen-based developer may be eyeing the property used as housing for US consulate staff as a possible bolt-on for a much bigger development.