New World Kwu Tung South Project Approved for 11 Residential Towers with 1.24M sq ft GFA
SingTao · 1 SOURCESabout 1 hour ago3 MIN
Summary
The Buildings Department released its June approval list, authorizing 9 construction plans across Hong Kong, with New World Development's Kwu Tung South project standing out as the largest development. The approved plan permits construction of 11 towers ranging from 17 to 20 floors, with each tower featuring 1 to 2 podium floors and 1 basement level. The project carries a total gross floor area of approximately 1.2455 million square feet, comprising 1.2129 million square feet of residential space and 32,600 square feet of non-residential area .
The development has undergone two separate land premium negotiations. The original approval in 2008 permitted 90 houses with about 161,700 square feet of gross floor area, and a land exchange was completed in 2018 with a premium of approximately HK$535 million, translating to about HK$3,308 per square foot. In January this year, the second land premium of nearly HK$1.4 billion was settled, adding approximately 1.0749 million square feet of floor area at about HK$1,300 per square foot. Combined, the two land premium payments totaled HK$1.935 billion, averaging approximately HK$1,561 per square foot .
Key Points
- New World Development's Kwu Tung South project (Lot 2579, SD 92) is located near Fanling Highway and Kwu Tung Road, adjacent to the Villa Aires development .
- The project received its first approval in 2008 for 90 houses, completed land exchange in 2018 with HK$535 million premium, then settled second premium of HK$1.4 billion in January for additional floor area .
- In June, Hong Kong had only 2 private residential projects breaking ground with 344 units, representing a 36.5% month-on-month decline .
- First half of 2024 cumulative construction starts reached 2,667 units, down 16% from 3,169 units in the same period last year, marking the lowest first-half figure in 16 years .
- Private residential completions in June reached 3,272 units across 11 projects, while first-half completions of 7,654 units achieved 45.1% of the Rating and Valuation Department's annual forecast of 16,975 units .
Why It Matters
The Northern Metropolis initiative continues to gain momentum as New World Development becomes the largest land owner in the development zone with 8 residential projects encompassing approximately 10,000 units. The contrasting trend of declining construction starts alongside robust completion numbers suggests developers are prioritizing delivery of existing projects over launching new ones, which could impact housing supply in the coming years as the construction pipeline narrows .
The Northern Metropolis initiative continues to gain momentum as New World Development becomes the largest land owner in the development zone with 8 residential projects encompassing approximately 10,000 units. The contrasting trend of declining construction starts alongside robust completion numbers suggests developers are prioritizing delivery of existing projects over launching new ones, which could impact housing supply in the coming years as the construction pipeline narrows .