Quick Comment –Kerry pockets small luxury land
plot: The government auctioned off the Kowloon Tong 1
Ede Road site to Kerry for HK$1.285bn, 32% above the
high-end consensus estimate. We see no impact on
Kerry’s numbers due to small project size. Based on a
developable GFA of 77,469sqft, AV is around
HK$16,600/sqft, a new record high for Kowloon and
more than 30% higher than that achieved for the Ho Man
Tin site in June. Bidding was intense with 65 bids from
15 bidders. The land auction result exceeded
expectations and should have some positive impact on
sentiment. That said, we believe the plot size is too small
to have a great impact, and volumes will likely truly
recover only when we see sizeable and successful
primary launches in the coming month or so.