Hong Kong’s top developers are bidding on government land tenders in the New Territories, but experts say high inventory levels and rising construction costs may slow the response.
Bidding for the only residential property to go on sale in the second quarter of this year ended at noon on Friday. The Ministry of Lands announced that a total of six bids were received.
Five developers have confirmed they will submit bids: Sun Hung Kai Properties (SHKP), Wheelock Properties, Chinachem Group, CK Asset Holdings and Sino Land.
The site, known as STTL 625, is located at the intersection of Sha Tin Wai Road and Siurek Yuen Road and measures 5,652 square meters (60,837 square feet). A total of 570 units can be provided.
“Bids were lukewarm,” said Kathie Lee, head of research at Colliers. “The big problem is that developers still have large amounts of inventory and remain focused on selling their current inventory. High construction costs have also led some developers to move towards new sites. remains cautious about bidding.
Site STTL 625 is located at the intersection of Sha Tin Wai Road and Siurek Yuen Road. Photo: Land Office
Midland Surveyors valued the site at HK$1.07 billion, based on a land premium of HK$3,500 per square foot.
