Hong Kong property: Sun Hung Kai, Wheelock and CK Asset submit bids for Sha Tin plot
Site STTL 625, which has an area of 5,652 square metres, can support a total of 570 units
Top Hong Kong developers have submitted bids for a government land tender in the New Territories, but experts believe the response could be lukewarm because of high inventory levels and rising construction costs.
The tender for the only residential land to go on sale in the second quarter of the current financial year closed at noon on Friday. The Lands Department said it had received a total of six bids.
Five developers confirmed submitting bids – Sun Hung Kai Properties (SHKP), Wheelock Properties, Chinachem Group, CK Asset Holdings and Sino Land.
The site, known as STTL 625 – located at the junction of Sha Tin Wai road and Siu Lek Yuen road – has an area of 5,652 square metres (60,837 sq ft). It can provide a total of 570 units.
“The bidding was lukewarm,” said Kathy Lee, head of research at Colliers. “A major issue is that developers still hold substantial inventories and remain focused on selling their current stock. Combined with high construction costs, some developers remain cautious in bidding for new sites.”
Midland Surveyors estimated the site’s valuation at HK$1.07 billion on the basis of a land premium of HK$3,500 per square foot.
