Chinachem wins Hong Kong land tender with US$131 million bid amid subdued sentiment
Developers will remain conservative in their bidding until they see stronger signs of recovery in the housing market, consultants say
Hong Kong property developer Chinachem Group won a government land tender in the New Territories at a price within market expectations amid muted sentiment for land bidding, consultants said.
Keen Mighty Limited, a subsidiary of Chinachem Group Holdings, won the site in Sha Tin with a bid of HK$1.02 billion (US$131 million), the Lands Department said on Tuesday.
The 5,652-square-metre (60,838 sq ft) site at the junction of Sha Tin Wai Road and Siu Lek Yuen Road can support a total of 570 units. The bid works out to HK$3,357 per square foot, in line with market expectations that ranged from HK$3,100 to HK$4,000.
Sun Hung Kai Properties (SHKP), Wheelock Properties, CK Asset Holdings, Keen Point Limited and Sino Land also submitted bids for the site, known as STTL 625, by the deadline on Friday, the Lands Department said.
The per-square-foot price is 15 per cent less than SHKP paid in July for another parcel in the area, said Alvin Lam, director at Midland Surveyors. The government received 11 bids for that 2,425-square-metre site in Yuen Shun Circuit, the only residential plot offered during the April to June quarter. Chinachem was among the bidders.
