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Hong Kong property: sole bidder Sino Land secures site on Lantau Island for US$26 million, nearly 20% below expectations as market languishes
- The developer won the 1.9-hectare parcel in Cheung Sha for HK$203.9 million (US$26.1 million), according to the Lands Department
- The plot will accommodate low-rise town houses that are expected to be sold for between HK$13,000 and HK$14,000 per sq ft
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Sino Land, the only bidder in the tender for a plot of land on Lantau Island, has paid a price nearly 20 per cent lower than market expectations as Hong Kong’s housing market continues to languish in the doldrums.
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The developer won the 1.9-hectare (4.7-acre) parcel in Cheung Sha for HK$203.9 million (US$26.1 million), bidding for which ended on December 15, according to the Lands Department. The site is expected to yield 110 housing units.
It had been valued at about HK$245 million based on a gross floor area of 81,666 square feet, which translates to HK$3,000 per sq ft, Midland Surveyors estimated.
It is the only residential plot of land available in Hong Kong in the current quarter.
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“The bid was submitted in a conservative manner and the transaction also reflected the government’s flexibility in selling the parcel in line with the current market conditions,” Midland said in a research note after the land sale on Wednesday.
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