Hong Kong government rejects sole bid in tender for private developers to build subsidised flats

Lands Department rejects bid as tendered premium did not meet reserve price on Chai Wan site, the first of three under pilot scheme

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Workers at a public housing construction site in Cheung Sha Wan. Photo: Xiaomei Chen

Published: 9:01pm, 24 Jul 2024Updated: 9:21pm, 24 Jul 2024

Hong Kong authorities have rejected a bid for the first site put up for public tender under a pilot housing scheme for private developers to build subsidised homes, after its tendered premium failed to meet the government’s reserve price.

The Lands Department announced on Wednesday the tender result for the site on Cheung Man Road in Chai Wan for development under the Private Subsidised Sale Flat Pilot Scheme, saying it had rejected the sole bid from private developer Able Best Limited.

“The government will not sell a site if no bid reaches the reserve price as assessed by the government’s professional valuers,” it said. “This is in the interest of protecting public revenue.”

The department insisted the tender provided enough incentives for private developers, but said this could be reviewed in future if there was room to adjust tendering conditions.

It added that authorities would not speculate on the considerations behind bids placed by tenderers.

A concept graphic of the site on Cheung Man Road in Chai Wan for development under the Private Subsidised Sale Flat Pilot Scheme. Photo: Eastern District Council

The department explained that bids were influenced by a variety of factors, such as how individual tenderers assessed the attractiveness of the site and the market conditions, as well as their corporate positions and development strategies.