Small sea-view plot proves HK$30m draw for bidders

PUBLISHED : Saturday, 09 July, 2011, 12:00am
UPDATED : Saturday, 09 July, 2011, 12:00am


The government's tender of a small seaview commercial property site in Sai Kung attracted 12 bidders, which industry players said was a strong response.

The 17,862 sq ft site at Tui Min Hoi is the first government land site triggered for sale under the land application list system this financial year, with the applicant guaranteeing a minimum bid of HK$29.8 million.

'That's a lot of bidders,' Centaline Surveyors executive director James Cheung King-tat said yesterday after the tender's closure. A few of his clients had asked about the site previously, he said.

Cheung said the site could be used for a variety of purposes, including a restaurant or supermarket. It is located away from the traditional tourist spots and shopping areas, but it is surrounded by village houses with a lot of traffic. 'Since the site faces the sea, it's possible that the bidders may want to turn the site into a sea-view restaurant, just like others in Sai Kung,' he said.

According to the government's tender notice, the site is designated for non-industrial purposes. No homes, hotels, warehouses or petrol stations can be built there. Any building to be constructed on the site should be no more than two storeys high.

With a maximum gross floor area of 13,396 sq ft and a minimum guaranteed bid of HK$29.8 million, the average floor price would be at least HK$2,225 per sq ft.

Cheung expected the average floor price would be around HK$2,500 per sq ft, while Alvin Lam Tsz-pun, a director at Midland Surveyors, forecast the site would end up priced no higher than HK$2,447 per sq ft.

'Because of the location, I think the bidders plan to reserve the piece of land for their own use instead of constructing a building for sale or lease,' Lam said. 'Therefore, I expect the winning bid should have a price quite close to the minimum guaranteed amount,' he said.