A residential site with sea views in Tseung Kwan O attracted bids from eight developers yesterday, reflecting their confidence in the industry despite official measures aimed at cooling the housing market.
Property consultants estimate the site will sell for between HK$2.19 billion and HK$2.44 billion, or an accommodation value of between HK$4,500 per square foot and HK$5,015 per sq ft. Accommodation value is the value of the land divided by the gross floor area of flats permitted to be built on the block.
"The response was positive," Midland Surveyors director Alvin Lam said. Lam added that bidding interest did not appear to have been affected by the planned release of remaining Home Ownership Scheme flats for sale, and tighter lending conditions on second mortgages.
Gregory Tam, associate director of valuation and advisory services at Colliers International Hong Kong, said the winning bid would provide an indicator of market sentiment. "If the site is sold at above HK$5,000 per square foot, it will reflect developers' optimism for the outlook of the sector in view of the low interest rate environment. If it is sold at below HK$4,500 per sq ft, it will show developers are cautious," Tam said.
If the bids were cautious it could indicate that developers believed the government intended to announced more cooling measures, he said. The Tseung Kwan O site has a total gross floor area of 486,565 sq ft.