Tender results boost for Hong Kong property

Residential sites in Tseung Kwan O and Jordan that opened for tender yesterday are expected to be attractive to developers after the better-than-expected land tender result yesterday.

"The land tender result indicated sizeable developer confidence in the outlook for the market," said Ringo Lam Chun-chiu, director for valuation at A.G. Wilkinson & Associates.

Property consultants estimate the Tseung Kwan O site will be sold for about HK$2 billion. The Jordan site is expected to fetch between HK$150 million and HK$210 million.

Yesterday's tender was a good indicator of confidence in the property sector after the latest round of cooling measures , Alvin Lam, a director at Midland Surveyors, said.Cheung Kong (Holdings) outbid eight others to acquire a Lok Wo Sha residential plot in Ma On Shan for HK$2.901 billion. That was above market estimates of HK$1.91 billion to HK$2.7 billion. Meanwhile, Sun Hung Kai Properties outbid six others to win a Tseung Kwan O plot for HK$2.55 billion, within the range of the pre-tender estimated price of HK$2.3 billion to HK$2.65 billion.

Following the positive land sale, individual flat sellers' confidence in the market bounced back with some raising their asking prices by 2 per cent, according to senior district sales manager Mark Wong, of Ricacorp Properties.

The Lands Department said tenders for the Tseung Kwan O site and the Jordan site would close on December 7.

The Tseung Kwan O site has a site area of about 171,890 sqft. The maximum gross floor area allowed on the site is 429,731 sqft , of which an area not exceeding 319,272 sqft is to be used for private residential purposes with a minimum of 400 flats to be built.

The Jordan land has a site area of about 2,920 sqft and maximum gross floor area of 26,275 sqft.