Surveyors slashed price expectations for the tender of a Tseung Kwan O waterfront site by up to 15 per cent after an adjacent site sold for the lowest price in the area in more than three years.
They estimate the site to the south of Evangel College will fetch between HK$3.34 billion and HK$4.1 billion, or HK$3,900 and HK$4,800 per sq ft when tenders close on Friday.
Alnwick Chan Chi-hing, executive director at consultant Knight Frank, said the waterfront site was better than an adjacent plot bought by Chinachem Group last week for HK$3 billion - or HK$3,653 per sq ft - the lowest in the area since February 2010.
"I believed this site would fetch HK$3.85 billion, or HK$4,500 per sq ft. But the nearby site was sold to Chinachem at a disappointing price last Tuesday and so I have cut my expectation on the latest site to be tendered to HK$3.42 billion, or HK$4,000 per sq ft," he said.
"Developers will bid conservatively as property sales are not active and there have been 11 sites sold in Tseung Kwan O since February 2010.
"The market outlook is not optimistic as interest rates may rise in the coming year. And property prices will be put under downward pressure when an increased housing supply comes on stream in 2015."
Vincent Cheung Kiu-cho, national director for greater China at valuer Cushman & Wakefield, cut his estimate of the tender price from between HK$4,600 and HK$4,700 per sq ft to between HK$3,900 and HK$4,000 per sq ft. The 295,160 sq ft site could yield a total gross floor area of 855,964 sq ft and provide at least 875 flats.
Also up for tender this week is a 15,479 sq ft site in Cheung Sha on Lantau Island. The site could be developed into a low-density residential project with a total gross floor area of 6,191 sq ft.
In 2011, two sites in the area were sold for over HK$5,500 per sq ft. Patrick Chow Moon-kit, head of research at Ricacorp Properties, said the latest site could fetch around HK$40.25 million, or HK$6,500 per sq ft.