Developers seen staying cautious on land acquisitions
Hong Kong developers are likely to remain cautious about buying land, industry watchers say, even though they have been aggressively raising prices for new projects.
Hong Kong developers are likely to remain cautious about buying land, industry watchers say, even though they have been aggressively raising prices for new projects.
A tender for a residential site in Ma Kam Street, Ma On Shan, yesterday attracted 18 bidders, but James Cheung, a director at Centaline Surveyors, said their bids were expected to be low.
With the outlook uncertain, the developers’ offers will be conservative
"Since the development scale is small, the investment cost and risk are relatively low," he said. "It attracted many bids. With the outlook uncertain, the developers' offers will be conservative and try to test the reserve price."
Cheung has cut his estimate for the site by more than 11 per cent to HK$900 million, or HK$4,500 per square foot.
Surveyors estimate the site is worth between HK$600 million and HK$900 million.
Among those bidding for the 33,272 square foot site were Cheung Kong, K Wah International, Sino Land, Wing Tai Properties, K&K Property, Wing Tai Properties, HKR International, Far East Consortium, Soundwill Holdings and a consortium of Regal Hotels International and Paliburg Holdings.