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Jakarta turmoil may hit Aldrich Bay sale

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Sandy Li

Friday's tender of a huge government residential site in Shau Kei Wan may fall victim to market uncertainty arising from the turmoil in Indonesia, analysts say.

They predict the site will fetch a conservative price of $2 billion.

The analysts said Indonesia's civil strife, combined with the weakened state of Hong Kong's property sector, would further tighten bank credit on real estate properties.

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DBS property analyst Winnie Chiu said it was possible bank finance would tighten as a result of the worsening crisis in Jakarta.

'The site may be affected by all the negative news,' she said.

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Ms Chiu expected the site would fetch between $1.9 billion and $2 billion, or an accommodation value of $2,500 to $2,800 per square foot.

Tenders for the 75,950 sq ft site in the Aldrich Bay reclamation area will close at noon on Friday.

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