The government is expected to generate land sales revenue of between HK$1.3 billion and HK$1.9 billion from the auction of two low-density residential lots in Tuen Mun on May 29.
Some surveyors have lowered their price forecast for the sale of the two sites in the wake of the less than expected price paid for the West Kowloon site in the May 8 auction.
Lanbase Surveyors director Chan Cheong-kit had expected the two sites to fetch HK$1.66 billion, with accommodation value ranging between HK$3,502 and HK$4,000 per square foot. However, he has adjusted the valuations and expects the two sites to fetch about HK$1.34 billion, or about HK$3,000 per square foot.
Last month, surveyor Albert So Chun-hin had estimated the two Tuen Mun sites to see HK$1.56 billion or HK$3,500 per square foot. He now also expects them to garner HK$1.34 billion. 'Property prices could reach HK$5,000 per square foot after completion,' he added.
Most of the sites sold at land auctions in the past year sold at records on a per square foot basis making them even pricier than nearby completed flats.
'Developers would only offer a price for the site close to the property prices of new projects in the same area now, as they don't think property prices would increase 20 or 30 per cent in the next two to three years,' Mr Chan said.
