First land plot for sale on the former runway at Kai Tak receives ‘lacklustre’ response from developers
- A total of eight bids were received for the first site up for sale on the former runway at Kai Tak, according to the Lands Department
The first residential plot for sale on the runway of the city’s former Kai Tak airport received eight bids from property developers at the tender close on Friday, reflecting a weakening appetite for land acquisitions as the city’s property market comes under pressure amid a worsening US-China trade war and rising interest rates.
Ahead of the tender, property analysts had cut estimates on the value of the site, with a gross floor area of up to 574,615 square feet, by as much as 15 per cent.
“It is worse than we expected. Last year, similar sized plots in Kai Tak usually can attract around 15 to 20 bids,” said Alvin Lam, director at Midland Surveyors. “Developers do not want to take much risk as they are seeing a souring market.”
The site in Kowloon East, overseeing Victoria Harbour, is the 15th plot of Kai Tak land sold by government tender since 2013. Analysts said the tender was closely watched because it was expected to set a benchmark for the remaining sites on the runway.
Within a couple of months, the perspective that we hold towards the market has changed, from bullish to bearish
“The developers are much more cautious, particularly after The Peak site was scrapped,” said Hannah Jeong, senior director, valuation and advisory services, Colliers International Hong Kong.