Coronavirus fails to stop Hong Kong developers as new site in Lohas Park draws nine bids
- Coronavirus fails to deter Hong Kong’s biggest developers from bidding for the latest residential development in Lohas Park
- Government reduced the land cost by 10 per cent versus previous phase as indicated by lower land premium
Not even the coronavirus outbreak is stopping Hong Kong’s biggest developers from bidding for the biggest plot of land within the Lohas Park development in New Territories in five years. The land tender also came with a sweetener in lower land premium.
There were nine bids for the 961,100 sq ft (89,290 sq m) lot of land in southeastern New Territories at the 2pm local time deadline on Tuesday, according to MTR Corporation. The plot can accommodate up to 2,000 homes, making it the largest among the phases in Lohas Park in the past five years.
The bidders included CK Asset Holdings, Henderson Land Development, Sun Hung Kai Properties, Wheelock, China Overseas Land & Investment, Chinachem Group and Sino Land. New World Development and Empire Group submitted a joint bid. The ninth bidder was not revealed.
“It has been difficult to buy land in recent years, and developers still need to increase their land banks,” said Thomas Lam, executive director at Knight Frank. “The supply of large residential sites near MTR stations is limited, so the development already has considerable advantages.”
The new site is situated on top of a proposed shopping centre, south of the Lohas Park MTR station. The Lohas Park development will be home to about 58,000 residents in 21,500 flats when fully completed in 2025, making it Hong Kong’s single largest residential community.
MTR, the city’s subway operator, is the main project developer.
The number of bidders was in line with expectations, and despite the recent outbreak of the coronavirus in the city, the development was still attractive to property developers, said Knight Frank’s Lam.