Hong Kong’s top developers submit bids for Ap Lei Chau residential site that could fetch up to US$206 million
- Sun Hung Kai Properties, Sino Land, CK Asset and New World Development among the 18 bidders for the 12,150 square feet plot in Ap Lei Chau, in Island South
- The plot’s valuation ranges from US$99.3 million to US$206.3 million
A residential site in Hong Kong has attracted a stronger than expected response, even as the city faces headwinds from the coronavirus pandemic and Beijing’s plan to pass a controversial national security law.
The Lands Department said on Friday that 19 bids have been submitted for the 12,150 sq ft plot in Ap Lei Chau, in Island South, the most for a site sold by government tender this year. They include Sun Hung Kai Properties, Sino Land, CK Asset Holdings and New World Development.
“It is the strongest response for a site offered for government tender so far this year,” said Thomas Lam, senior executive director at Knight Frank. “It reflects developers’ faith in the outlook of the luxury residential market.”
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The market valuation for the plot, which will yield a total gross floor area of 88,280 sq ft, ranged from HK$770 million to HK$1.6 billion (US$99.3 million to US$206.3 million), or HK$8,700 to HK$16,000 per sq ft. In January, a residential site in Tuen Mun went to Kaisa Group Holdings for HK$3.5 billion after it generated 16 bids.
But property stocks bore the brunt of a sell-off on worries that the law, which intends to ban all seditious activities aimed at toppling the central government, may lead to renewed social unrest and a decline in the city’s appeal to global capital. SHKP, the largest developer by market capitalisation, fell 7.8 per cent on Friday, outpacing the 5.6 per cent slide in the Hang Seng Index.
Li Wing-sau, executive director of Tai Cheung, which has submitted a bid for the Ap Lei Chau plot, brushed off the likely impact of the legislation. “The proposed law is unlikely to deal a severe blow to the residential market as solid demand is driven by genuine homebuyers,” he said.