Mainland Chinese developers, emboldened by the new security law , will become more active buyers of Hong Kong land as local firms back off amid political turmoil and recession, surveyors predict. The forecast came as a mainland-based consortium won a parcel of land in Tai Po earmarked for over 1,000 “mid-to-low density” flats. It was the second plot to go to mainland developers this month following Beijing’s imposition of the new national security law in Hong Kong. The consortium formed by Vanke Property (Hong Kong) and real estate company CNQC International Holdings agreed to pay HK$3.71 billion (US$478.69 million) for the site on Ma Wo Road in northern Hong Kong, the Lands Department said on Wednesday evening. CNQC is the Hong Kong-listed unit of Qingjian Group, based in Qingdao in mainland China, while Vanke Property is a subsidiary of the mainland property behemoth China Vanke . The winning consortium, called Wealth Honour Limited, was one of four potential buyers with capital from mainland China in a tender process that attracted 13 bids in total. That is slightly higher than would normally be expected for a Hong Kong land sale. “Local developers have become more conservative” amid political uncertainty and the recession brought on by the coronavirus crisis, increasingly giving way to mainland-based firms, said Alex Leung, senior director at CHFT Advisory and Appraisal. “Mainland [companies] will definitely be more active and have a high success rate at tender,” Leung said. “Politically, mainland-based developers will not back off because they think the national security law will stabilise [the city]. They think the law is good, though the price offered is not too ambitious.” The winning bid, which equates to HK$4,738.5 per square foot, was roughly in the middle of valuations that ranged from HK$2.7 billion to HK$4.57 billion, Leung’s being the highest estimate. Surveyors had slashed their earlier valuations for the parcel by up to 29.1 per cent after the Covid-19 pandemic crippled the economy. For instance, James Cheung, executive director at Centaline Surveyors, cut his estimate from HK$5.5 billion in late February to HK$3.9 billion in mid June. The site, measuring 243,352 sq ft, can yield 781,896 sq ft, the size of about seven football pitches. It can accommodate 1,000 to 1,200 flats, mainly two- to three-bedroom units that will sell for at least HK$14,000 per sq ft, according to Thomas Lam, executive director at Knight Frank. Vanke said it would invest HK$8 billion to HK$9 billion to develop the site. It added it would “continue to increase land bank through different channels to support growth as the housing market grows steadily”. The Ma Wo Road tender came after China Mobile outbid eight rivals to pay a record price for an industrial site good for data-centre use in Sha Tin, New Territories, in the first government land sale since the adoption of the national security law early this month. Developers use forced auctions to snap up Hong Kong’s older buildings for redevelopment amid city’s land shortage Lam also believes mainland-based developers will try to snap up more land in Hong Kong, going forward. “Investment opportunities have actually increased amid the current market scenario,” said Lam. “Some mainland developers might have had their projects completed or sold, so need to replenish their land banks and develop new projects.” Developer CK Asset wins Hong Kong’s first plot of land earmarked for private and subsidised starter homes for lowly HK$4.9 billion as Covid-19 batters property market