CK Asset won a tender for a parcel of land in Tuen Mun for a price lower than market expectations after an earlier tender – the first subject to the government’s minimum flat-size requirement – failed to attract any satisfactory bids in April. The flagship developer of tycoon Li Ka-shing’s family won the parcel on Castle Peak Road – Tai Lam, Tuen Mun in northwestern Hong Kong for HK$4.6 billion (US$586 million), the Lands Department said on Wednesday. Henderson Land Development Company, Sino Land, Grand Ming Group Holdings and Sun Hung Kai Properties also bid for the parcel. The price translates to just HK$3,522 per square foot, “slightly lower than the lower limit of market expectations”, according to Midland Surveyors. When it was first launched in April, Knight Frank valued the land at HK$6,000 to HK$6,500 per square foot, or HK$7.8 billion to HK$8.5 billion. In July, Knight Frank slashed the valuation to HK$5,000 to HK$5,500 per square foot, or HK$6.5 billion to HK$7.2 billion. “The size of the land and the amount of investment are relatively large,” said Alvin Lam, director at Midland Surveyors. The land can yield 1.31 million sq ft of gross floor area and at least 2,000 flats, Lam said. The tender in April attracted only five bids, none of which met the government’s reserve price . The now successful tender shows that the government is adapting to market changes and adjusting the reserve price according to market conditions, which can also ensure future housing supply, added Lam. All private flats built in Hong Kong must be at least 280 sq ft in future “Coupled with the recent market conditions, developers are expected to be more cautious in their bids,” Lam said. Last December, the Hong Kong government set a 280 sq ft minimum size for flats built on government land. The relaunch of the Tuen Mun site “in a short time” after the original tender failed, “reflected the government’s determination to let the people live in bigger homes”, think tank Our Hong Kong Foundation said in July. Chinese President Xi Jinping instructed John Lee Ka-chiu, Hong Kong’s Chief Executive, on the 25th anniversary of the city’s handover to China, that his administration should “strive to deliver” what “the people of Hong Kong desire – a better life, a bigger flat, more business start-up opportunities, better education and better elderly care”.