Hong Kong’s Urban Renewal Authority withdraws Kwun Tong land sale that drew only 1 bid amid pessimistic outlook

It is the second withdrawal of a land sale this year as developers’ appetite for new projects remains suppressed

Market watchers had anticipated the rejection of the sole bid for the 25,595-square-metre site

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The Kwun Tong Town Centre Development Areas 4 and 5 Project site in Kwun Tong, pictured in August 2022. Photo: Jonathan Wong

Daniel Renin ShanghaiandLam Ka-singin Hong Kong

Published: 7:30am, 3 Feb 2023Updated: 7:33am, 3 Feb 2023

Hong Kong’s Urban Renewal Authority (URA) rejected a tender for a plot of land in Kwun Tong, the second withdrawal of a land sale in Hong Kong this year as developers’ appetite for new projects remains suppressed amid weak market sentiment.

Property market watchers had anticipated the withdrawal given that the government received only one bid for the 25,595-square-metre site.

“The URA Board, having considered the recommendation provided by the Tender Review Panel, set up under the URA Board, after careful deliberation of the submission made by the tenderer, endorsed the recommendation to reject the tender,” the authority said in a statement on Thursday.

The failed sale follows the withdrawal of a sale in Hong Kong’s southern Stanley district on January 10 because the four received bids – fewer than market expectations – failed to meet the reserve price.

A plot on Cape Road in Stanley that failed to attract sufficient bids in January is the area’s biggest parcel of residential land in two decades. Photo: Shutterstock

“Developers do not like long-term investment projects,” said Alex Leung, senior director at CHFT Advisory and Appraisal. “It is advisable to redesign the usage of the Kwun Tong land plot so that more [residential] flats can be built for citizens.”

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