Hong Kong developer Sino Land wins Kai Tak land tender with a US$676 million bid, a nine year-low, beating a crowded field of rivals

Bids were also submitted by Sun Hung Kai Properties, CK Asset Holdings, Wheelock Properties, Nan Fung Group and Henderson Land this Monday, the last day of the tender period. The parcels of land, with an aggregate area of 145,303 sq ft, are located in Kai Tak, the site of Hong Kong’s former international airport. They went on sale by public tender on July 28.

James Cheung, executive director at Centaline Surveyors, said the HK$5,392 per square foot land price was close to market expectations, but was a nine-year low compared to other land prices in the same district.

Analysts said given the level of the winning bid, the developer could still sell the housing units when construction is completed at current prices, should the economic environment show no improvement and were the property market to remain sluggish.

“There’s enough cushion for the developers to sell their project at a good price,” said Vincent Cheung, managing director of Vincorn Consulting and Appraisal, a property advisory firm. “As for government coffers, yes the government may have a deficit but it should not be confused with a negative cash flow.”