Strong interest in Tuen Mun residential sites

PUBLISHED : Friday, 15 August, 2014, 1:50pm
UPDATED : Saturday, 16 August, 2014, 12:45am

There was strong interest in yesterday's tender sale of two small residential sites in Tuen Mun, with 51 bidders when the tenders closed at noon, the government said.

A 12,637 square foot site in Yan Ching Street attracted 27 bidders, it said, while another waterfront, low-rise, luxury residential site in Lok Chui Street drew 24 bidders.

The strong bidding interest came as Hong Kong's secondary home prices continue to hit record highs.

The Centa-City Leading Index, created by Centaline Property Agency to monitor home prices in the secondary market, reached 125.66 yesterday, surpassing the previous record, set last week, of 124. Before that the previous peak was 123.66, set in March last year.

Hong Kong Island prices rose 1.23 per cent week on week, while Kowloon prices were up 1.86 per cent and those in New Territories East up 0.76 per cent. Home prices in New Territories West remained largely unchanged, with an increase of just 0.13 per cent.

In light of the positive sentiment, the two sites in Tuen Mun attracted developers including Henderson Land Development, Sino Land, Hon Kwok Land Investment, Far East Consortium International, Wang On Group, Paliburg and Regal joint venture Chuang's China Investments, HKR International, K & K Property and Tai Hung Fai Enterprise.

Surveyors' firm AG Wilkinson & Associates said it expected the government would generate HK$460 million from the sale of the two sites.

It estimated the site in Yan Ching Street to be worth about HK$320 million, or HK$3,976 per square foot.

The site in Lok Chui Street, which could generate a total gross floor area of 13,487 sq ft, could fetch bids starting at HK$140 million, the company added.