Hong Kong’s top developers shun Shouson Hill tender as luxury property becomes ‘hot potato’ amid US-China tensions

Only Li Ka-shing’s CK Asset is known to have submitted a bid for 37 Shouson Hill property when tender closed on July 31, according to a survey by the Post

Multiple offers were received and are being evaluated, US Consulate General spokesperson says, without disclosing the number

Reading Time:3 minutes

An aerial view of 37 Shouson Hill Road, comprising six multistorey mansions, overlooking Deep Water Bay. Photo: Martin Chan

Published: 5:45am, 11 Aug 2020Updated: 1:11pm, 12 Aug 2020

Many of Hong Kong’s biggest property tycoons are staying out of a keenly watched residential property sale by the US government to “stay onside”, as the asset becomes a “hot potato” amid worsening US-China relations.

Li Ka-shing’s CK Asset Holdings, the city’s second-largest developer, submitted an offer for 37 Shouson Hill Road, the company said in an email reply, which is among multiple offers received by the US government at the close of the tender on July 31. Sun Hung Kai Properties, the city’s biggest, declined to comment on its position.

New World Development, Henderson Land, Wheelock and Co, Swire Properties, Nan Fung group, Kerry Properties, Chinachem and Far East Consortium gave the sale a miss, according to executives surveyed by the South China Morning Post since bidding ended. The Sino Group, controlled by Singapore’s second-richest family, did not immediately reply to requests for comment.

The US government put the six blocks of multistorey mansions in the exclusive neighbourhood overlooking Deep Water Bay on the market on May 30, a rare plot that analysts estimate to be worth between HK$3.2 billion (US$412.8 million) and HK$3.5 billion.

The US government invited bids for six multistorey mansions at 37 Shouson Hill Road in late May. Photo: Edmond So

While the decision to put the luxury property up for sale were in planning stages for some months, the tender was called three days after China proposed a national security law for Hong Kong, which eventually came into force on June 30.