The US Federal Reserve’s decision to raise interest rates on Thursday failed to dampen developers, who have responded with gusto to the government’s tender of two sites.
The Lands Department said it had received 11 bids for a residential site in Tuen Mun’s So Kwun Wat and nine bids for a commercial site in Yuen Long.
“The response indicates the rate hike has had limited impact on developers’ acquisition plans,” said James Cheung, a director at Centaline Surveyors.
But in spite of the encouraging response, Centaline has revised down the valuation of the site by 11 per cent as the plot faces a potential judicial review that could stall its sale.
Victor Lai Kin-fai, chief executive of consultancy Centaline Professionals, said he has revised downward the estimated valuation to HK$4,000 per square foot from the original HK$4,500 per sq ft.