Price expectations slashed for Tseung Kwan O waterfront site in Hong Kong
They estimate the site to the south of Evangel College will fetch between HK$3.34 billion and HK$4.1 billion, or HK$3,900 and HK$4,800 per sq ft when tenders close on Friday.
Surveyors slashed price expectations for the tender of a Tseung Kwan O waterfront site by up to 15 per cent after an adjacent site sold for the lowest price in the area in more than three years.
They estimate the site to the south of Evangel College will fetch between HK$3.34 billion and HK$4.1 billion, or HK$3,900 and HK$4,800 per sq ft when tenders close on Friday.
Alnwick Chan Chi-hing, executive director at consultant Knight Frank, said the waterfront site was better than an adjacent plot bought by Chinachem Group last week for HK$3 billion - or HK$3,653 per sq ft - the lowest in the area since February 2010.
"I believed this site would fetch HK$3.85 billion, or HK$4,500 per sq ft. But the nearby site was sold to Chinachem at a disappointing price last Tuesday and so I have cut my expectation on the latest site to be tendered to HK$3.42 billion, or HK$4,000 per sq ft," he said.
"Developers will bid conservatively as property sales are not active and there have been 11 sites sold in Tseung Kwan O since February 2010.
"The market outlook is not optimistic as interest rates may rise in the coming year. And property prices will be put under downward pressure when an increased housing supply comes on stream in 2015."