Sha Tin land prices down 18pc in two weeks

A tender for a luxury residential site in Sha Tin's Kau To has fetched 18 per cent less per square foot than an adjacent site sold two weeks ago, the Lands Department said yesterday.

It shows developers are pessimistic about the market's outlook under the influence of the government's cooling measures, particularly in the luxury residential market, said Alnwick Chan Chi-hing, head of valuation and professional services at property consultant Knight Frank.

The department said the Kau To site had been sold to the consortium of Paliburg Holdings and Regal Hotels International for HK$2.39 billion or HK$6,837 per square foot.

The adjacent site was sold to the consortium of Kingboard Chemical Holdings and Chun Wo Development for HK$2.71 billion or HK$8,382 per square foot this month. Because that price was at the lower end of market expectations, surveyors had cut their expectations for the new site by more than 10 per cent.

However, the land price was 18 per cent less than the adjacent site and at least 9 per cent less than market expectations.

"Despite the higher development density of the new site, the price difference should not be that much," said Vincent Cheung Kiu-cho, greater China director at Cushman & Wakefield.