The overwhelming response to the tendering of three Kai Tak residential sites reflects developers' keen interest in acquiring plots in urban areas.
The Lands Department said yesterday it received a total of 28 bids for the three residential sites. The biggest site with a better view attracted the best response, with 12 bids. The other two sites received seven and nine bids each.
The valuations of the sites range from HK$7.52 billion to HK$9.53 billion, or HK$4,500 and HK$5,700 per square foot.
"The market response is good because the sites are located in the urban area and are without 'Hong Kong property for Hong Kong people' conditions," said Alvin Lam, a director at Midland Surveyors, referring to flats that can only be sold to Hong Kong permanent residents. He added that these factors could "lower the risk in property sales".
However, he believes offers made by developers would still be conservative due to weakening market sentiment and increased land supply.
Major developers such as Cheung Kong (Holdings), Henderson Land and K Wah International joined the bidding for all three sites, as well as mainland developer Poly Property.