Tenders for luxury residential sites in Tai Po and Sai Kung draw 24 bidders

Most developers prefer to go solo for Tai Po plot while Sai Kung site lures small players

PUBLISHED : Saturday, 08 March, 2014, 1:40am
UPDATED : Saturday, 08 March, 2014, 1:40am

The tenders for two luxury residential sites in Tai Po and Sai Kung attracted a total of 24 bidders yesterday.

A spokesman for the Lands Department said it received seven bids for the site in Tai Po's Pak Shek Kok and 17 bids for the small residential plot in Sai Kung.

"The response to the Tai Po site is not bad. But fewer developers have teamed up to bid for the site, compared with the bidding for nearby sites in 2009," said Vincent Cheung Kiu-cho, national director for Greater China at property consultant Cushman & Wakefield.

The site attracted Cheung Kong, Sino Land, New World Development, Wheelock Properties and the consortium of Paliburg and Regal Hotels International to the bidding.

In 2009, Sino Land, KWah International, Wing Tai Properties and Nan Fung Development formed a consortium to acquire areas in Pak Shek Kok that were auctioned and released for sale for the first time. The sites have been developed into Providence Bay, a luxury residential project.

"There were fewer consortiums [yesterday, which meant] developers have different views on the market and development risks," Cheung said.

He believes the offers for the site will be cautious as there is still plenty of new housing supply in the area in coming years. "Properties at the site could achieve HK$15,000 per square foot, similar to the new flats in the area currently," he said.

The Tai Po site covers an area of 204,516 square feet, where the winning bidder could build homes with a total gross floor area of 715,806 sqft. Surveyors estimate the site is worth between HK$3.57 billion and HK$5.01 billion, or HK$5,000 to HK$7,000 per square foot.

They believe the plot in Sai Kung is worth between HK$96 million and HK$120 million, or HK$12,000 to HK$15,000 per square foot.

The site attracted more small and medium-sized developers such as Chuang's Consortium, Emperor International and the consortium of Paliburg and Regal Hotels.

Midland Surveyors director Alvin Lam said: "The site is small and located in a luxury residential area. That's why [it] attracted many small developers."