Land prices in the New Territories are expected to fall further
A large residential site in Tai Po was bought at about 20 per cent less than an adjacent one sold in September last year.
Land prices in the New Territories are expected to fall further after a large residential site in Tai Po sold for HK$3,620 per square foot, about 20 per cent lower than the adjacent one sold in September last year.
The Lands Department on Tuesday said the tender for the site at Chong San Road, Pak Shek Kok was awarded to Billion Real Estate Holdings with its highest bid of HK$4.02 billion.
The price means land values have dropped 20.73 per cent in eight months after the Lands Department sold another residential site in Pak Shek Kok to K Wah International for HK$4,567 per square foot in September.
“It will definitely add downward pressure on upcoming land sales in the New Territories and provide large supply in the area,” Victor Lai Kin-fai, the chief executive of consultancy Centaline Professionals, said.
In 2009, another Pak Shek Kok site sold for a record HK$7,284 per square foot.
Yesterday’s sale was also five to 10 per cent below market expectations. Surveyors had already lowered their estimate to HK$4.2 billion to HK$4.45 billion, or HK$3,800 to HK$4,000 per square foot because the view from any buildings will be blocked by future developments.
Alvin Lam, a director at Midland Surveyors, said the low prices for the latest site reflect developers’ cautious view about the market outlook.
