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A general view of the Kai Tak area on December 31, 2016: Photo: Bruce Yan

Update | Kai Tak residential site ‘Area 1L Site 1’ attracts 18 bids from developers

Eighteen developers have submitted bids for the government tender of a residential plot in Kai Tak area before the deadline on Friday, according to the Lands Department.

Surveyors are projecting the site, known as Kai Tak Area 1L Site 1, could be worth HK$4.6 billion to HK$5 billion, or HK$10,000 to HK$12,000 per square foot.

A general view of Kai Tak area. Photo: Bruce Yan

“The response is within expectation. It shows the policy speech has had limited impact on the property market,” said Thomas Lam, senior director of Knight Frank.

The site, could yield a total gross floor area of 425,000 sq ft, is located adjacent to the one sold to Poly Property Group for HK$6.53 billion, or HK$6,530 per sq ft in 2014.

It is the 10th site offered by government tender since 2013.

Land prices in Kai Tak, designated to become the city’s second core business district, have surged 164 per cent after Chinese conglomerate HNA won its second residential site for HK$5.41 billion, or HK$13,600 per sq ft in December. It also secured its first residential site for HK$8.84 billion, or

HK$13,500 per sq ft in November.

Meanwhile, Lands Department announced a residential site at Lee Nam Road, Ap Lei Chau will open for tender from Friday. The site, could yield a total gross floor area of 763,091 sq ft, worth HK$11.4 billion, or HK$7,500 per sq ft, according to surveyors.

The tender will close at noon on February 17.