Kwun Tong residential site attracts 25 bids despite concerns over infrastructure capacity
Analysts say response reflects city’s thirst for mid-sized land in urban areas
Developers’ enthusiasm for land tenders has shown no signs of easing – a residential site in Hong Kong’s Kwun Tong has attracted stronger than expected interest. But valuers said infrastructure in the region might not be able to support the extra population.
A total of 25 developers submitted bids before the tender closed on Friday noon, according to the Lands Department.
The lot, at the former Anderson Road Quarry in north Kwun Tong, has a site area of 57,631 sq ft. With a plot ratio of 4.5 times, it has a gross floor area of 259,341 sq ft. The estimated value of the tender ranges from HK$2.2 billion (US$281.4 million) to HK$3.37 billion, or HK$8,500 to HK$13,000 per square foot of gross floor area.
Analysts said the strong response reflected the city’s thirst for mid-sized land in urban areas.
“Land in urban areas has been in short supply. As the total investment of about HK$4 billion is not too high, and the land is in an urban area, the site fits the appetite of a lot of developers,” said Thomas Lam, head of valuations and consultancy at consultants Knight Frank.
But the area is near more than two public housing estates and the site that is designated for building “starter homes”, as revealed by Chief Executive Carrie Lam Cheng Yuet-ngor in her maiden policy address.