Hong Kong’s tender for a rare land site on The Peak receives ‘unenthusiastic’ response of just five bids

A luxury residential site on The Peak received just five bids from property developers, reflecting a cooling appetite for risk as market sentiment continues to soften amid the worsening US-China trade war, rising financing costs and a sharp decline in the stock market, according to one expert.

Thomas Lam, executive director of Knight Frank, said the large scale of the site, and the funds ­required to adequately develop it, combined with the availability of other upcoming tenders, were among the reasons only a handful of bids were received despite the rarity of the land.

“The response was not enthusiastic because of the scale of ­development and the cost,” he said. “Headwinds such as the US-China trade war and the vacancy tax, which will increase holding costs, are also in play.”

The Lands Department said the five bids were received by the noon deadline on Friday.

Four of the bids were submitted by major Hong Kong developers, including Sun Hung Kai Properties, Henderson Land Development, CK Asset Holdings and K Wah International. One of the bids represented a consortium consisting of New World Development, Nan Fung Development, Chinachem Group, China Overseas Land & Investment and Wharf (Holdings).

Lam said property developers had alternative options among upcoming land tenders, including the second phase of Ho Man Tin Station and Kai Tak, the site of the former airport.