Scenic site at Kai Tak draws fewer than expected bids from property developers
- Six bids received for the fourth residential plot at city’s former Kai Tak airport
- Surveyors expect the 117,900 square foot plot to fetch HK$10.4 billion (US$1.66 billion) to HK$13 billion
The response to the tender of the fourth residential land parcel at the city’s former airport in Kai Tak missed analyst estimates on Friday, with slightly fewer developers than expected submitting bids, reflecting downbeat sentiment as home prices come under further pressure.
The 117,900 sq ft plot, located on land jutting out into Victoria Harbour on what was the former airport runway, fetched six bids at the closure of tender at noon Friday, falling short of Knight Frank’s expectation of seven to 10 bids.
Thomas Lam, executive director at Knight Frank attributed the result to the large scale of development and negative economic and political factors affecting the outlook.
“The land still lacks transport infrastructure and amenities,” said Lam. “The US-China trade war and policies like the [proposed] vacancy tax will also affect the price offered.”
The site, said by some analysts to be the most scenic on the former landing strip, was estimated by surveyors ahead of the tender as potentially fetching up to HK$13 billion (US$1.66 billion).