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.” Fewer developers submit bids for Kai Tak runway plot even as valuation is slashed to January 2017 levels 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). The response came as the Centa-City Leading Index, the home price index compiled by Centaline Property Agency, dropped 1 per cent for the week ended January 13 to 170.19, which is down 9.8 per cent from the record 188.64 for the week ended August 12 last year. Developers that submitted bids include Sun Hung Kai Properties, CK Asset Holdings, Kerry Properties, and a joint venture between K Wah International and Sino Land. The consortium comprising Wheelock Properties, China Overseas Land & Investment, Chinachem Group, Empire Group, Henderson Land Development and New World Development also submitted a bid. An additional bid was submitted by an unidentified developer. Hong Kong reports the worst sales weekend in years as private launches fail to keep up with government’s discounted housing “The plot is near the cruise terminal and can accommodate a relatively large project,” said Alvin Lam, director of Midland Surveyors. “As it enjoys the frontal sea view of Victoria Harbour, it is the most eye-catching among all the residential plots in Kai Tak.” “The price per square foot of the plot could be the highest in the runway area,” he said. James Cheung, executive director at Centaline Surveyors, said the site would benefit from major infrastructure works, such as the expansion of the MTR link from Sha Tin to Central. The plot is expected to fetch HK$10.4 billion to HK$13 billion, or HK$16,000 to HK$20,000 per sq ft, according to the three surveyors. At a plot ratio of about 5.5 times, the plot can be developed for a gross floor area of 648,600 sq ft. The development will require an investment of HK$16 billion to HK$18 billion to create luxury flats that are likely to fetch more than HK$29,000 per square foot, according to Knight Frank. Tsuen Wan, Tseung Kwan O and Kai Tak – three districts where renters can find cheap bargains The lacklustre response for the Kai Tak site pointed to downbeat market sentiment before this weekend’s sale of 759 flats. On Saturday, China Overseas Land & Investment will offer 486 flats at The Regent in Tai Po, while 155 flats will be offered at Downtown 38 in Ma Tau Kok, a development by Sun Hung Kai Properties. Meanwhile Wing Tai Properties will offer 118 flats at The Carmel in Tuen Mun on Sunday.