Hong Kong’s top builders spot a bargain as they submit tenders for Kai Tak plot whose value has been slashed
- CHFT Advisory and Appraisal cut its estimates for the plot from between HK$4.25 billion and HK$4.5 billion to between HK$3.4 billion and HK$3.6 billion
- Market observers expect relatively conservative bids given the current social and economic climate.
The tender for a plot in Kai Tak on Friday attracted better-than-expected response as one surveyor cut the estimated value of commercial land on the site of Hong Kong’s former airport by up to 20 per cent after a high-profile sale was abandoned in June.
The Lands Department said on Friday that 10 developers submitted bids.
The Post found that the bidders included Sun Hung Kai Properties, CK Asset Holdings, Wheelock Properties, Sino Land, China Overseas Land& Investment, Great Eagle Holdings, Far East Consortium, K&K Property, submitted bids for the parcel near the proposed Kai Tak Sports Park.
The estimates from CHFT Advisory and Appraisal for the commercial plot, that can yield a gross floor area of up to 344,448 square feet, was slashed from between HK$4.25 billion (US$542 million) and HK$4.5 billion in mid-May to between HK$3.4 billion and HK$3.6 billion.
“The number of bidders is higher than expected,” said Thomas Lam, executive director at Knight Frank, whose valuation was even lower from HK$2.7 billion to HK$3.2 billion. “It is possible some developers submitted the bid to get bargains.”