Hong Kong real estate: Sun Hung Kai, Wheelock and CK Asset submit bids for Sha Tin plot

Top Hong Kong developers have submitted bids for a government land tender in the New Territories, but experts believe the response could be tepid due to high inventory levels and rising construction costs.

The tender for the only residential land that will go on sale in the second quarter of the current financial year closed at 12 noon on Friday. The Lands Department said it had received a total of six bids.

Five developers have confirmed they have submitted bids: Sun Hung Kai Properties (SHKP), Wheelock Properties, Chinachem Group, CK Asset Holdings and Sino Land.

The site, known as STTL 625 – located at the intersection of Sha Tin Wai Road and Siu Lek Yuen Road – covers an area of ​​5,652 square meters (60,837 square feet). A total of 570 units can be delivered.

“The bidding was lukewarm,” said Kathy Lee, head of research at Colliers. “A major problem is that developers are still holding significant inventories and remain focused on selling their current inventory. Combined with high construction costs, some developers remain cautious when bidding for new sites.”

Midland Surveyors estimated the site’s valuation at HK$1.07 billion based on a land premium of HK$3,500 per square foot.