"HK Property" Midland Survey: The transaction price of residential land in Shau Kei Wan far exceeds market expectations, and developers are confident about the future market

The Lands Department announced that the small to medium-sized residential site on Shau Kei Wan East Street was awarded for approximately HKD 1.384 billion after receiving 8 bids, with a floor area price of about HKD 10,589 per square foot, significantly higher than market expectations. Lam Tsz Bun, director of Midland Surveyors, stated that the project is relatively small in scale, classified as a small to medium-sized project in the urban area, located in the city center and near the MTR station, with mature living facilities in the area and considerable development potential. Additionally, the recent property market has become increasingly active, with strong sales performance in primary market projects, absorbing a significant amount of supply. As a result, many developers have become more proactive in acquiring land reserves, and this time the developers' bidding can be considered quite aggressive, reflecting their strong confidence in the future market.

The residential site at Lot No. 860 on Shau Kei Wan East Street has a land area of approximately 14,523 square feet. Assuming a plot ratio of about 9 times, it is estimated that the maximum buildable floor area could reach 130,696 square feet. Coupled with its proximity to the Shau Kei Wan MTR station, convenient transportation, and mature daily living facilities in the area, the development potential is substantial. It is expected to be well-received in the market upon completion, and with the current land price exceeding HKD 10,000 per square foot, it will also serve as a benchmark for the local property market.

Lam Tsz Bun anticipates that the project is suitable for building small to medium-sized units that are popular in the market, offering one-bedroom or two-bedroom layouts, which can meet the market demand for small units in the urban area, providing a certain guarantee for project sales