<div id="readability-page-1">The Hong Kong government’s first land sale in the current financial year has drawn six bids, according to the Development Bureau, including those from the city’s largest developers, suggesting a more confident outlook for the residential property market. At the close of tender for Tung Chung Town Lot No 54 at Area 106A on Friday noon, Sun Hung Kai Properties (SHKP) submitted a solo bid, while Kerry Properties and Sino Land submitted a joint offer, the groups separately confirmed to the South China Morning Post. The parcel, measuring 14,152 square metres, is expected to yield about 990 residential units. Consultancy CBRE estimated its value at HK$960 million (US$122.6 million). Vincent Cheung, managing director at Vincorn Consulting and Appraisal, put the site’s value at HK$1.5 billion, equivalent to about HK$2,820 per square foot based on the maximum gross floor area of 533,160 sq ft. “The site benefits from a waterfront setting and proximity to the future Tung Chung East MTR station,” said Eddie Tsui, senior director for valuation and advisory services at CBRE Hong Kong. “Together with nearby developments such as Century Link and The Visionary, this provides a solid pricing reference and supports its long-term residential appeal.” Tsui added that the district remained in an “early-stage ‘pioneering’ phase”, with value uplift depending on infrastructure-led maturation. CBRE’s valuation indicated modest upside compared with the adjacent 106B site sold to SHKP in early 2025 for HK$602 million. The wide valuation range reflected continued caution, given sensitivities to geopolitical tensions, construction costs, interest rates and primary market competition. The government has sold three other residential plots in recent months. In January, a joint venture between Sino Land and Great Eagle Holdings won a 41,226 sq ft site in Jordan Valley for HK$1.61 billion. In early February, Hong Kong-listed mainland Chinese developer China Overseas Land &amp; Investment (Coli) secured a 3,132 square metre residential plot in Ngau Tau Kok, Kowloon East, for HK$1.8 billion. Later that month, Kerry Properties won a 1,349 square metre residential plot in Shau Kei Wan for HK$1.38 billion. Additionally, a consortium led by Sino Land, alongside Coli, China Merchants Land and Great Eagle Holdings, won a tender by MTR Corporation for the Kam Sheung Road Station Phase Two development late last month. The site sits within the Northern Metropolis, a flagship initiative aimed at strengthening Hong Kong’s economic base and deepening integration with the Greater Bay Area. The consortium plans to invest more than HK$13 billion to build high-quality residential projects that align with the area’s infrastructure and industrial planning. With developers actively replenishing their land banks, S&amp;P Global Ratings warned that intense bidding could test their financial discipline as they sought to acquire plots at a “noticeable premium”. The credit-rating agency said winning bids for four recent tenders came in above the upper end of market estimates by between 7 and 38 per cent. Other analysts, however, said the renewed confidence was warranted, given robust housing demand. For example, of the three urban sites tendered so far this year, winning bids only exceeded the closest rivals by 1 to 9 per cent, reflecting the competitive nature of government land sales, according to Jack Tong, director for research and consultancy at Savills Hong Kong. </div>

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<p>The Hong Kong government's first land sale of the financial year attracted six bids, indicating renewed confidence in the residential property market. Sun Hung Kai Properties submitted a solo bid for Tung Chung Town Lot No 54, while Kerry Properties and Sino Land made a joint offer. The site, expected to yield around 990 residential units, has an estimated value of HK$960 million. Analysts suggest the competitive bidding reflects strong housing demand despite ongoing market caution.</p>

6 bids for Hong Kong land sale signal renewed confidence despite market caution