Kowloon East site attracts nine bids as Hong Kong housing outlook brightens

Hong Kong’s tender for a 3,132 square metre (33,712 sq ft) residential plot in Ngau Tau Kok, Kowloon East, has drawn nine bids, according to the Development Bureau.The site was estimated to be worth as much as HK$1.55 billion (US$198 million), according to real estate services provider CBRE.Sun Hung Kai Properties, Henderson Land Development and CK Asset Holdings submitted bids individually, while Sino Land and Great Eagle Holdings made a joint offer, the groups confirmed separately on Friday.The residential site on Choi Ha Road, close to the Kowloon Bay MTR station and the private housing estate Amoy Gardens, was expected to yield 470 residential units, according to a previous government statement.“With comprehensive surrounding amenities, the site has a certain appeal to end-user housing demand,” said Eddie Tsui, senior director for valuation and advisory services at CBRE Hong Kong. “Amid an improving residential market sentiment, developers are expected to show relatively active interest in the tender.“Considering the site’s locational advantages, prevailing market conditions and development risks, the site’s reasonable land value is estimated to range between HK$1.3 billion and HK$1.55 billion, equivalent to around HK$4,400 to HK$5,100 per square foot of accommodation value.”Home prices are forecast to rise up to 8 per cent in 2026, according to property agencies. Photo: Eugene Lee