Four failed bids for Kwu Tung site exceeded $6b

Among the bid prices of developers who failed to secured a residential site in Kwu Tung, four exceeded HK$6 billion - the upper limit of market estimates, according to the Lands Department.

Sun Hung Kai Properties (0016) won the tender last month for the first residential site in Kwu Tung North which had been sold by government tender for HK$8.61 billion, or HK$7,183 per buildable square foot - 44 percent higher than the market estimate. Surveyors valued the plot at HK$4.8 billion to HK$6 billion.

Following SHKP, the nine tender amounts submitted by the unsuccessful bidders ranged from HK$4.07 billion to HK$8.21 billion, and the top four bidding amounts all exceeded the HK$6 billion mark.

The bidders included Great Eagle (0041), Kowloon Development (0034), Chinachem, Henderson Land Development (0012), Chinese Estates (0127) and CK Asset (1113), as well as three joint ventures. The site area is around 200,000 sq ft.

In the primary market, Henderson Land Development will offer 45 flats at The Upper South in Ap Lei Chau for sale on Sunday. The 45 flats, measuring between 183 sq ft and 264 sq ft, are priced between HK$4.27 million and HK$6.78 million, or HK$22,990 per sq ft to HK$27,058 per sq ft after discounts.