The government's residential site on Fat Kwong Street, Ho Man Tin, received at least 10 tenders when submissions closed at noon on Friday, including Chinachem, K. Wah International (0173), Sino Land (0083), China Overseas (0688), and Poly Property (0119).
The project is near the luxury development Ultima, Ho Man Tin Park and the service reservoir, as well as the ventilation building for the Central Kowloon Bypass. It has a buildable gross floor area of nearly 208,000 square feet and is expected to provide about 250 units.
Solo bidder Quinly Wan, K. Wah International business development (Hong Kong Properties) general manager, said it is a rare urban luxury residential site with excellent views and transport links, and that its bid would reference transactions of nearby properties.
She believes the property market will develop steadily, given that Hong Kong banks have not followed suit with the US Federal Reserve's recent rate hikes, and the primary market has improved in recent months.
Based on market estimates, the project is valued at between about HK$1.87 billion and HK$2.81 billion, or about HK$9,000 to HK$13,500 per square foot of gross floor area.
Alvin Lam Tsz-pun, director at Midland Surveyors, said the project's moderate development and investment scale attracted different types of developers. He added that the site is in a traditional luxury residential district with rail connectivity, and that urban projects tend to be well received by the market.
He expects developers' bids to factor in the interest rate outlook and reference pricing at nearby new developments.
