HONG KONG (XFN-ASIA) - Sun Hung Kai Properties said its unit Good Venture Ltd won the Tsuen Wan site in today's government land auction with a bid of 53 mln hkd.
The final auction price represents a 77 pct premium to the minimum asking price of 30 mln hkd for the site, exceeding market expectations.
Analysts had expected the site to fetch up to 43 mln hkd.
The 22,300 square foot residential site, located at Tsing Lung Tau, can be developed to produce a gross floor area of up to 8,938 sq ft.
Sino Land and Wang On Group's unit Wang On Properties were among those who participated in the bidding.
Lands Department assistant director GM Ross said the auction result is very satisfactory, with the aggressive bidding reflecting strong market demand.
Ross said the final price can be used as a reference for setting reserve prices for other sites in the government's current land application list, but the result is not expected to impact significantly on the property market.
Under the government's application list scheme, any party interested in buying a plot of developable land in a list, released by the government every year, must present a purchase price.
If the purchase offer meets 80 pct of the government's undisclosed reserve price, the Lands Department will then offer that site for public sale and disclose the government's reserve or minimum asking price.
Ross said that it is too early to estimate whether the government can meet the land sales revenue target of 30.5 bln hkd for the current fiscal year ending in March 2007.
At the last auction in July, Chan Shu-kit, chairman of Tack Hsin Holdings, paid 30.5 mln hkd for a residential site on Lantau Island, more than double the minimum price of 14.46 mln hkd.
Vigers Appraisal & Consulting Ltd executive director Tony Chan said the fact that a major developer has bid in today's auction despite the relatively small size of the plot reflects the tight land bank situation being faced by many firms.
'It seems that developers would not giving up any chances to replenish their land banks even if the site is small, ' Chan told XFN-Asia.
Chan expects the winning bidder to develop boutique luxury housing project on the site and the completed project can fetch 9,000-10,000 hkd per square foot.
Chan said the auction result will likely to boost the secondary property prices in the western part of New Territories, though it will not be very indicative for the entire property market trend.
Sino Land executive director Ip Sai Kwong, who had participated in the bidding, said the winning bid is reasonable. He said his company will keep looking for different kinds of sites in order to replenish its land bank.
Wang On Properties' sales and marketing manager Gary Wong said the government's current application list system for triggering land auctions works well and that his company will look for smaller sites.
(1 usd = 7.8 hkd)
roby.lau@xfn.com
rl/rc
The final auction price represents a 77 pct premium to the minimum asking price of 30 mln hkd for the site, exceeding market expectations.
Analysts had expected the site to fetch up to 43 mln hkd.
The 22,300 square foot residential site, located at Tsing Lung Tau, can be developed to produce a gross floor area of up to 8,938 sq ft.
Sino Land and Wang On Group's unit Wang On Properties were among those who participated in the bidding.
Lands Department assistant director GM Ross said the auction result is very satisfactory, with the aggressive bidding reflecting strong market demand.
Ross said the final price can be used as a reference for setting reserve prices for other sites in the government's current land application list, but the result is not expected to impact significantly on the property market.
Under the government's application list scheme, any party interested in buying a plot of developable land in a list, released by the government every year, must present a purchase price.
If the purchase offer meets 80 pct of the government's undisclosed reserve price, the Lands Department will then offer that site for public sale and disclose the government's reserve or minimum asking price.
Ross said that it is too early to estimate whether the government can meet the land sales revenue target of 30.5 bln hkd for the current fiscal year ending in March 2007.
At the last auction in July, Chan Shu-kit, chairman of Tack Hsin Holdings, paid 30.5 mln hkd for a residential site on Lantau Island, more than double the minimum price of 14.46 mln hkd.
Vigers Appraisal & Consulting Ltd executive director Tony Chan said the fact that a major developer has bid in today's auction despite the relatively small size of the plot reflects the tight land bank situation being faced by many firms.
'It seems that developers would not giving up any chances to replenish their land banks even if the site is small, ' Chan told XFN-Asia.
Chan expects the winning bidder to develop boutique luxury housing project on the site and the completed project can fetch 9,000-10,000 hkd per square foot.
Chan said the auction result will likely to boost the secondary property prices in the western part of New Territories, though it will not be very indicative for the entire property market trend.
Sino Land executive director Ip Sai Kwong, who had participated in the bidding, said the winning bid is reasonable. He said his company will keep looking for different kinds of sites in order to replenish its land bank.
Wang On Properties' sales and marketing manager Gary Wong said the government's current application list system for triggering land auctions works well and that his company will look for smaller sites.
(1 usd = 7.8 hkd)
roby.lau@xfn.com
rl/rc