Centaline Surveyors Highlights Chinachem's Bold Move in Hong Kong's Residential Market

Centaline Surveyors Highlights Current Trends in Hong Kong's Property Market

Chinachem Group made headlines with its US$131 million bid for a government land tender in Sha Tin, according to Centaline Surveyors. The land bid was won by Keen Mighty Limited at a price that meets market expectations amid a climate of subdued sentiment in land bidding.

The bid of HK$1.02 billion for the 5,652-square-metre site, located at the junction of Sha Tin Wai Road and Siu Lek Yuen Road, translates to HK$3,357 per square foot. This pricing is aligned with prevailing market anticipations ranging from HK$3,100 to HK$4,000 per square foot.

Competitive Landscape for STTL 625 Lot

Other major developers such as Sun Hung Kai Properties (SHKP) and Sino Land also vied for the STTL 625 lot, underscoring competitive interest. However, Alvin Lam, director at Midland Surveyors, noted the 15 percent decrease compared to SHKP’s earlier bid for a smaller plot.

• Chinachem received the lot in a round of bids aimed at revitalizing the Sha Tin area.
• The lot can accommodate around 570 residential units, yet requires a careful assessment considering proximity to noise sources.

Market Sentiment and Price Trends

Recent data reveals a 1.7 percent drop in Hong Kong’s home prices, marking the continued decline of 12.5 percent over the past year. As the lingering effects of interest-rate cuts take root, developers are exhibiting caution in land acquisitions, with diversifying strategies becoming essential.

Midland Surveyors reaches a cautious conclusion on the recovery in bidding sentiments which might rely heavily on the future outlook of the property market, with optimism tied to an anticipated turnaround.