Hong Kong receives 10 bids for Kwu Tung plot in Northern Territories from optimistic but cautious developers
- Kwu Tung will be the main source of land in the short to medium term: CHFT Advisory And Appraisal executive
- Site ‘a good location to take advantage of the Greater Bay Area’, developer Chinachem says
The first parcel of land in the Kwu Tung area of Hong Kong’s northern New Territories has attracted 10 bids from local and mainland China-based developers.
The tender gets the government’s Kwu Tung North and Fanling North New Development Area off to a good start after years of planning, although the bids are likely to be cautious, analysts said.
“Kwu Tung will become the main source of land in the short to medium term,” said Alex Leung, senior director at CHFT Advisory And Appraisal. “It is still in the early stages of development, and the land in the area still lacks a benchmark price. I believe that the bids will generally be cautious.”
The plot could help alleviate Hong Kong’s severe housing shortage. The Kwu Tung North and Fanling North New Development Area covers about 612 hectares. It can accommodate about 188,100 people and create about 40,100 new jobs, according to the Development Bureau. Its development was announced during the 2007-08 Policy Address, among 10 major infrastructure projects.
The companies bidding on Friday included Sun Hung Kai Properties, CK Asset Holdings, Henderson Land Development, Chinachem Group, Great Eagle Holdings, Kowloon Development Company and Chinese Estates Holdings. A joint venture of Wheelock Properties and Far East Consortium (FEC) as well as a consortium comprising Kerry Properties, Sino Land, New World Development and K Wah International submitted bids as well. Mainland China-based developers Kaisa Group and Vanke Holdings (Hong Kong) also submitted a bid jointly.
