Plot of land in rural Kwu Tung draws strong response from Hong Kong developers betting on future housing demand, transport links

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The parcel of land in the rural northern New Territories could fetch up to HK$3.9 billion (US$500 million), or HK$8,000 per square foot, surveyors estimate

Twelve bids were submitted for the site in Hong Kong’s sparsely populated northern New Territories as developers vie for the city’s limited land supply

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The developers are betting on future housing demand in the sparsely populated northern New Territories once transport links have been completed. Photo: May Tse

Sandy Li

Published: 5:58pm, 23 Jul 2021Updated: 10:54pm, 23 Jul 2021

A medium-sized residential site in one of the least developed areas of Hong Kong has generated a strong response from developers vying to get their hands on some of the limited land available in the world’s most expensive property market.

Twelve bids were submitted for the site – called Area 24 – in the Kwu Tung area of Hong Kong’s northern New Territories before the tender closed on Friday at noon. The developers are betting on future housing demand in the sparsely populated area once transport links have been completed in a few years’ time.

Located next to a plot won by Sun Hung Kai Properties in April, it is the third parcel of land to be offered for government tender in Kwu Tung in as many months.

“Fierce competition for land is unavoidable as the government is unable to provide sufficient land for private housing,” said Thomas Lam, executive director at Knight Frank.

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The companies bidding included some of the city’s biggest developers such as Sun Hung Kai Properties (SHKP), Henderson Land Development and CK Asset Holdings. A joint venture between Chinachem Group and Hysan Development, and a joint bid by Far East Consortium and Tai Hung Fai Enterprise also threw their hats into the ring.