Commercial site in Aberdeen attracts 24 bids as developers’ certainty grows

The supervision has perceived 24 bids for a blurb site in Aberdeen, partial of Hong Kong Island’s Southern District, with analysts observant a response reflects developers’ certainty in a marketplace outlook.

The 19,000 square-foot site in Wong Chuk Hang is expected to fetch between HK$1.42 billion and HK$2.4 billion, or HK$5,000 to HK$8,000 per block foot, according to skill agents.

The far-reaching operation of estimates reflects doubt over a upkeep costs of a circuitously slope which, according to a land sale particulars, a winning developer will need to take caring of.

The sum sum building area of a blurb site will be as many as 284,900 sq ft. The details also need a developer to erect another building covering 30,000 sq ft as a informative and humanities centre as good as bureau premises.

Hong Kong companies such as Chinachem Group, K Wah International, Emperor International and Sino Land were among a bidders.

Thomas Lam, conduct of valuations and consultancy during Knight Frank, pronounced a high series of bidders indicated developers’ certainty for a city’s skill market.

On Wednesday, Kerry Properties kick 10 other bidders to win a site in Kowloon Tong’s Beacon mountain for HK$7.27 billion or HK$21,016 per sq ft, a many costly supervision land sale this year.

According to JLL’s latest Hong Kong Residential Sales Market report, 6 out of 8 open residential land sales tenders were awarded during prices above marketplace expectations in a third quarter.

Among a many important transactions, Gingerlily Investments, a association hold by internal financier Angela Leong – also famous as a fourth mother of Macau aristocrat Stanley Ho Hung-sun – acquired a residential site in Tuen Mun for over HK$ 1.4 billion, or an accommodation value (the cost of buildable area) of HK$6,800 per sq ft. The cost was 70 per cent aloft than marketplace forecasts.

The new strain of assertive bids topsy-turvy a trend from progressing in a year, when usually 3 out of 8 awarded tenders managed to scratch a reduce finish of estimates.

JLL pronounced a pick-up in a land sales might vigilance a replacement of developers’ certainty in a market.

The increasing perceptiveness among developers to get their hands on land comes amid a miscarry in skill prices and clever sales in a primary market.

In a initial 9 months, mainland developers placed bids in half of a land sales tenders, on standard with their appearance rate in 2015.

With a concentration of investors now on mass residential projects, JLL expects a oppulance marketplace to benefit a larger share of a limelight in a entrance months, as some new projects such as Mount Nicholson on The Peak, 38 Inverness Park in Kowloon City and St. Moritz in Kau To are due to be launched onto a sales marketplace soon.