HK government launches bid for 6 land sites

It will yield 4,200 residential units.

According to Barclays, the Hong Kong Government continued to speed up land supply.

The Lands Department will release six land sites for tender in late March, providing around 4,200 residential units.

Here’s more from Barclays:

The tender for one Wong Chuk Hang site and one Tuen Mun site will start from 21 March and run till 9 May 2014. The Wong Chuk Hang site (GFA: 87,673sf) is expected to fetch HK$2,630mn or HK$30,000psf by surveyors, while the land estimate for Tuen Mun site (GFA: 71,107sf) is around HK$178mn or HK$2,500psf.

The tenders for one Pak Shek Kok site and one Kai Tak site will open on 28 March andrun till 23 May 2014. The Kai Tak site could yield 413,015sf GFA. According to the land sales condition, at least 630 units are required to be built on the site. Surveyors put the land estimates at HK$2,272-2,478mn or HK$5,500-6,000psf. For the Pak Shek Kok site, the land price estimate by surveyors ranged from HK$3,654-5,116mn or HK$5,000-7,000psf.

The largest sites among the six sites are the two in Tin Shui Wai, Yuen Long. The tender for these two sites will open from 28 March to 4 July 2014. The Area 112 site will provide1.2mn sf GFA and at least 1,330 units, while the Area 115 site will offer 1.0mn sf GFA and at least 1,140 units.

Given their proximity to the Hong Kong Wetland Park, the land tender condition includes restrictions on noise and vibration levels throughout the construction period. Surveyors expect the restrictions to increase the construction cost and estimate the land price at HK$1,900-2,500psf for both sites.