Property risks push home developers to cherry pick project sites

But exceptions still exist.

Downside risks, as a result of imminent interest rate hikes, increasing residential supply, stamp duty measures, and already-high prices are all weighing heavily on investors’ minds and causing them to bid conservatively.

According to a research and forecast report from Colliers International on 2Q 2014, however, exceptions do exist.

Quality sites in urban areas are highly sought after. In addition to Hopewell’s land acquisition in Wanchai, Wheelock purchased a Kai Tak site at a price which exceeded market expectations making it the second highest in value amongst the six residential plots sold in Kai Tak.

Here’s more from Colliers International:

With the government speeding up land sales to boost housing supply, the appetite for land acquisition remained generally strong during 2Q 2014.

Where supply is abundant, such as the New Territories, developers place conservative bids, however in urban areas, bids were significantly higher.

For instance, Hopewell won the tender for a site in Wanchai with a higher-than-expected price of HK$233 million or an accommodation value of HK$16,035 per sq ft, marking it as the most expensive accommodation in the district.