The Hong Kong government auctioned the last residential land parcel of the fiscal year, located in Area 106B of the Tung Chung Reclamation Area. When bids closed for this residential land project, four major developer groups submitted bids, including major developers such as Sun Hung Kai Properties and Sino Group. Ultimately, Sun Hung Kai Properties won the bid with a bid of approximately HK$600 million, representing a floor area price of approximately HK$1,500 per square foot. This news sent a shockwave through the property market, impacting not only the government's continued land supply but also the high land price policy implemented over the past few decades and the future development of the northern metropolitan area. The implications are profound.
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The last time land prices were this low was 11 years ago, and that time the land was located on the outlying island of Ping Chau, which is incomparable to this new development area. Ping Chau itself has no transportation, relying solely on ferries, making it unsuitable for large-scale development. However, the current transaction price of HK$1,500 represents a 44% drop from the HK$2,700 per square foot of land that Sun Hung Kai Properties secured in the same area 13 years ago (now part of the East Ring project). This is a truly astonishing record.
