China government-backed developer Poly Property Group (0119) has won a residential site in Tuen Mun for HK$1.7 billion, setting a record high for land costs in the western New Territories.
The developer won the tender at a price of HK$15,000 per buildable square foot, 25 percent higher than surveyors’ estimates of HK$1.4 billion.
The 88,000-square-foot plot is located near Cafeteria New Beach. Low-rise mansions are expected to be built, with a gross floor area of up to 114,000 sq ft, said Poly Property, adding completed units may each sell for HK$26,000 per salable sq ft.
Poly Property beat 19 contenders, including heavyweights Cheung Kong Property Holdings (1113), Sun Hung Kai Properties (0016) and New World Development (0017).
Surveyors believe the winning bid will set a benchmark for further high-priced residential land tenders.
The most expensive previous residential tender in the New Territories, specifically Ngau Tam Mei in Yuen Long, fetched HK$12,119 pbsf, exceeding market estimates. Poly Property’s winning bid surpassed that record by 23 percent.