Second try for Hong Kong land sale draws 33 developers as cautious bids expected

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MTR Corp’s tender for a Tung Chung site follows a senior government official’s call for developers to show faith in Hong Kong’s future

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A train passes by a construction site of MTR Corporation’s extension of the Tung Chung Line on Lantau Island on October 22, 2024. Photo: Elson Li

Salina Li

Published: 7:00pm, 21 Nov 2024Updated: 7:02pm, 21 Nov 2024

A total of 33 developers expressed interest in MTR Corporation’s second attempt to sell a parcel of land in Tung Chung near Hong Kong’s international airport, after a senior government official urged builders to show faith in the city’s future earlier this month.

The site on Lantau Island, part of the Tung Chung East Station development project, attracted no suitable bids in November last year.

The tender will be the first since Xia Baolong, head of the Hong Kong and Macau Affairs Office, told real estate tycoons to “recognise their responsibilities” earlier this month in a closed-door meeting attended by magnates from Sun Hung Kai Properties, Henderson Land Development, New World Development, Sino Group and Shui On Land.

Despite the government encouragement, surveyors expect the bidding to be moderate as a supply glut dampens market sentiment.

The tender for the site, known as Tung Chung Town Lot No 53, has received a total of 33 expressions of interest, MTR Corp said on Thursday. It added that it will finalise the sale but did not provide a specific time. The site attracted 32 interested parties last year.

The company cut the project to half its previous scale in view of the tepid response a year ago. It now supports about 600 flats, and is scheduled to be built in phases through 2029.

The project aims to attract medium to large-sized developers, said Alex Leung, senior director at CHFT Advisory and Appraisal.