Bids for US$970 million Mansfield Road plot on Peak in line with expectations, hint at optimism, analysts say
- Number of bids within expectations; all big developers, says Thomas Lam of Knight Frank
- Wharf, which won tender for 2,4,6 and 8 Mansfield Road in December, is expected to have put in another aggressive bid
The five bids for a rare plot of land in Hong Kong’s upmarket The Peak district were in line with expectations and hinted at optimism about the city’s luxury residential market, analysts said.
“The number of bids was within my expectations of between five and seven bidders. All of them are big developers,” said Thomas Lam, executive director and head of valuation and advisory at property consultancy Knight Frank. “I think it is an attractive investment, as the luxury residential supply at The Peak is very limited. Residential supply in Mid-Levels or The Peak only accounts for less than 0.2 per cent of total future supply between this year and 2025,” he added.
Interest in the plot comes amid the worst contraction on record in Hong Kong’s economy, which declined 6.1 per cent last year as the coronavirus pandemic pushed up unemployment in the city. It hints at optimism over the luxury residential market, which saw an annual rental decline of 11.5 per cent last year after companies cut salaries and housing allowances, according to real estate services provider Savills.
