Hong Kong construction and engineering company Able Engineering has secured a residential site in Tung Chung for a higher-than-expected HK$1.627 billion (US$207 million) premium, outbidding five groups of major developers in the city.
Able Best, a construction and private development unit of Able Engineering, secured a 50-year land grant for the 152,332 sq ft plot, according to a statement from the Lands Department on Tuesday.
The winning bid topped analysts’ estimates, which ranged between HK$960 million and HK$1.5 billion. The parcel is expected to yield a gross floor area of as much as 533,172 sq ft and is estimated to accommodate 990 residential units.
“The price is a bit higher than our expectations [but] reflects the confidence in the future of the residential property market, especially for those close to existing and future railway lines,” said Vincent Cheung, managing director at Vincorn Consulting and Appraisal.
The other five bidders for the site were affiliates of K&K Property, Sun Hung Kai Properties, China Overseas Land & Investment, K. Wah International, and a unit of joint bidders Kerry Properties and Sino Land.
“The [winning] bidder is not the most active traditional developer, suggesting that alternative investors [are also] gaining confidence again to invest in real estate, particularly those familiar with infrastructure development,” Cheung said.
