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Hong Kong residential plot sells within expected range

[HONG KONG] A residential plot in Hong Kong's outlying Tai Po district in the New Territories was sold by government tender to an unlisted developer within the market's expected price range on Tuesday.

The cost of land is closely monitored in Hong Kong, which has one of the most expensive property markets in the world.

The plot, on Chong San Road, sold for HK$4.02 billion (S$709.34 million) on a 50-year land grant, according to the Lands Department, within the HK$3.8 billion to HK$4.45 billion range forecast by three surveyors.

While recent tenders have recorded mixed results - both above and below estimates - Hong Kong home prices have posted steady declines. In March, they posted their sixth consecutive month of decline.

Billion Real Estate Holdings Ltd unit, King Future Ltd, won the tender, beating listed developers including Vanke Property Overseas Ltd, Sun Hung Kai Properties Ltd and Cheung Kong Property Holdings Ltd.

The plot has an area of roughly 28,685 square metres and a maximum gross floor area of 103,266 square metres.