{"id":363907,"date":"2023-11-10T20:30:54","date_gmt":"2023-11-10T12:30:54","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=363907"},"modified":"2023-11-10T20:30:54","modified_gmt":"2023-11-10T12:30:54","slug":"mtr-plot-draws-no-bids-in-latest-hong-kong-land-sale-fail","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/projects\/mtr-plot-draws-no-bids-in-latest-hong-kong-land-sale-fail\/","title":{"rendered":"MTR Plot Draws No Bids in Hong Kong\u2019s Second Failed Land Sale in Under Two Weeks"},"content":{"rendered":"<div id=\"attachment_311468\" style=\"width: 790px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-311468\" class=\"wp-image-311468 size-full\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/04\/MTR-Tung-Chung.jpeg\" alt=\"MTR Tung Chung\" width=\"780\" height=\"425\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/04\/MTR-Tung-Chung.jpeg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/04\/MTR-Tung-Chung-400x218.jpeg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/04\/MTR-Tung-Chung-640x349.jpeg 640w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/04\/MTR-Tung-Chung-420x229.jpeg 420w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/><p id=\"caption-attachment-311468\" class=\"wp-caption-text\">MTR&#8217;s projects in Hong Kong&#8217;s Tung Chung area are facing a tough market<\/p><\/div>\n<p>Hong Kong\u2019s MTR Corporation failed to receive a bid by the close of a tender for a residential and retail project near Hong Kong&#8217;s International Airport this past week, marking the city&#8217;s second failed land sale this month.<\/p>\n<p>Despite receiving 32 expressions of interest since the tender process initiated on 11 October, the tender for the site about six kilometres (3.7 miles) from Hong Kong International Airport concluded on Thursday with no commitments for Package One of the Tung Chung East Station Development project, according to a statement from the company.<\/p>\n<p>The aborted tender for the project opposite the future Tung Chung East Station on Lantau Island marks the first time in over a decade that a project by the listed developer and operator of the city\u2019s mass transit system has failed to attract any bids, according to local media. MTR\u2019s last project to not receive a bid was a development at Tin Wing Station in Tin Shui Wai in February 2013.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/ad.doubleclick.net\/ddm\/trackclk\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd=;dc_tdv=1\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"Copy of APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real Estate\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><script language='JavaScript1.1' src=\"https:\/\/ad.doubleclick.net\/ddm\/trackimpj\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;ord=+ Date.now();dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?\" attributionsrc ><\/script><\/p>\n<p>\u201cThe lack of tenders received for the land indicates that the base price set by MTRC is considered not attractive in itself,\u201d said Alex Leung, Chief Surveyor at consultancy CHFT Advisory and Appraisal. \u201cFurthermore, this result implies that developers are not interested in projects that have a long return period. It is expected that there will be a significant amount of residential land supply in Tung Chung, and therefore the appreciation potential of these projects appears to be poor.\u201d<\/p>\n<p>The project is located in the same area where the Hong Kong government shuttered the sale of a residential site on 1 November when the four bids submitted failed to meet the government\u2019s reserve price.<\/p>\n<h3>2029 Completion<\/h3>\n<p>Package One of the MTR project includes Tung Chung Town Lot No 53 which is situated at the southeastern part of the larger project site, opposite the future Tung Chung East Station on the Tung Chung Line Extension, both of which are targeted for completion in 2029.<\/p>\n<div id=\"attachment_363910\" style=\"width: 790px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-363910\" class=\"size-full wp-image-363910\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/MTR-Dr-Jacob-Kam.jpg\" alt=\"MTR chief executive Jacob Kam\" width=\"780\" height=\"446\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/MTR-Dr-Jacob-Kam.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/MTR-Dr-Jacob-Kam-400x229.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/MTR-Dr-Jacob-Kam-640x366.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/><p id=\"caption-attachment-363910\" class=\"wp-caption-text\">MTR chief executive Jacob Kam<\/p><\/div>\n<p>Package One in the MTR Tung Chung East project includes up to 64,650 square metres of residential and 8,133 square metres of retail area with the larger MTR development spanning a combined 626,600 square metres across a series of phases.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mingtiandi.com\/real-estate\/events\/oxford-ivanhoe-kic-savills-on-singapore-india-markets\/\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"14 NOVEMBER 2023 conrad centennial Singapore\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>The development will connect directly to the future Tung Chung East Station by footbridges. Upon completion of the station and line extension, residents will be able to reach Central, West Kowloon or other urban districts within approximately 30 minutes.<\/p>\n<p>The project is estimated to be worth between HK$1.6 billion and HK$2.8 billion and is expected to have 1,000 flats and a shopping mall, according to local media. \u201cThe market generally considered the value of this land to be in the range of HK$1,900 to HK$3,000 per square foot on an accommodation value basis,\u201d said Leung.<\/p>\n<h3>Moody Market<\/h3>\n<p>Prices for mass market homes fell 1.1 percent in Hong Kong during September compared to a month earlier, according to JLL, with several months of market decline having brought values back to December 2022 levels.<\/p>\n<p>The housing slide has seen the scrapping of several tenders this year as developers\u2019 appetite for new projects remains suppressed amid weak market sentiment.<\/p>\n<p>Rising interest rates have dampened property prices and demand in the Asian financial centre, as local banks track the US Federal Reserve\u2019s interest rate hikes in raising their prime borrowing rates to a range of 5.875 to 6.375 percent, the highest since 2007.<\/p>\n<p>\u201cIf interest rates remain high in 2024, further drop in residential prices will be not avoidable. We are expecting another 5 to 10 percent adjustment, subject to macroeconomic performance,\u201d said Hannah Jeong, head of valuation and advisory at consultancy Colliers. \u201cIn September, 958 primary and 2,088 secondary residential transactions were recorded. Secondary market transactions have fallen below 2,000 only four times since 1997, which has shaken developers&#8217; confidence.\u201d<\/p>\n<p style=\"text-align: center;\"><div style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"mingt-194576832\"><a data-no-instant=\"1\" href=\"https:\/\/www.yardi.asia\/Resource\/?resource=Technology+Transformation+in+Asian+Real+Estate+%28White+Paper%29&#038;utm_source=mingtiandi&#038;utm_medium=website&#038;utm_campaign=wp23ttare\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"Yardi &#8211; Asia Proptech Report 2023 v5_250\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/Yardi-Asia-Proptech-Report-2023-v5_250.gif\" alt=\"\"  width=\"780\" height=\"250\"  style=\"display: inline-block;\" \/><\/a><\/div><\/p>\n<p>Following four previously unsuccessful attempts, the Hong Kong government on 1 November rejected all four bids for a 10,648 square metre residential site in Tung Chung, remarking that \u201cthe government will not sell a site if no bid reaches the reserve price as assessed by the government&#8217;s professional valuers.\u201d<\/p>\n<p>In February, MTR <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/projects\/mtr-withdraws-tender-for-lantau-island-site-in-third-hong-kong-land-sale-fail-of-2023\/\">withdrew a tender for its Oyster Bay project<\/a> in northern Lantau island after the three bids received for the commercial and residential site fell short of the company\u2019s expectations. During that same month, Hong Kong\u2019s Urban Renewal Authority cancelled a Kwun Tong project tender after receiving just one bid for the 25,595 square metre site.<\/p>\n<p>In January, a tender for Hong Kong\u2019s first residential plot of 2023 <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/projects\/hong-kong-land-sale-fails-as-bids-fall-short-of-target\/\">was withdrawn<\/a> as offers from four bidders for a luxury site in Stanley failed to reach the government\u2019s expectations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hong Kong\u2019s MTR Corporation failed to receive a bid by the close of a tender for a residential and retail project near Hong Kong&#8217;s International Airport this past week, marking the city&#8217;s second failed land sale this month.<\/p>\n<p>Despite receiving&#8230;&nbsp;<a href=\"https:\/\/www.mingtiandi.com\/real-estate\/projects\/mtr-plot-draws-no-bids-in-latest-hong-kong-land-sale-fail\/\">Read&nbsp;More>><\/a><\/p>\n","protected":false},"author":18333,"featured_media":363910,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3401],"tags":[5382,694,5795,5118,8837],"ppma_author":[9278],"authors":[{"term_id":9278,"user_id":18333,"is_guest":0,"slug":"kevin-he","display_name":"Kevin He","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/efdb9306ba60ef6852106a81f25dad21?s=96&d=mm&r=g","user_url":"","last_name":"He","first_name":"Kevin","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/363907"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/18333"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=363907"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/363907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/363910"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=363907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=363907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=363907"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=363907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}