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| HSI1 | 26,389.04 | +0.60 | 306.70B |
| HSCEI1 | 8,858.63 | -17.75 | 113.18B |
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2026-05-13 14:59:08 Regarding the tender for the Tung Chung Area 106A residential site, CBRE Hong Kong said Area 106A is among the first sites to be launched under the 2026/27 Land Sale Programme, reflecting the government’s prudent and pragmatic land supply strategy. As noted earlier, the scale of this year’s land sale programme is relatively streamlined, indicating a cautious stance toward market absorption capacity and land revenue expectations. Against this backdrop, prioritizing a rolled-over site with relatively clear and straightforward development parameters demonstrates the government’s intention to secure smoother tender outcomes while the market remains in a recovery phase. The project is expected to provide about 990 residential units, representing a mid-sized development scale attractive to developers. Future development will mainly target the mass to mid-to-high-end market, focusing on first-time homebuyers and upgraders, as well as airport-related demand driven by the continued development of Hong Kong International Airports Three-Runway System and the resumption of the expansion of Terminal 2. Pricing strategies are expected to emphasize competitiveness and efficiency, in line with prevailing market conditions. CBRE estimated the sites valuation at approximately HKD960 million (equivalent to a floor price of about HKD1,800 per square foot), representing slight upside compared with the adjacent Area 106B site acquired by Sun Hung Kai Properties in early 2025. However, the wide range of market valuations reflects factors such as geopolitical risks, construction costs, interest rate trends, and competition in the primary market. ~ AASTOCKS Financial News Website: www.aastocks.com | |