According to comprehensive market valuations, the "mosquito-shaped" residential plot in Yuen Shun Circuit, Sha Tin is valued between approximately HK$579 million to HK$680 million, with valuation ranging from HK$3,700 to HK$4,400 per square foot. Simultaneously, another project located on Kai Tak Road in Kowloon City by the Urban Renewal Authority (URA) will also close its tender bids on the same day. Industry experts anticipate competition from several financial consortiums despite the modest investment scale of these projects.
Liang Pui-hung, Senior Director at Centaline Surveyors Limited, noted that the Yuen Shun Circuit plot in Sha Tin is suitable for residential development, particularly due to its proximity to the MTR station (approximately 140 meters away) and nearby amenities such as Sha Tin City One and Jewel City. Liang believes that the replacement demand in Sha Tin and stable demand from extended families support the decision to launch this project, especially considering its advantageous location in a mature community. Residential land transactions have been relatively scarce in Hong Kong in recent years, making the auction results of this project significant for market guidance.
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The Yuen Shun Circuit plot (Site No. 623 in Sha Tin District) is the first residential land plot auctioned in this fiscal year, adjacent to the Yuen Shun Fire Station and close to the MTR City One Station. The plot covers approximately 26,000 square feet and allows a total gross floor area of around 156,000 square feet, expected to accommodate about 280 residential units, typical of a "mosquito-shaped" residential plot. According to auction rules, each residential unit must have a minimum area of approximately 280 square feet, and the winning consortium must build government-mandated facilities such as an elderly daytime care center, facilities for the frail elderly, and parking facilities.
On the other hand, the URA's development project on Kai Tak Road and Sha Po Road received 31 expressions of interest last year but did not proceed to tender. Eight months later, the URA has re-launched the project, marking the second time in nearly 15 years that it has sought expressions of interest. The latest market valuation indicates the project's value at approximately HK$1.953 billion to HK$2.159 billion, with a valuation per square foot ranging from HK$3,800 to HK$4,200, a decrease of about 23% from eight months ago.
Starting in February 2019, the project covers an area of 57,100 square feet with a total gross floor area of approximately 514,100 square feet, expected to provide about 810 residential units. The reissuance of expressions of interest reflects the URA's serious consideration of market responses while demonstrating confidence in the project's long-term development potential. Competition for these projects will further drive activity in the Hong Kong real estate market, particularly amidst current economic and market conditions where demand for residential land remains robust among developers and investors.
