Hong Kong land auction sparks upward revision of property valuations
A residential site in Ho Man Tin sold for HK$4.308 billion, nearly 40 per cent above market estimates. A surveyor has raised his valuation for a Peak site by up to 42 per cent and for two Sha Tin plots by up to 60 per cent, citing a shift in the land market.
A residential site in Ho Man Tin's Fat Kwong Street has been won by Kerry Properties for more than HK$4.308 billion, nearly 40 per cent above market expectations, with a premium per square foot of gross floor area exceeding HK$20,738, a five-year high for the Kowloon district, Hong Kong's Radio Television reported on 7 October 2026.
Leung Pui-hang, senior director of valuation at Hua Fang Consulting, said the winning bid surpassed his own forecast of HK$2.6 billion. He has revised his valuation for the Cape Collins Road site in the government's land sales list from the HK$4.32 billion to HK$4.56 billion range he predicted in February to HK$6 billion to HK$6.48 billion, an increase of up to 42 per cent, equating to a per-square-foot land premium of about HK$12,500 to HK$13,500. For two residential plots in Sha Tin's Shek Mun, he raised his valuation by up to 60 per cent, with a maximum per-square-foot land premium of about HK$8,800.
Leung said the Ho Man Tin project continues a trend seen in the Urban Renewal Authority's Hung Hom site, where the winning bid also far exceeded expectations, indicating a shift in the “flour market” (land market). He estimated that upon completion, the Fat Kwong Street project would achieve a unit price of HK$45,000 per square foot, significantly higher than other new developments in the district, potentially supporting local property prices.
Bu Siu-ming, a senior director at Midland Realty, said that after the tender result was announced, some owners in the area have indicated they will offer “zero room for negotiation,” and some who are currently listing properties plan to raise prices by at least 10 per cent. He expects a significant increase in the number of people booking visits to neighbouring new developments this weekend. Bu added that the winning bid reflects developers' bullish outlook on the luxury home market and is likely to directly benefit overall luxury property prices.