A government land plot sits behind a fence at Kau To, Sha Tin district. Jerome Favre / Bloomberg

A total of 24 Hong Kong developers have submitted their bids for the latest two residential land parcels to go under the hammer, reflecting their continued optimism in the real-estate market despite the government's toughest ever property curbs announced in October last year.

The deadline for submitting bids for the two sites - at Kau To in Sha Tin and Sha Kwok Mei in Sai Kung -- ended on Friday. The Sha Tin parcel drew bids from 10 developers while the Sai Kung lot attracted 14. Both sites are part of the 2012-2013 land sale program.

Blue-chip developers Cheung Kong (Holdings), Sun Hung Kai Properties, Sino Group, New World Development, Wheelock and Company and K. Wah International Holdings, as well as mid-tier players like Wing Tai, Manhatten Group, Tai Cheung Holdings, Lai Sun Development and Emperor International, entered the fray.

K.Wah International and Tai Cheung, however, have adjusted their bids to "price-in" the government's recent introduction of a Buyers' Stamp Duty and the extension of the Special Stamp Duty to curb soaring property prices.

According to market estimates, the Kau To site could fetch between HK$1.28 billion and HK$1.44 billion, translating into HK$9,000 to HK10,113 per square foot, while the Sha Kwok Mei lot could fetch between HK$1 billion and HK$2.2 billion, translating into HK$4,000 to HK$9,000 per square foot.

"Judging from the number of developers bidding for the two sites, it shows their bullish attitude toward the property market," Centaline Surveyors director James Cheung said.

"The harsh measures unveiled by the government should not be a long-term concern to developers as they see them as having only a short-term effect," he said.

Last October, the government imposed an unprecedented 15-percent Buyer's Stamp Duty on all homebuyers who are non-Hong Kong residents, plus a 10 to 20-percent Special Stamp Duty on short-term home sales within a three year period.

Vincent Cheung, National Director Greater China at Cushman &Wakefield, predicted that the bidding price for the Sha Kwok Mei parcel could be in the upper end of market forecasts due to the site's prime location and limited land supply for luxury flats in Sai Kung.

The 8,590-square-meter Kau To plot is designated for private residential development. The minimum and maximum gross floor areas are 7,937 square meters and 13,228 square meters, respectively.

The bigger Sha Kwok Mei lot, covering an area of 15,430 square meters, is also designated for private residential purposes. The minimum and maximum gross floor areas are 13,887 square meters and 23,145 square meters, respectively. The total number of residential units to be built shall not be less than 240.

Last December, the government awarded a Tseung Kwan O site to Wheelock and Company for HK$1.96 billion, at the lower end of market consensus. It also awarded another plot on Kwun Chung Street, Jordan, to Rykadan Capital for HK$193 million, at the median forecast level.

oswald@chinadailyhk.com

(HK Edition 01/05/2013 page2)