【World Property Journal】Developer Bids for Hong Kong's Kai Tak Site Drop 67 Percent Amid Political Unrest

According to JLL's latest Residential Sales Market Monitor Report, the average number of bidders for residential sites in Kai Tak decreased by 67% to just 5.5 in 2019 from two years ago.  This reflects developers turned cautious in land acquisitions.
The residential site (NKIL 6554) at Kai Tak attracted 4 bids when the tender announced on 13th November. Along with NKIL 6577 which sold in July, this is the lowest number of bids attracted among residential sites sold in the vicinity thus far. The average number of bidders for residential sites in this area has dropped to 5.5 this year, compared with 6.5 in 2018 and 16.3 in 2017.

Henry Mok, senior director of Capital Markets at JLL said, "This is partly attributed to the growing number of consortiums bidding for government land, especially for larger scale sites. However, it is evident that developers are trying to minimize investment size and risks on the back of the downside risks in the market."

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