Business Insights | Hong Kong Land Sale Analysis

Executive Summary

The Hong Kong Government has released two urban residential sites for tender in Q4 2025/26 (January–March 2026), located in Choi Ha Road, Ngau Tau Kok and Shau Kei Wan Main Street East. Together, the sites are expected to provide approximately 670 private housing units, aligned with the Government’s objective of maintaining a stable land supply while supporting the private development pipeline. Both sites benefit from proximity to MTR stations, established neighbourhoods and comprehensive amenities, signalling strong potential interest from mid to large scale developers. 

1. Choi Ha Road, Ngau Tau Kok, Kowloon (NKIL 6675)
Site Overview

The Choi Ha Road site (NKIL 6675), formerly the Maryknoll Secondary School and later used as Hong Kong Customs Training and Youth Centre, is located within a mature district adjacent to the Kowloon Bay MTR catchment. 



Location map of NKIL 6675

Source: GeoInfo Map

Development Potential

A 470 unit scheme could target Kowloon East upgrader demand, focusing on 1–3-bedroom apartments. The site’s adjacency to public transport, established retail and employment clusters, esp. Kowloon Bay / CBD2, and its rare availability in the district enhance commercial viability.

Market Valuation & Pricing Expectations

The Jordan Valley – Choi Hing Road site was recently awarded at HK$4,339 per sq.ft. AV, establishing a meaningful benchmark that is likely to influence developers’ pricing expectations for the upcoming Choi Ha Road tender. This transaction provides the market with a fresh data point reflecting current sentiment and cost tolerance in Kowloon East.

The tender outcome also marks a clear sign of returning confidence among major Hong Kong developers. The site attracted eight bids, demonstrating broad participation from leading blue chip developers including CK Asset, Henderson Land, Sun Hung Kai Properties, Kerry Properties, K. Wah International and Wheelock. Such widespread engagement indicates that developers are gradually regaining appetite for land acquisition, particularly in urban, mid scale residential plots that offer manageable capital exposure and ease of sale in the market.

The winning consortium — Sino Land (85% project share) and Great Eagle (15% project share) — secured the site at HK$1.61 billion, translating to HK$4,339 per sq.ft. AV, a price considered in line with market expectations. This reinforces the view that sentiment is stabilising and that developers are willing to commit capital when the site size, location and development risks are well balanced.

This competitive tender result is especially notable given the cautious bidding behaviour observed earlier in 2025, when sentiment was more subdued. The shift toward increased participation suggests that developers now perceive greater value in modest scale, well located urban plots, where both sales absorption and risk management are more predictable.

Against this backdrop, the Choi Ha Road (NKIL 6675) site stands out with an even stronger locational advantage. Located adjacent to Amoy Gardens, one of the most established and densely populated private housing estates in Ngau Tau Kok, the site benefits from a fully developed ecosystem of retail, community facilities, daily services and transport networks. This mature setting, combined with its strategic position along the urban corridor between Kowloon Bay and Ngau Tau Kok, places the site closer to key employment hubs and lifestyle amenities — including direct access to Kowloon Bay MTR Station — a factor consistently highlighted by industry professionals as a major competitive differentiator.

Compared with the Choi Hing Road site — which, while successful in tender, is situated in a relatively more peripheral pocket of Jordan Valley — Choi Ha Road is expected to attract stronger market interest. Its connectivity, readiness of surrounding infrastructure and integration into an active residential catchment area collectively enhance both its marketability and its attractiveness to developers. We expect the Choi Ha Road tender to receive potentially more competitive bidding and achieve a higher land price than the Jordan Valley site.

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2. Shau Kei Wan Main Street East, Hong Kong (SIL 860)
Site Overview

This site, as part of the 2025–26 Land Sale List, represents the redevelopment of the former Shau Kei Wan Market Building, located along Main Street East within a mature residential and commercial catchment. 



Location map
 

Source: GeoInfo Map

Development Potential

With an estimated 200 units, the site is positioned for a boutique residential development targeting end users and investors seeking access to Hong Kong Island East. Its proximity to Shau Kei Wan MTR Station, established schools, and retail clusters supports strong absorption potential for compact to mid sized units.

Our Initial Views

Both Choi Ha Road (NKIL 6675) and Shau Kei Wan (SIL 860) present highly attractive urban residential development opportunities, offering mid- to small-scale projects within well-established and mature districts. Each site offers differentiated positioning:

• Choi Ha Road (Ngau Tau Kok) — larger scale, strong connectivity to Kowloon East business districts, suitable for mid market mass residential development.
• Shau Kei Wan Main Street East — smaller but strategically located on Hong Kong Island East, appealing to developers seeking lower investment exposure with steady end user demand.

Recent improvements in overall market sentiment, coupled with strong sales performance of new residential launches, have encouraged developers to actively replenish their land banks. The latest government land tenders have seen healthy participation and transaction prices exceeding initial market expectations, signalling a clear rebound in confidence.

Against this backdrop, the two upcoming sites — Choi Ha Road (Ngau Tau Kok) and Shau Kei Wan Main Street East — are well aligned with current market needs. Both plots are medium scale residential sites located in mature urban districts, offering manageable development size and strong end user demand fundamentals. Their strategic positioning within established communities, combined with comprehensive surrounding amenities, makes them particularly attractive to developers seeking lower risk, high absorption projects.

Given positive housing market momentum and renewed developer confidence in Hong Kong's private residential sector, we anticipate that these urban sites are generally welcomed by developers with robust tender interest and likely competitive bidding. Looking ahead, we believe the Government will remain active in launching residential sites of manageable sizes to meet market needs.