Business Insights | Hong Kong Land Sale Analysis

Executive Summary

Regarding the New Kowloon Inland Lot No. 6674 at Choi Hing Road, Jordan Valley, Kowloon, as the tender closes today, Eddie Tsui, Senior Director, Valuation & Advisory Services, CBRE Hong Kong, notes that the site represents a small to medium scale residential development opportunity within a mature community in East Kowloon. Supported by limited new housing supply in the district, improving market sentiment, easing interest rate environment, and enhanced policy support on GFA concessions, the tender is expected to attract solid interest, particularly from small to medium scale developers. 

Site Overview

The subject property has a site area of approximately 3,830 sq.m. (41,200 sq.ft.) and is located along Choi Hing Road in Jordan Valley, near Choi Hung and Shun Lee. While not directly adjacent to an existing MTR station, the site is currently well connected via minibus and bus services.

Notably, the site will benefit from its proximity to the future Choi Wan Station of the Smart and Green Mass Transit System in East Kowloon (SGMTS EK), as well as established surrounding infrastructure. The neighbourhood is served by a comprehensive range of community and lifestyle amenities, including Choi Wan Complex, Choi Tak Shopping Centre, Jordan Valley Park, and multiple reputable schools. In view of its height restriction of 175m above HKPD under its zoning, we expect that some upper floor units may enjoy open views towards the Kai Tak district, enhancing residential appeal.



Location map of NKIL 6674

Source: GeoInfo Map

Development Potential

The site can provide a maximum GFA of approximately 34,470 sq.m. (371,000 sq.ft.), supporting the development of around 570 residential units, making it suitable for a residential cum retail scheme of manageable scale.

Choi Hung is traditionally a high density residential district dominated by public housing estates, with relatively limited private housing supply. Recent private developments in the vicinity include Uptown East by Wong Sun Hing Group and The Aperture by Hang Lung Properties, where current first hand residential prices range between HK$15,000–20,000 psf (saleable). Meanwhile, nearby secondary residential estates such as Scenic View (approximately 26 years old) and Aria (approximately 15 years old) are transacting at around HK$10,000–12,800 psf and HK$12,000–16,000 psf (saleable) respectively.

Against this backdrop, the upcoming development is well positioned to capture upgrading demand from local families with children. Furthermore, given its proximity to multiple tertiary institutions—including HKUST, PolyU, CityU, MetroU, and Hang Seng University—the site also offers flexibility for alternative development themes, such as family centric housing or student oriented accommodation.

Tender Analysis and Market Expectations

The land tender benefits from recent policy support, as announced in the latest Policy Address, which relaxed GFA exemptions for above ground car parks in private developments. Effective from November 2025, the policy allows full GFA exemption for the first two levels of car parks and 50% exemption for subsequent levels, offering developers greater design flexibility, potential construction cost savings, and shorter development timelines. This policy is applicable to the subject site.

However, the tender conditions include certain social facility obligations that may increase development costs and affect overall financial viability. The successful bidder is required to construct:

• A day activity centre cum hostel for severely mentally handicapped persons with a net operational floor area of not less than 1,010.2 sq.m. (10,874 sq.ft.);
• A supported hostel for mentally handicapped persons with a net operational floor area of not less than 351 sq.m. (3,778 sq.ft.); and
• A lay by

Despite these obligations, market sentiment remains positive, underpinned by three interest rate cuts by the US Federal Reserve in 2025, improving primary residential sales performance, and supportive signals from recent government land transactions. Under these conditions, CBRE expects the tender for NKIL 6674 to receive a solid response, with participation likely concentrated among small to medium scale developers seeking manageable development risk and stable absorption prospects.

Although not a large scale site, the tender outcome for NKIL 6674 will likely be viewed by the market as a sentiment benchmark and offer a useful pulse check on developer confidence heading into the next phase of public land supply in early 2026 for:

• Future East Kowloon residential land sales, e.g. NKIL 6675 in the pipeline
• Medium density urban sites with social facility requirements
• The effectiveness of recent policy measures on GFA relief in stimulating developer interest

The number of bids and overall pricing—once revealed—will provide helpful signals on how developers are currently pricing policy support versus project obligations.

[Update on 7 Jan 2025]  NKIL 6674 was sold to a consortium comprising Sino Land and Great Eagle at a premium of HK$1.61 billion, equivalent to an accommodation value of HK$4,339 per sq ft. The result was broadly in line with our expectations. The tender attracted seven additional bidders, reflecting solid interest from major developers and indicating that market sentiment is gradually regaining long term confidence.