Business Insights | Tender of Residential Site - Tsuen Wan

Land Sale Summary

Source: Hong Kong SAR Government

Location map of the TMTL 441

Source: GeoInfo Map 

"The premium of HK$2,475,000,000 exceeds market expectations, underscoring Chinachem’s confidence in Hong Kong’s residential sector. It also reflected its strategic intent to leverage portfolio synergies in the district, where it already holds extensive residential, office, retail, and hotel assets. Current residential prices in the area range approximately from HK$12,000 to HK$18,000 per sq. ft. To break even, the new development would need to achieve a minimum selling price of HK$17,000 per sq. ft., with potential to reach up to HK$22,000 per sq. ft." Hannah Jeong, Executive Director, Head of Valuation & Advisory Services, CBRE Hong Kong

This site presents a compelling development opportunity. Being the only residential site offered by the government in Q2 (Jul–Sep 2025), and given the limited new supply in the district, strong market interest is anticipated. Its proximity to the MTR station, well-established infrastructure, well developed commercial and retail complexes and extensive community amenities—including Tsuen Wan Park and Tsuen Wan Sports Centre—are notable advantages. Additionally, the potential for sea views in some flat units will certainly enhance the site’s appeal.

The site is moderate in size (site area of approximately 70,135 sq. ft.) with potential for around 780 units. Land formation is relatively straightforward. Past performance reinforces confidence in moderate-scale developments: both the Tai Wai site and the Siu Lek Yuen site were successfully tendered in recent quarters, underscoring market appetite for similar opportunities.

The tender comes with obligations that will increase development costs. The successful bidder will be responsible for constructing two pedestrian bridge connections, a public car park (non-saleable, GFA exempt), and social welfare facilities, including a home care services center for frail elderly (≥2,765 sq. ft.) and a residential special child care center (≥7,304 sq. ft.). In addition, the site’s proximity to industrial building clusters may affect developers’ pricing strategy and project positioning.

Despite Tsuen Wan is a high-density district, there have been no brand-new developments. Therefore, this new development can capture upgrading demand from families. Current residential prices in the area range from approximately HK$12,000 to HK$18,000 per sq. ft (See Table 1). To break even, the new development would need to achieve a minimum selling price of HK$17,000 per sq. ft., with potential to reach up to HK$22,000 per sq. ft.


Table 1: Residential developments nearby and recent transacted unit price range

Source: Land Registry, Centaline, market source