Winning Accommodation Value per Square Foot for Residential Site in Tung Chung East Reclamation Area More Than Doubles from Last Year

The third private residential project in the Tung Chung New Town Extension (East) has been awarded to 𝐀𝐛𝐥𝐞 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐢𝐧𝐠, a construction and engineering company, at a higher-than-expected price of AV of $3,052 psf. This doubles the price of the adjacent site (Area 106B) awarded to SHKP in Feb. 2025. 

Valuation expectations among different valuers varied considerably. While some were worried about the massive flat supply in Tung Chung area, and the high construction costs at the newly reclaimed area. Yet, residential property market sentiment has improved. Competition among developers for new residential projects has intensified, driving them to overlook these uncertainties.

Able Engineering recently completed a HOS project in Tung Chung East and is acting as the contractor for a public rental housing project in Tung Chung West. Subsidized housing, including HOS and Public Rental housing PRH, will account for about 70% of the new flats in the Tung Chung New Extension areas. 

The expected AV of the site by CHFT was in the region of $2,626 to $2,813 psf. See hyperlinks below for our pre-tender analysis:

📣 HK01 https://lnkd.in/dxa7MZpN 

📣 HK Comm Daily https://lnkd.in/dh7wezTC

📣 HKET https://lnkd.in/dWnjzYJK

📣 Mingpao https://lnkd.in/d-Xhx6dE 

📣 Oriental Daily https://lnkd.in/dEY_e3QU

And, a live phone interview on 16 May morning by MetroRadio 🎤https://lnkd.in/d_j3_zWY