Hong Kong’s Chinachem Wins New Territories Residential Site With $320M Bid

Hong Kong builder Chinachem Group on Tuesday was awarded a government tender for a New Territories residential plot after placing a bid of HK$2.48 billion ($320 million).

Situated at the corner of Wing Shun Street and Texaco Road in Chinachem’s home district of Tsuen Wan, the plot measures 70,127 square feet and can yield a gross floor area of up to 434,787 square feet (40,393 square metres). Privately held Chinachem beat eight other bidders — including local giants CK Asset, Sun Hung Kai Properties and Henderson Land — to win the right to develop the 50-year land grant site, the Lands Department said in a release.

CEO Andy Cheung told Mingtiandi that the housing development is expected to achieve synergistic effects with Chinachem’s existing residential, commercial and hotel projects in Tsuen Wan as the firm seeks to transform the district into a more liveable community.

“Adjacent to Tsuen Wan West MTR station and Tsuen Wan Park, the site benefits from a mature community with ample shopping malls and amenities,” Cheung said. “The development will primarily feature small to medium-sized residential units.”

Limited New Supply

The land parcel, known as Tsuen Wan Town Lot No.441, was the only residential site offered by the Hong Kong government during the July-September quarter. The site can provide 780 homes with the potential for sea views in some units, according to CBRE.

“Despite Tsuen Wan is a high density district, there have been no brand-new developments,” said Hannah Jeong, the consultancy’s head of valuation and advisory services. “Therefore this new development can capture upgrading demand from families.”

Chinachem’s price for the site translates to HK$5,692 ($731) per square foot of accommodation. CBRE expects units at the new development to command HK$16,000 to HK$22,000 per square foot, compared with prices of HK$12,000 to HK$18,000 at existing projects in the vicinity.

The winning tender comes with obligations that will increase development costs, Jeong said. Chinachem will be responsible for building two pedestrian bridge connections, a public car park and social welfare facilities, including a home care services centre for frail elderly (2,765 square feet) and a child care centre (7,304 square feet).

“In addition, the site’s proximity to industrial building clusters may affect developers’ pricing strategy and project positioning,” she said.

Shows of Support

Chinachem demonstrated its conviction in Hong Kong’s property market in March 2024 with the acquisition of the D-Park mall in Tsuen Wan from New World Development for HK$4.02 billion ($514 million).

Last year also saw the builder enter the winning bid of HK$1.02 billion ($130 million) to develop a residential site in the Sha Tin area of eastern New Territories with potential to yield 570 units.

Chairman Peter Brien said the latest buy in Tsuen Wan affirmed Chinachem’s “strong confidence” in Hong Kong’s future development.

“Guided by its brand philosophy ‘Places with hearts’, Chinachem strives to create high-quality, livable communities and deliver a better living environment for the people of Hong Kong,” Brien said.

The developer has also been active in the London property market in recent years, having purchased Deloitte’s headquarters building in the City of London for £349.5 million ($433 million) in 2023, as well as TikTok’s UK headquarters for £158.5 million ($182.5 million) in 2022.