• Small developer Gingerlily outbids Sun Hung Kai Properties
  • Price of HK$6,795 per square foot beats HK$6,000 expectation

Gingerlily Investments Ltd., a smaller property developer, outbid Hong Kong giants Sun Hung Kai Properties Ltd. and Cheung Kong Property Holdings Ltd. with a HK$1.4 billion ($181 million) offer for land in the territory’s Tuen Mun district.

The price for the plot of government land works out to about HK$6,795 per square foot of saleable area, according to calculations by Bloomberg News based on figures released by the Hong Kong Lands Department on Wednesday. That exceeded market estimates of HK$6,000 per square foot, according to Thomas Lam, Knight Frank LLP’s head of valuation and consultancy in Hong Kong.

Ten other developers submitted bids in the tender, according to a statement from the Lands Department. The city’s large property companies have pulled back on land purchases amid a broader slump in home prices, with smaller players and mainland companies outbidding them in the past year, according to government figures.

“Mid and small-sized companies are a bit more aggressive than big players in some areas, especially when the purchase price is not that big,” Lam said. The site would appeal to Chinese buyers because of its proximity to the mainland border, he said.

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