CBRE values Tung Chung site at $960m

The consultancy expects more than eight bidders but disciplined pricing.

CBRE valued the Tung Chung Area 106A residential site at about $960m, or around $1,800 per square foot (psf) gross floor area (GFA), indicating modest upside compared with the adjacent Area 106B site sold to Sun Hung Kai Properties in early 2025.

CBRE said its launch reflects the government’s measured and pragmatic land supply strategy, as this year’s programme remains relatively lean amid a still-recovering market.

The consultancy said prioritising a rolled-over and straightforward site shows an intent to support smoother tender outcomes, whilst signalling a cautious stance on market absorption and revenue expectations.

Located within the Tung Chung East reclamation area, the site benefits from a waterfront setting and proximity to the future Tung Chung East MTR station, which is targeted for completion around 2029.

Nearby developments such as Century Link and The Visionary, priced at about $11,000 to $12,500 psf, provide a pricing reference and support the site’s long-term residential appeal.

However, CBRE said the district remains in an early-stage “pioneering” phase, with value uplift dependent on infrastructure-led maturation.

The site is expected to yield about 990 units, offering a mid-sized and developer-friendly scale. The eventual project is likely to target the mass to upper-mass residential segment, including first-time buyers, upgraders, and airport-related demand.

CBRE said demand could be supported by the ongoing aviation expansion under the Third Runway System and the reopening of the Terminal 2 Expansion.

The consultancy expects improved interest, with more than eight bidders, but said bid pricing will likely remain disciplined as developers stay selective and focused on margin protection.