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On January 27, 2025, the Hong Kong Lands Department announced a highly anticipated land lease news: a private residential land located on Mei Tin Road, Tai Wai, Sha Tin was granted to Tsui Heng Limited, a subsidiary of Sun Hung Kai Properties Group, for HK$606 million, with a lease term of 50 years. The site is numbered Shatin Town Lot No. 651, with a site area of approximately 3,600 square meters. The designated use is private residential development with a total floor area ranging from 10,800 square meters to 18,000 square meters, and is expected to provide approximately 360 units. This transaction not only reflects the continued vitality of Hong Kong's real estate market, but also brings new possibilities for the future residential supply and urban development of Sha Tin District.
【Land Details】
▎Location: Mei Tin Road, Tai Wai, Shatin (1.2 km northwest of MTR Tai Wai Station)
▎Site area: 3,600 square meters (approximately 38,750 square feet)
▎Maximum buildable floor area: 18,000 square meters (approximately 193,750 square feet)
▎Plot ratio: 5 times
▎Unit estimate: It is expected that about 300-350 small and medium-sized units can be built
▎Market valuation: The previous surveyor valuation was 580-720 million (the winning bid price was in line with expectations)
Land Details and Geographical Advantages
Sha Tin Town Lot No. 651 is located at Mei Tin Road, Tai Wai and is one of the core areas in Sha Tin District. As an important residential and commercial hub in the New Territories East, Shatin has attracted much attention in recent years due to its convenient transportation network and complete living facilities. The Mei Tin Road area is just a few minutes’ walk from Tai Wai MTR Station, which is the intersection of the East Rail Line and the Tuen Ma Line, connecting Hong Kong Island, the New Territories and many major areas in Kowloon, with unparalleled transportation convenience. In addition, the surrounding area has mature community facilities, including large shopping malls such as New Town Plaza, schools, medical institutions and park green spaces, all of which enhance the development potential and attractiveness of the land.
The site area of 3,600 square metres is not large in size, but its permitted floor area range (10,800 to 18,000 square metres) demonstrates a high degree of flexibility. According to the regulations of the Lands Department, developers can decide the final building height and number of units based on market demand and planning requirements. This means that the land may be developed into a medium-sized residential project, which is expected to provide hundreds of residential units to meet the housing needs of different classes.
Three major development highlights
- Transportation hub effect: The site is only 800 meters away from the planned East Rail Line Pak Shek Kok Station (expected to open in 2028), and with the existing Tuen Ma Line Tai Wai Station, it forms a double-track intersection advantage
- Mature community facilities: 5 minutes walk to Mei Lam Village Market, Chan Kai Memorial School and Shing Mun Riverside Recreation Belt
- Smart city planning: It is reported that the winning bid will introduce smart home systems and vertical greening design Market interpretation: Small and medium-sized units dominate the market to attract young families
JLL head of research, Wong Chi-fai, pointed out that the transaction price reflects the developer's strategy of "seeking breakthroughs in a stable manner". Taking into account the government's latest "First Home Loan Scheme" will be expanded in 2026, it is expected that the project will mainly consist of 400-600 square feet units, with pricing based on Phase 3 of Parkview Hill in the same district (current average price of HK$18,500 per square foot). The first batch of asking prices may have room for discounts on 15%.
Transaction Background and Market Reaction
The land was sold for HK$606 million to Sun Hung Kai Properties' subsidiary, Tsui Heng Limited, demonstrating the confidence of large developers in the prospects of the Sha Tin district. As one of the largest and most influential real estate developers in Hong Kong, Sun Hung Kai Properties has long performed outstandingly in the residential, commercial and integrated project sectors. The successful land investment not only continues its layout strategy in the New Territories East, but also reflects its expectation for the long-term stable development of the local property market.
It is worth noting that the Hong Kong real estate market at the beginning of 2025 is in a delicate period of transformation. In the past few years, the land auction market has cooled down due to global economic fluctuations, rising interest rates and local policy adjustments. However, with the gradual recovery of the economy and the government's active promotion of land supply, market confidence has rebounded. The Sha Tin land was sold for over HK$600 million, with the land price per square meter ranging from HK$33,000 to HK$55,000 (depending on the final floor area). The price is within a reasonable range, showing the developer's optimism about future residential demand.
Industry insiders analyzed that this transaction may become a weather vane for the land market in 2025. The demand for residential properties in Sha Tin has continued to grow in recent years, and is particularly popular among young families and the middle class. If Sun Hung Kai Properties can successfully transform this project into a high-quality residential property, it will undoubtedly further consolidate its market position.
Project Outlook and Social Impact
Based on the size and use of the land, the land is expected to be developed into a medium to high density residential project. Sun Hung Kai Properties is known for its consistently high standards of design and construction quality. It may incorporate intelligent and sustainable elements into the project, such as green building technology or smart home systems, to cater to the needs of modern buyers. In addition, considering the population structure of the Sha Tin district, the project may mainly provide small and medium-sized units, targeting the first-time home buyers and small family market.
From a social perspective, the development of this land will increase residential supply in the Sha Tin district and help alleviate Hong Kong’s overall housing shortage. According to government data, as of early 2025, Hong Kong's public and private housing supply will still not fully meet demand, especially in mature communities with convenient transportation. This land allocation not only injects new vitality into the market, but also reflects the government's determination to support the development of private housing through land auctions.
However, the success of the project still depends on multiple factors, including the future economic environment, property market policies and the developer's execution capabilities. For example, if interest rates continue to rise in the coming years, development costs may increase, posing challenges to the profitability of the project. In addition, the community’s response to high-density development is also worth paying attention to, as Sha Tin residents have expressed concerns about the traffic pressure and environmental impact brought about by some projects in the past.
Market analysis: Small and medium-sized apartments dominate the market and attract young families
JLL head of research, Wong Chi-fai, pointed out that the transaction price reflects the developer's strategy of "seeking breakthroughs in a stable manner". Taking into account the government's latest "First Home Loan Scheme" will be expanded in 2026, it is expected that the project will mainly consist of 400-600 square feet units, with pricing based on Phase 3 of Parkview Hill in the same district (current average price of HK$18,500 per square foot). The first batch of asking prices may have room for discounts on 15%.
Regional Development Blueprint:
As the TOD (Transit-Oriented Development) planning of Shatin is gradually implemented, Tai Wai will form a "three cores and one axis" pattern:
- Commercial core: Commercial complex above Tai Wai Station (to be completed in 2027)
- Cultural and creative core: Meitian Road Art District (launched in 2029)
- Ecological Core: Chengmen River Landscape Corridor Extension Project
- Development axis: A smart living corridor connecting Che Kung Temple Station to Hin Tin Playground
The industry predicts that the project can be pre-sold as early as the third quarter of 2026 and will be ready for occupancy in 2029. It is expected to form a synergistic effect with five surrounding public and private development projects and provide more than 2,000 new residential units in the Sha Tin area.
Conclusion
The land at Mei Tin Road, Tai Wai, Sha Tin was awarded for HK$606 million, marking an important chapter for the Hong Kong real estate market in the new year. The participation of Sun Hung Kai Properties not only demonstrates its recognition of the development potential of the Sha Tin District, but also injects confidence into the market. In the future, how the development of this land will affect the residential structure and residents’ lives in Sha Tin will deserve continued attention. As the project progresses, its final appearance will become a microcosm of the health of Hong Kong's property market.
Mei Tin Road(English:Mei Tin Road)yesHongkongA road inNew TerritoriesShatinTai Wai,fromShatin DistrictTai WaiChe Kung Temple RoadStart toGenting Oneend. In the early days, this road only reached the opposite side of Meihuai Tower, with a roundabout and a small path connecting to the mountain.Boya VillaThe remaining gardens were later diverted and extended due to the development of Genting Highlands.
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