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August 3, 2026 China Overseas Wins HK$6.9 Billion Hung Hom URA Redevelopment HONG KONG — China Overseas Land & Investment has secured the Urban Renewal Authority (URA) redevelopment project at Bailey Street and Zhejiang Street in Hung Hom with a winning bid of HK$6.902 billion, representing an accommodation value of approximately HK$9,362 per sq ft, about 19% above the upper end of market expectations. Aggressive Bid Secures Landmark Waterfront Project
Industry observers believe the decisive factor behind China Overseas' success was its aggressive pricing strategy, as the URA primarily awards tenders based on the highest bid while taking technical proposals into consideration.
The Hung Hom site is regarded as one of the few remaining large-scale waterfront redevelopment opportunities in the urban core. Its harbourfront location, mature transport network and established community facilities offer strong long-term development potential for a premium residential project. In addition to its financial offer, the successful tenderer is required to incorporate public benefits into the development. These include providing an outdoor public space linking the project to Hoi Sham Park and constructing an elderly care facility as part of the community development programme, enhancing the project's social value and technical assessment.
Strong Demand for Prime Urban Land
Despite ongoing adjustments in Hong Kong's residential market, demand for quality urban sites—particularly those close to MTR stations and waterfront areas—remains resilient.
The project is expected to provide approximately 1,200 residential units, mainly one- and two-bedroom apartments targeting first-time buyers, owner-occupiers and upgrading families seeking homes in established urban districts.
The strong participation of developers, particularly major mainland-backed companies, reflects continued confidence in the long-term prospects of Hong Kong's prime residential market and the strategic importance of replenishing land reserves with high-quality sites.
Development Cost and Profit Outlook
Based on available market estimates, the project involves:
Land premium: HK$6.902 billion
Estimated construction and related development costs: Approximately HK$3.69 billion, calculated at around - HK$5,000 per sq ft for the project's gross floor area of approximately 737,200 sq ft, including community facilities and the elderly care home.
Estimated total development cost: Around HK$10.6 billion, excluding financing costs.
Under the URA tender conditions, if residential sales revenue exceeds HK$13.3 billion, the developer will be required to share 20% to 30% of the excess proceeds with the URA.
Should the completed units achieve an average selling price above HK$20,000 per sq ft, total sales revenue could exceed HK$14.7 billion. Even after accounting for development costs and the profit-sharing arrangement, analysts believe the project could still generate healthy returns while strengthening China Overseas' position in Hong Kong's premium residential market.
Strategic Long-Term Investment
Market analysts view China Overseas' successful bid as a forward-looking investment despite the relatively high land cost and the URA's profit-sharing mechanism.
The scarcity of sizeable waterfront development sites in the urban area, together with sustained end-user demand and the redevelopment potential of Hung Hom, is expected to support the project's long-term value and reinforce the developer's brand presence in Hong Kong.
According to market reports, the other bidders included CK Asset Holdings, Sun Hung Kai Properties, K Wah International Holdings, Chinachem Group and Wheelock Properties. Kerry Properties submitted a joint bid with Sino Land and Great Eagle Holdings. (Reported by Building.hk)
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