May 20, 2026
Tung Chung Area 106A Site Awarded at Higher-Than-Expected Price

The Hong Kong Government has officially awarded the Tung Chung Area 106A residential site (Tung Chung Town Lot No. 54) to Able Best Limited, a unit associated with Able Engineering Holdings, at a land premium of HK$1.627 billion.
The result surprised much of the market because the winning bid exceeded most analyst expectations and represented a substantial premium over the adjacent Tung Chung Area 106B site awarded last year to Sun Hung Kai Properties.
The tender attracted six bids from major developers and consortiums, including SHKP, Sino Land/Kerry Properties consortium, China Overseas, K. Wah International and others, highlighting renewed developer interest in strategically located large-scale residential land in Hong Kong.

Key Tender Results

Item	Tung Chung Area 106A
Awarded Developer	Able Best Limited
Parent Group	Able Engineering Holdings
Land Premium	HK$1.627 billion
Site Area	Approx. 152,332 sq ft
Maximum GFA	Approx. 533,172 sq ft
Estimated Residential Units	About 990
Estimated AV per sq ft	Approx. HK$3,050
Lease Term	50 years

The accommodation value of roughly HK$3,050 per sq ft was significantly above earlier market expectations of around HK$1,800–2,800 per sq ft and more than double the HK$1,501 per sq ft benchmark achieved by the neighboring Area 106B site in February 2025.

Comparison with Adjacent Area 106B Site Awarded to SHKP

The strongest market focus immediately turned to the comparison between the new 106A transaction and the neighboring Area 106B residential site acquired by SHKP last year.

Item	Area 106A (2026)	Area 106B (2025)
Winning Developer	Able Engineering Unit	Sun Hung Kai Properties
Land Premium	HK$1.627 billion	HK$602 million
Accommodation Value	~HK$3,050 psf	HK$1,501 psf
Maximum GFA	533,172 sq ft	401,149 sq ft
Estimated Units	~990	~745
Market Response	6 bids	4 bids

The latest transaction effectively resets pricing expectations in Tung Chung East and may become one of the first clear signs that developers are beginning to price in medium-term residential recovery. (Reported by Building.hk)

(MTRC)