The Government has announced that a residential site at the junction of Tai Chung Kiu Road and On Sum Street in Shek Mun, Sha Tin will be tendered in the third quarter of FY2026/27. The site is estimated to provide around 962 residential units and forms part of the Government's continuing efforts to maintain housing land supply despite already exceeding its annual private housing supply target with the estimated total housing land supply of 15,680 units in the first three quarters of this financial year.
Site Overview
Key particulars of the subject site
Location
Junction of Tai Chung Kiu Road and On Sum Street, Shek Mun, Sha Tin
Lot No.
STTL 626
Proposed Use
Private Residential
Site Area
Approx. 8,015 sq. m. (86,274 sq. ft. thereabouts)
Estimated GFA
Approx. 48,090 sq. m. (517,641 sq. ft. thereabouts)
Estimated Unit Supply
Approx. 960 units
Current Quarter
FY2026/27 Q3 Land Sale Programme
Source: Development Bureau https://www.info.gov.hk/gia/general/202610/15/P2026101500656.htm?fontSize=1
"The Shek Mun residential site is likely to be one of the more attractive land sale offerings in this financial year. Its right-sized development scale of approx. 960 units, excellent connectivity via Shek Mun MTR Station and location within a mature mixed-use district should support broad developer interest. The site's conversion from commercial to residential use also reflects the Government's responsiveness in aligning future land supply with prevailing market demand trends."
Eddie Tsui, Senior Director, Valuation & Advisory Services, CBRE Hong Kong
Location map of STTL 626
Source: GeoInfo Map
Location and Accessibility
The site occupies a prominent position within the Shek Mun district, approx. a 5-minute walk from Shek Mun MTR Station on the Tuen Ma Line. Residents are expected to benefit from convenient rail connections to key commercial districts including Kowloon East, Kowloon West and Hong Kong Island via interchange stations. The area is also served by major arterial roads including Tai Chung Kiu Road, Tate's Cairn Highway and Tolo Highway, providing strong regional connectivity across the New Territories.
Unlike many new development areas, the site is situated within an established mixed-use district featuring residential, commercial, retail and community facilities. Existing amenities within the vicinity include New Town Plaza, Fortune City One, employment nodes of office and industrial developments in Shek Mun and various educational and recreational facilities serving the wider Sha Tin population.
Development Potential
The site was originally planned for commercial development but has since been rezoned for residential use, reflecting evolving market demand and the Government's willingness to optimise land resources towards housing supply. Upon completion in around 2032, the development is expected to comprise approx. 962 residential units across three residential towers together with ancillary retail and public car parking facilities.
Market Commentary
The proposed tender is being launched against a backdrop of gradually improving market sentiment, following the encouraging outcome of the recent Ho Man Tin residential land sale. While expectations of further interest rate hikes remain a consideration, developers have continued to demonstrate appetite for sites offering strong transport connectivity and access to established commercial and community amenities. Sha Tin has historically been one of the more resilient residential submarkets in Hong Kong, benefiting from a sizeable population base and broad housing demand from upgrader households, branch families and cross-district buyers. Consequently, the planned supply of approx. 962 residential units is expected to be readily absorbed by the market.
Market interest is likely to come primarily from medium-to-large developers, with the future development expected to comprise predominantly small- to medium-sized units. Reference to nearby private housing estates, including Lakeview Garden and Pictorial Garden, indicates secondary market prices generally ranging between HK$9,000 and HK$14,000 per sq.ft. (Saleable Area), highlighting the site's established residential positioning within the district. Notably, the immediate Shek Mun area has seen limited new private residential supply in recent years, with most existing private residential developments having been completed more than two decades ago. Given the site's proximity to Shek Mun MTR Station, comprehensive supporting amenities and the scarcity of modern residential stock in the locality, we consider there to be potential for completed first-hand residential units to achieve sale prices in excess of HK$18,000 per sq.ft. (Saleable Area), subject to prevailing market conditions at the time of launch.
Table 1: Residential developments nearby and recent transacted unit price range
Development
Year built
Total number of units
Size range (sq.ft.)
Approx. unit price range (per sq.ft. SA) for typical units
Pictorial Garden
1991-1993
1,734
447 - 1,119
HK$9,000 - HK$11,000
Garden Vista
1989-1990
840
572 - 1,112
HK$10,000 - HK$12,000
Ravana Garden
1988
1,147
384 - 1,188
HK$11,000 - HK$13,000
The Castello
1999
1,744
439 - 901
HK$11,000 - HK$14,000
Fortune City One
1980-1987
10,642
282 - 854
HK$12,000 - HK$14,000
Source: Land Registry transaction records, Centaline Property, Midland Realty and 28Hse. Figures are indicative based on recent transactions as of October 2026.
