Hong Kong's most recent land tender saw Tai Cheung Holdings successfully bidding HK$1.33bn for a site in Ap Lei Chau which was 14% above market expectations. The luxury site tender attracted strong interest which is a good reflection for developers' confidence for the luxury market; we note that this was an improvement over the recent two tenders which were sold either below market expectations or had bids failing to meet reserve prices. Furthermore, buyer sentiment towards the end of May has improved with newly launched projects oversubscribed, despite the ongoing socio-political uncertainties.