The government on Wednesday announced that it had failed to sell a residential site in Chai Wan, after receiving only one tender.

The Lands Department said it had rejected the sole bid, as it did not meet the government's reserve price.

The site on Cheung Man Road was the first put up for public tender under a pilot scheme for private developers to help build subsidised units.

The site under tender was for not less than 700 residential units, which should be sold at 65 percent of the market price, along with care homes for the elderly.

In a statement, officials said they would not speculate on why the price was not met, adding many factors, such as market conditions and company strategies, played a role.

The government added it would continue to provide more subsidised housing and enrich the housing ladder.

"We will also keep in view the market development, and review in due course if there is a need to adjust some of the key parameters of the Pilot Scheme as well as future tender arrangements for sites under the Pilot Scheme," a government spokesperson said.

"We will also continue to encourage private developers to participate in the Pilot Scheme under the private land approach."

Last week, the government sold a plot in Sha Tin for HK$619 million, the first successful tender of residential land in seven months.