A site in Shau Kei Wan attracted eight bids when the tender closed on Friday.

The plot at Shau Kei Wan Main Street East, which has a site area of 1,349.2 square meters, could provide a maximum gross floor area of 12,142 square metres for private residential purposes.

Latest market estimates have valued the plot at between HK$800 million and HK$1.2 billion, or about HK$5,300 to HK$8,000 per square foot.

Cyrus Fong, an executive director at Knight Frank, said developers appear to be interested in the site.

"Overall, the market atmosphere this year is better than last year, and we've seen fewer failed tenders, especially as land prices also gradually rose after the reduction in interest rates," he said.

"There's still a large amount of inventory across the city, so many developers may not opt for aggressive pricing to secure the sites.

Alvin Lam, a director at Midland Surveyors, also said developers may be keen because the investment amount involved is relatively small and therefore poses lower risks.

The site’s location, he added, is attractive as it's near the district's MTR station and offers well-developed infrastructure.