Keen interest in Tseung Kwan O site
Paggie Leung and Peggy Sito
The government is expected to get as much as HK$1.22 billion from the sale of a residential site in Tseung Kwan O available for tender until Friday, surveyors say.
The winning bid for the 54,099 sq ft site in Area 66D1 of Tseung Kwan O, located near the Tseung Kwan O MTR station and Evangel College, will likely be pitched at HK$1.19 billion to HK$1.22 billion, surveyors estimate. That's between HK$4,000 and HK$4,100 per buildable sq ft.
Offering a total gross floor area of 297,550 sq ft, the site must be developed into at least 360 units and 378 units at most in terms of the tender conditions, which means an average apartment size of roughly 716 sq ft. Alvin Lam Tsz-pun, a Midland Surveyors director, said the site was likely to fetch a price of around HK$4,000 per sq ft, which would put it in the same price bracket as a neighbouring site sold to Sun Hung Kai Properties in May for HK$1.033 billion (HK$4,009 per sq ft).
'Smaller developers can also compete for this site because its lump sum amount is not too high, thus the risk is lower,' said Lam, who expected as many as 10 developers to submit bids.
Cheung Kong executive director Justin Chiu Kwok-hung said the group planned to submit a bid for the site even though its location was not as attractive as that of two other sites in the area which provide full sea views and would later be put up for sale.
One of the sites will be put up for tender next month and the other is on the government's land application list.
Vincent Cheung Kiu-cho, national director for valuation at real estate consultancy Cushman & Wakefield, said the site up for tender this week was one of the smallest in the area.
'It's also a bit further from the MTR station than some sites sold previously, and its view could be blocked by the other two sites which are yet to be sold and are closer to the seaside,' he said.
Cheung believed the site would attract about six to eight bidders.
He did not expect bidding for the sale to be affected by recent adverse developments - including the decision by MTR Corporation to withdraw a site in Tai Wai from auction because of poor offers, and the sale of a prime North Point site to developer Sun Hung Kai at a price that was below market expectations.
He expected that the flats to be built on the site would be sold at around HK$7,500 to HK$8,000 per sq ft.
Centaline Surveyors said the site could be sold for HK$4,000 per sq ft.
The number of housing sales in the 50 housing estates monitored by Ricacorp Properties from July 9 to 15