bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

The government is likely to heed developers' calls for top-end sites when it announces details of first batch on offer

Luxury residential sites are expected to dominate land sales this month, in response to calls from leading developers.

But realtors said the government may include other  types of sites in its application list for land sales to satisfy the needs of smaller players with different property appetites.

Real Estate Developers Association president Stanley Ho Hung-sun said about eight to 10 sites would be included in the application list, when the government announces details of the land sales programme later this month.

The government  halted land sales  in November 2002 in order to prop up  a weakening property market.

The market has made  estimations of sites to be included in the application list, based on sites  previously withdrawn from sales.

Luxury sites widely tipped to be  included in the land sales programme this year include  a 0.73 hectare site at Mount Kellett Road on The Peak, a 0.59 hectare site at Ede Road in Kowloon Tong, and a 1.05 hectare site at Borret Road in Mid-Levels East.

The three sites could fetch the government up to $4 billion.

Some realtors expected a variety of  sites to be included in the application list.

'If only luxury sites were put on the list, there would be a risk of oversupply of luxury residential projects in the market,' said Centaline Property Agency Chairman Shih Wing-ching.

But SK Pang Surveyors managing director Pang Shiu-kee said he would not be surprised if the government included mostly luxury land in the first batch of properties in the application list. He said this would satisfy a widespread call for luxury sites.

'I expect the government to put a variety of land in the forthcoming land sales this year to satisfy different developer needs,' he said.

An example of mid-range residential land expected to be sold this year is the Tin Kwong Road Police Married Quarters, with a gross floor area of 1.62 million square feet.

The property has an estimated value of between $1.62 billion  and $3.9 billion (or an accommodation value of between $1,000 per square foot and $2,400 per square foot).

'Considering the district and the neighbourhood, the land should not be classified as a luxury site,'  Mr Pang said.

Both Centaline Surveyors and Midland Realty expected a piece of land located at the junction of King Fuk Street, King Tai Street and Prince Edward East, in San Po Kong, to be sold for $2.1 billion (or an  accommodation value of $1,700 per square foot).

Another highly desired piece of land among developers is located at Oil Street, North Point. The land, with a gross floor area of 1,665,587 square feet, is the largest  of the government sites tipped to be sold this year.

Centaline Surveyors estimated its worth at $4.65 billion.

'The site, which has a mix of residential and commercial usage, will probably include a mall or even a hotel with residential development,' Mr Pang said.

'Small developers are not likely to acquire it.

'The government has shelved the site for years and will not sell until a really desirable price is reached.

'Such a large piece of land is a rarity on Hong Kong Island,'  he said.

The government is also expected to include land in the New Territories to satisfy the needs of small developers.

One example is the 1.22 hectare site at Tung Lo Wan Hill Road, Sha Tin, estimated by Midland Realty at $373 million.



Luxury sites to fill out application list, agents say