Supply will calm bidding wars
Escalating competition among developers in bidding for housing projects along railway lines will ease as the supply of land increases this year, according to developers and analysts.
Wharf (Holdings) assistant director Ricky Wong Kwong-yiu said whether developers would bid aggressively for the railway projects depended on what kind of government land sites were offered for sale this year.
Housing Minister Michael Suen Ming-yeung told legislators on Friday the government would release the land application list for 2005/2006 in March.
Some developers might shift their land replenishment targets from railway projects to the government land lots, Mr Wong said.
Developers big and small showed strong interest in the property projects offered by the MTR Corp and Kowloon-Canton Railway Corp (KCRC) when the two rail firms invited private participation this month.
Eleven developers submitted bids for the MTR's tender of the first phase of its Dreamcity development in area 86 Tseung Kwan O on January 12. Cheung Kong (Holdings) won the site with an undisclosed bid price.
Developers have also shown strong interest in KCRC's Wu Kai Shan station project on the Ma On Shan line, with 17 companies expressing initial interest.
Companies such as Citic Pacific and China Overseas Land & Investment, which faded from the property scene in Hong Kong, have returned to the fray.
However, analysts said the scene could change.
'The keen bidding is because these projects are the first two sites on offer. When the two rail companies continue to offer more sites this year, bidding will slow,' said an analyst at a United States-based investment firm.
KCRC will put four more housing projects - with more than 11,000 flats - up for tender this year. They are at the Nam Cheong, Yuen Long, Tuen Mun and Tsuen Wan West stations on the West Rail line.
It is believed that MTR will tender the second phase of Dreamcity this year.
The whole Dreamcity development will comprise 21,500 flats, to be developed over 10 years.
Mr Wong said he hoped the new application list would include more luxury sites in prime locations.
