Sino Land, Wang Kee bid for Sha Tin site
Sino Land and Wang Kee Construction joined the government tender for a commercial site in Sha Tin's Shek Mun industrial district yesterday. The Lands Department did not disclose the number of bids received.
Surveyor Chan Cheong-kit, director at Lanbase Surveyors, said the lacklustre bidding for the site was expected.
'The site is located in a non-core commercial district. Selling prices of the project would not be high when the project is completed so it is not attractive to the developers,' Chan said.
'Most developers are focused on residential development rather than commercial projects because they offer higher returns.'
Chan said the site may attract companies who want to develop their own headquarters.
'They may keep most of the floor area for their own use. The facilities of the building will fit their requirement and the construction cost will be lower,' he said.
The commercial site is located at the junction of On Yiu Street, On Kwan Street and On Lai Street in Shek Mun industrial district.
The 91,849-square-foot site can accommodate all kinds of commercial projects, excluding a hotel development. It could provide a total gross floor area of 459,246 square feet. The Planning Department has imposed a building height restriction of 115 metres (about 29 floors).
The site has been removed from the land application list but the Lands Department said they had received strong interest from a developer and decided to put the site up for tender from August 13 until September 17.
James Siu, a director at property agency Savills, estimated the site would fetch between HK$918 million to HK$1.15 billion. That translated into HK$2,000 to HK$2,500 per square foot of gross floor area.
