Interest strong in two residential sites despite uncertain outlook

PUBLISHED : Saturday, 07 January, 2012, 12:00am
UPDATED : Saturday, 07 January, 2012, 12:00am


The bidding for two residential sites, in Tseung Kwan O and To Kwa Wan, received strong interest from developers yesterday, even though the property market outlook remains uncertain.

A government spokesman said the tender for the Tseung Kwan O site received eight bids while the Urban Renewal Authority's site in To Kwa Wan got 17 expressions of interest. The URA project will be up for tender soon.

The Tseung Kwan O site is close to Bauhinia Garden and covers 88,700 square feet. It could be used for a commercial and residential project with a gross floor area of 48,818 sqft. About 91 per cent of the floor area is for residential use.

Sino Land, Nan Fung Development, Cheung Kong, K Wah International, Sun Hung Kai Properties and New World Development are among those that have submitted bids for the site.

Under the conditions imposed by the government, the project must provide 590 to 620 flats and an open space of at least 15,000 sqft. The building height is limited to 100 metres or about 33 storeys.

'The response is good,' said Chan Cheung-kit, a director at Lanbase Surveyors. 'It may be because many developers need to replenish their land banks after they launched their projects last year.

'The site is enough for a large-scale project.'

Chan expected cautious offers for the site as he said the market's outlook remained uncertain.

Surveyors said the site was worth between HK$1.85 billion and HK$1.95 billion.

URA's redevelopment site at Chi Kiang Street has an area of 10,011 sqft and could be developed as a commercial and residential project. It could provide 116 flats, about half of them with a size of 500 sqft. The gross floor area would be 90,202 sqft.

The authority will shortlist the developers and invite them to bid for the tender of the project.