Tin Shui Wai, Peng Chau sites for tender

PUBLISHED : Wednesday, 22 February, 2012, 12:00am
UPDATED : Wednesday, 22 February, 2012, 12:00am


Two sites for tender in Tin Shui Wai and Peng Chau could net the government up to HK$765 million, according to property analysts who say they are not typical development sites.

'Demand for commercial sites in Tin Shui Wai and residential sites in Peng Chau is limited,' said Alvin Lam Tze-pun, a director at Midland Surveyors.

The Tin Shui Wai site next to Vianni Cove could be developed into an office block or hotel. As it is close to the Hong Kong Wetland Park, surveyors said it had a greater potential to be developed into a hotel.

'The return on a hotel development would be higher than on an office project,' said Lam, who expects the site to be sold for HK$420 million, or HK$1,500 per sq ft.

However, Ringo Lam Chun-chiu, valuations director at AG Wilkinson & Associates, said it could fetch up to HK$685 million. He said the site was suited to a four-star hotel and serviced apartments that could target mainlanders.

The 69,966 sq ft site is close to the Tin Sau Light Rail station. It could be developed into a total gross floor area of 279,864 sq ft.

Another site at Peng Lei Road, in northeast Peng Chau, could provide a low density residential project.

Midland data shows that prices at nearby Sea Crest Villa estate range from HK$2,000 to HK$3,000 per sq ft.

Alvin Lam said: 'The construction cost of developing a residential project in Peng Chau would be higher than the urban area and New Territories as it is an island. The construction period would also be longer. It would attract local developers only. He expects the site could fetch HK$36.85 million or HK$1,000 per sq ft. Ringo Lam estimated that it could fetch up to HK$60 million.

Two-storey apartments could be located on the 49,127 sq-ft site. The project could provide a total gross floor area of 36,845 sq ft.

Tenders close on Friday.