Keen bids for last flat site at Tsuen Wan West MTR

PUBLISHED : Tuesday, 22 January, 2013, 12:00am
UPDATED : Tuesday, 22 January, 2013, 5:03am

The government's plan to boost land supply has not put a damper on property developers' eagerness to buy land.

Eight of them have bid for the last residential site at Tsuen Wan West MTR station.

"Although the government says in the policy address that there will be continuous and stable land supply in the future, tendering for this project drew a heated bidding response, with eight submissions, which shows developers are still confident about the market outlook," Midland Surveyors director Alvin Lam Tsz-pun said.

Eighteen developers submitted expressions of interest for the TW6 site, and eight, including Cheung Kong, Henderson Land Development, Sun Hung Kai Properties and New World Development, ended up submitting bids.

The site could provide a total gross floor area of about 675,000 square feet.

The winning developer could build two towers comprising 894 flats, of which 520 units would have to be 538 sq ft or smaller.

The developer would also have to build a 130,000 sq ft public sports centre. Surveyors estimate the site is worth between HK$2.7 billion and HK$3.12 billion, or HK$4,000 to HK$4,600 per buildable square foot.

Vincent Cheung Kiu-cho, national director for China at property consultant Cushman & Wakefield, agreed that eight submissions was "quite good".

He said the flats to be built on the site would have a sea view and might sell for more than HK$8,000 per square foot.

In August, Cheung Kong won the tender for the Tsuen Wan West TW5 Bayside commercial and residential site above the Tsuen Wan West MTR station with a bid of HK$9.63 billion, or HK$4,308 per square foot. That was 13.4 per cent higher than the top market expectation.