Next phase of Hong Kong's Lohas Park development could net government HK$3.7 billion in revenue

MTR Corp has opened phase seven of its Lohas Park project to potential bidders to develop a site that analysts say could carry a land premium of HK$3.7 billion.

The site, near Tseung Kwan O, will be designated for residential and commercial use, opening the way for a new shopping centre development in an area that has been served by just two supermarkets for many years.

Alvin Lam Tsz-pun, a director at Midland Surveyors, told the South China Morning Post he expected the land premium payable for phase seven to hit HK$3,000 per square foot - higher than the HK$2,000 per square foot in previous phases, which were designated solely for residential development.

Based on Lam's calculations, the levy for phase seven could be HK$3.7 billion.

Lohas Park phase seven will comprise 1,250 housing units in two residential towers sitting on top of a 478,998 sq ft shopping centre near MTR's Lohas Park station.

Submissions of expression of interest will close on May 4. The commercial project is expected to be completed as early as 2020 and the whole project is scheduled to be finished by 2022.