The government released a waterfront hotel site in the former North Point Estate for tender yesterday amid expectations that it will attract keen interest from developers.
The site is west of the North Point bus terminus. The rest of the land was sold to Sun Hung Kai Properties for HK$6.91 billion in July.
"Hotel developments have a longer payback period, but the site is one of the few waterfront locations on Hong Kong Island available for sale. Many developers would be interested in bidding," surveyor Albert So Chun-hin said, estimating the site would fetch bids of between HK$4.65 billion and HK$5.81 billion, translating to HK$12,000 to HK$15,000 per square foot.
But Knight Frank head of valuation and professional services Alnwick Chan Chi-hing made a much lower forecast. Given that returns available from hotel developments are lower than those yielded by residential developments, Chan estimated the site - which must be used for a hotel project - was worth considerably less, at HK$1.86 billion or HK$4,800 per square foot.
The 57,792 square foot site could yield a total gross floor area of 387,504 sq ft.
Under restrictions imposed by the Lands Department, the project built on the site may not be higher than 80 metres above the Hong Kong Principal Datum, which is 1.23 metres below the mean sea level.
The tenders for the waterfront site and a residential site in Sha Tin's Kau To Shan open on February 15 and close on March 22.
The Kau To Shan site covers 86,973 sq ft and could provide a total gross floor area of 130,460 sq ft. The height of the project has been limited to 227.5 metres above the Hong Kong Principal Datum.
The site is next to one bought by the consortium of Wing Tai Properties and Manhattan Realty for HK$1.47 billion or HK$10,302 per square foot on Wednesday.
Centaline Surveyors' director James Cheung King-tat estimated the Kau To Shan site could see bids of up to HK$1.3 billion or HK$10,000 per square foot.
"If a consortium of two developers won both sites they could be developed into a big project. It would increase the value of the sites," he said.
So said that since Kau To Shan had become a high-end residential area, the site could be developed into a luxury residential project.