A Hong Kong investor is seeking tenders for a 4,244-square-foot commercial or residential site at Gage Street, Central.
Hong Kong Property Services (Agency), the tender's sole agent, said the site was more suitable for offices.
Investment manager Chan Chi-hi said the Planning Department could grant a 15-times plot ratio for an office development while a residential project would probably be awarded a ratio of eight times.
The site would generate a total floor area of 63,660 sq ft if given approval for offices but 33,952 sq ft for a residential project. Mr Chan said the average transaction price for office spaces along the nearby Hollywood Road and Wellington Street was $4,500 per sq ft.
Grand South Investment is the owner and the tender is scheduled to close for submissions on April 16.
It is the first tender to be handled by Hong Kong Property Services' newly established investment department.
