HKR International is negotiating with the Lands Department to increase the plot ratio for its large residential development at Tung Chung station, on the airport railway line. The company is undertaking the second-phase property development at the station in a joint venture with Hong Leong Group, the Singapore Government Investment Corp's subsidiary Recosia, and Hongkong China. HKR executive director Loretta Ho said the consortium would conduct a study on the potential impact of a higher plot ratio on the Tung Chung development. The study would focus on whether the existing master plan for transport and the environment would be affected by additional units to be built under a higher plot ratio, she said. She declined to disclose the plot ratio the consortium planned to seek. She said the ratio for the residential development on Tung Chung phase two was 2.5, which was lower than the ratio of five in urban areas. The Tung Chung second-phase project comprises a gross floor area of 2.04 million square feet, or 2,678 flats and 26,910 sq ft of retail space. 'The long-term housing strategy is exploring ways of increase housing supply,' she said. 'It will be good in all aspects if we can increase flat supply without affecting the overall master town planning [at Tung Chung]. 'The most convenient way to achieve this is giving a higher plot ratio, to increase the number of flats build on the existing sites.' Mass Transit Railway Corp (MTRC) chairman Jack So Chak-kwong recently said the MTRC wanted to increase the plot ratio of developments along the Tai Kok Tsui and Tung Chung stations to produce an additional 4,000 units. Ms Ho expressed confidence that the MTRC would get the green light from Lands Department to increase the plot ratio on sites at Tung Chung station. Analysts said the HKR-led consortium had bid aggressively for the Tung Chung second-phase development. They expected the development would have to sell at $7,000 per sq ft in order to generate a reasonable profit for the winning parties. If the proposed higher plot ratio on the Tung Chung station was approved, the commercial value of the development would certainly be enhanced, analysts said. On the sale of Discovery Park in Tsuen Wan, Ms Ho said there was no competition for home-buyers, although the sale coincides with the sales of Cheung Kong's Laguna Verde in Hunghom and Kingswood Villas in Tin Shui Wai. End-users would not be affected, as the projects targeted different income groups, she said.