Monday's public auction of two residential sites could put up to $1.6 billion into the Government's coffers, according to surveyors. The two sites - one in West Kowloon and one in Tai Po - are seen as the latest barometer of developers' confidence in the housing sector. Surveyors said developers would bid cautiously. The 74,734 square foot site on reclaimed land in West Kowloon is estimated to fetch between $1.1 billion and $1.45 billion, or equivalent to an accommodation value of $2,000 to $2,600 per square foot. The 161,298 sq ft low-density site in Tai Po is expected to be sold at $145 million, or $1,500 per sq ft. Landscope Surveyors managing director Koh Keng-shing said developers' confidence in the outlook for the housing sector had improved with recent news such as the positive economic figures and the mainland's imminent entry into the World Trade Organisation. Mr Koh said developers remained concerned over the increasing supply of flats in the long run. Some big players were not rushing to accumulate land banks in the light of their sizeable land reserves. 'Aggressive bidding is not expected,' he said. Surveyors expected small and medium-sized developers to dominate the sale. But some major players like Hang Lung Development - which has a small land bank - could join the fray. Sino Land is tipped as a possible bidder for the West Kowloon site in light of its strong presence in the area. The site, adjoining the waterfront of the reclamation area, is close to the Island Harbourview residential project developed by a Sino Land-led consortium at the Olympic Station in Tai Kok Tsui. The West Kowloon site can provide a gross floor area of 560,503 sq ft, of which 485,768 sq ft should be for residential use and the remaining for non-industrial excluding office, hotel and serviced apartments. S K Pang Surveyors managing director Pang Shiu-kee said bidding would slow if bids for the West Kowloon site reached over $1.1 billion, or more than $2,000 per sq ft. Mr Pang said the location of the site was attractive but insufficient transport facilities could dampen some developers' bids, adding that there was no bridge connection to the Olympic Station. Chung Sen Surveyors director Cheng Wing-ming made a cautious estimate on the West Kowloon site, predicting a transacted price of $1.15 billion. Mr Cheng predicted home prices in the medium term would remain at current levels in view of the adequate supply. In light of the current selling price of Island Harbourview at about $4,400 to $4,900 per sq ft, he expected the selling price of completed units at the West Kowloon site to remain at that level. Surveyors took a more cautious view on the Tai Po site due to the large supply in the New Territories. The low-density site is close to The Paramount, developed by Cheung Kong (Holdings). With a plot ratio of 0.6, it has a total developable area of 96,779 sq ft. The site coverage is 25 per cent, with a maximum number of three storeys and the maximum number of units at 89.