Property developments along the Mass Transit Railway's Tseung Kwan O extension will face competition from opportunities in other railway projects, especially those with less stringent terms, according to analysts. The profit-sharing scheme of MTR projects put developers not only had to pay land premium to the Government but also had to share profits with MTR Corp. However, such a profit-sharing scheme is not applicable to property projects at West Rail to be released this year at the earliest by the Kowloon-Canton Railway Corp (KCRC). A KCRC spokesman said the corporation would act only as an agent in tendering the West Rail property development rights while all profits generated from selling development rights belonged eventually to the Government. Profit from the developments themselves would belong to the developers. Developments along the Ma On Shan Rail would be similar to the usual MTR projects, said the KCRC spokesman. Surpass Property Strategy managing director Charles Lai Chin-pang said developers might not be keen on the tender of the Tseung Kwan O project because they had better alternatives. He cited the large number of sites in the Government's application list for sale as well as projects along the Ma On Shan Rail and West Rail. 'Land cost for the West Rail projects could be lower [than Tseung Kwan O Area 55b],' he said. Mr Lai also expected the flat prices in Tseung Kwan O would eventually shrink to about HK$2,500 per square foot, considering the abundant supply in the district. Part Central in Tseung Kwan O is for sale at an average price of HK$3,200 per sq ft, about the same price of flats at Metro Harbour View in Tai Kok Tsui. 'Buyers of new residential developments in Tseung Kwan O are paying a premium, as the average transaction price in secondary market is about HK$2,500 per sq ft,' Mr Lai said. The KCRC spokesman said projects along the West Rail and Ma On Shan Rail would be tendered but the schedule had yet to be confirmed. 'Most probably the West Rail projects would go first as the railway is planned to be finished by 2003, a year before the completion of Ma On Shan railway extension,' she said. She predicted some projects could be released for tender this year, following a land grant by the Government. Analysts said the KCRC and the Government might defer the schedule for tendering until property market turned around. About 42 million sq ft of space will be developed along the West Rail and Ma On Shan Rail.