MTR Corp property director Thomas Ho Hang-kwong said the winning consortium offered profit sharing of more than 25 per cent with the MTRC. He said the railway firm would launch another residential project in Hang Hau Station within two months.

Hampton Victoria Properties director Simon Chow said Wee Investments' move represented Singapore companies' continuing interest in the Hong Kong property market.

He said Singapore developers wanted to diversify their investments as the domestic market had become saturated. Mr Chow said low interest rates would help New World achieve a 30 per cent profit margin after MTRC's share even if the price was at HK$2,500 to HK$2,600 per square foot.

However, Derek Cheung, a property analyst at HSBC Securities (Asia), said the project was likely to generate a low profit margin for New World, provided 25 per cent of profits belonged to the MTRC. He estimated the total development cost at HK$2,100 per square foot, while completed flats could be sold at HK$2,800 to HK$3,200 per square foot.

The project provides 1.04 million sq ft. MTRC will charge the consortium HK$50 million up front for foundation cost reimbursement. The consortium also has to pay a HK$620 million land premium, representing about HK$600 per square foot, to the Government. Seven developers submitted bids for the project when the tender closed last Friday. They included Cheung Kong (Holdings), Sun Hung Kai Properties, Henderson Land Development, Sino Land, Nan Fung Development and HKR International.