The last land-auction for this fiscal year is expected to add between HK$230 million and HK$350 million to government coffers, raising full-year auction revenue to about HK$2.7 billion, according to surveyors. Next Monday will see two small residential sites in the New Territories offered for sale. Located at Hoi Chu Road, the 65,553 square foot Tuen Mun residential site is predicted to fetch between HK$200 million and HK$320 million. It can be developed at a plot ratio of from five to 9.5 times, depending on how much retail space the developer plans to build. The 45,210 sq ft Tai Po Kau residential site in Area 11 can provide 27,100 sq ft of floor area, with an estimated value of HK$30 million to HK$46 million. The Government has auctioned 12 sites this financial year, reaping HK$2.39 billion from the sales. The highest price gained was for a waterfront commercial site in Hunghom Bay for which Cheung Kong (Holdings) paid HK$1.09 billion. The second most valuable plot, another commercial lot in Hunghom Bay, went to Cheung Kong for HK$655 million. Midland Surveyors director Ronald Cheung estimated the two sites to be auctioned on Monday would add HK$269.9 million, boosting the total auction revenue for the year to HK$2.66 billion. Mr Cheung said as the Government was conscious of the impact of land prices on the property market, it would avoid disposing of land at low prices in the coming year. He expected it would continue to release smaller sites for sale, as it has in the past year, with large plots such as the Oil Street residential site to be put on the reserve list. He said smaller sites also would be sought by some construction companies which had joined bidding recently - fuelling a better auction response. Ricacorp Surveyors director Kenneth Cheung expected medium-size and small developers would be active at the coming auction, following the increased transaction volume of the property market in recent months. He said the Tuen Mun residential lot on offer was next to Nerine Cove and The SeaCrest, which were valued about HK$2,400 per square foot. He expected developers would not build any retail space on the site due to the predominantly residential neighbourhood. Based on these assumptions, Mr Cheung estimated the lot would be sold at HK$229 million, or an accommodation value of HK$700 per square foot. However, SK Pang Surveyors managing director Pang Shiu-kee said commercial space would still have some value in the location and the plot ratio employed by the developer would be 6.28 times. Thus, he estimated the site was worth HK$320 million, with HK$700 per square foot in accommodation value. Mr Pang said the low-density Tai Po Kau site, despite being small, would give an indication to the selling price of the neighbouring Constellation Cove, owned by Kerry Properties, which had yet to be offered for sale. Based on the transaction price of another neighbouring project, Emerald Palace, at HK$3,000 to HK$3,200 per square foot, he estimated the site would fetch HK$32 million, with an accommodation value of HK$1,200 per square foot. Mr Cheung, of Ricacorp, expected the Tai Po Kau lot to be sold for HK$45.9 million at an accommodation value of HK$1,700 per square foot, given residential property in the area was traded at HK$3,500 per square foot. Midland Surveyors' Mr Cheung said the Tuen Mun site had a long, rectangular shape which would restrict the flexibility of development and it would be affected by noise from the neighbouring Light Rail and roads. He expected the site would be sold for HK$236 million, or HK$720 per square foot. He said the Tai Po Kau site was in a quiet environment, but construction costs would be higher due to work needed to strengthen a neighbouring slope. He expected the site would be sold for about HK$34 million, or an accommodation value of HK$1,250 per sq ft.