The Lands Department is making land premium claims, totalling about HK$3.8 billion, for three residential developments owned separately by Sun Hung Kai Properties (SHKP) and Kowloon-Canton Railway Corp (KCRC).
Analysts said the premium offers for the conversion of land use could eventually draw appeals from the developers due to continuous market weakness.
Sources said the Lands Department would charge SHKP slightly less than HK$1 billion, representing an average land price of less than HK$1,300 per square foot, for a residential redevelopment in Sha Tin.
The department would make another large premium offer of about HK$2.3 billion to KCRC by early next month for a 1.5 million square feet residential-retail development at Ho Tung Lau depot in Sha Tin. The offer represents an average of HK$1,500 per square foot.
Sources said the department had made an offer of HK$500 million for another proposed KCRC residential development in Tin Shui Wai.
The SHKP project involves the land-use conversion of three adjacent agricultural lots near Tung Lo Wan Hill Road in Sha Tin, which will provide residential area of 742,000 sq ft. SHKP has been in talks with the government for years on the land premium charge.
