Developers have shown initial interest in Kowloon-Canton Railway Corp's 1.81 million square foot residential project in Wu Kai Sha, which is up for tender this quarter. Cheung Kong (Holdings), New World Development, Wharf (Holdings) and K Wah International said they intended to bid for the project to enlarge their property portfolios. Cheung Kong executive director Justin Chiu Kwok-hung said: 'I expect the project will be very popular among land-hungry developers.' Developers said they would bid aggressively as the project would be an important source of land supply this year. Wharf assistant director Ricky Wong Kwong-yiu said: 'It is believed that developers will face obstacles to successfully applying for land sites on the application list, with our offers failing to meet the government's target prices. 'As a result, there will be a small number of public sites offered for auction this year.' Under the application list system, a developer proposes a price to the Lands Department and undertakes to offer that amount. If the government's target price is met, the parcel is brought to tender or auction. Mr Wong said the government had no intention to cut its reserve prices despite repeated calls from developers. 'Not only the Wu Kai Sha development, other property projects owned by the two rail firms - KCRC and MTR Corp - will be developers' focus this year,' he said. KCRC yesterday placed an advertisement on English and Chinese newspapers, inviting expressions of interest in the residential development at Wu Kai Sha Station on the newly commissioned Ma On Shan railway line. The project will provide 2,528 flats with a floor area of 1.81 million sqft, along with 43,000 sqft of retail space. Property agents estimated investment costs at about $7 billion, based on an accommodation value of $2,700 per square foot. New World Development sales and marketing director Barbara Ho Ng Yin-yue is optimistic about the development at the Wu Kai Sha Station despite its relatively remote location. 'Tseung Kwan O used to be a pretty remote area, but as it has rail access, which is followed by improved facilities, the district now turns out to have good potential for residential development,' Ms Ho said.