Kowloon-Canton Railway Corp will launch the tender process for its 255,106 square foot residential site in Tsuen Wan this week, boosted by the sale of a small site nearby which fetched a much higher than expected price on Tuesday. The railway operator yesterday said it will invite developers tomorrow to submit expressions of interest for the waterfront plot above Tsuen Wan West Station that can be developed into seven, 44 to 49-storey residential blocks, providing 1,776 units with a residential floor area of 1.2 million sqft. Developers have until October 6 to express interest in the tender planned for the fourth quarter. Next to the Riviera Garden, the site will be the first of an as yet undetermined number of phases of development that will rise above the station to create 58 million sqft of floor area. Surveyor Albert So Chun-hin said 'developers will offer aggressive prices in the bidding'. Since it is the first site of the project up for tender, they will be thinking about the potential from 'acquiring the remaining phases' as well, he said. Estimating that the investment cost for this phase is HK$5.4 billion, he believes only major developers can afford to bid. Two of the city's largest developers have already expressed interest. Henderson Land Development chairman Lee Shau-kee yesterday said: 'Railway residential projects are our favourite, as their profit margin is higher. The site area and development scale is large enough to be suitable for us to develop.' Victor Lui Ting, an executive director of Sun Hung Kai Real Estate, a sales and marketing unit of Sun Hung Kai Properties, said: 'Demand for railway housing projects is strong while new residential supply in Tsuen Wan is limited.'