MTR’s Tung Chung sale draws a tepid response as developers recoil at huge sum needed to build in inconvenient location
- The parcel atop MTR’s Tung Chung traction substation has a gross floor area of 929,364 square feet (10,000 square metres), which can house between 1,400 and 1,800 flats that need HK$11.3 billion (US$1.45 billion) to develop
- Five companies submitted bids, out of the 35 that expressed interest to bid last month
A major sale of residential land in Hong Kong drew a tepid response from developers, as six of the seven companies that showed interest last month recoiled at the investments needed, in a possible shift in priorities amid the government’s plan to build a Northern Metropolis near the city’s border with Shenzhen.
A plot in Tung Chung on Lantau Island, where the city’s Disneyland resort and airport are located, received five bids, according to MTR Corporation. It was far fewer than the 35 expressions of interest the rail operator received last month.
The parcel, located atop MTR’s Tung Chung traction substation, has a gross floor area of 929,364 square feet (10,000 square metres), which can accommodate between 1,400 and 1,800 flats that require HK$11.3 billion (US$1.45 billion) to develop, surveyors said.
“The collective cold shoulder reflects the high investments needed, coupled with the site’s inconvenient location,” said Vincorn Consulting and Appraisal’s managing director Vincent Cheung, adding that unlike other plots located near MTR’s subway stations, the stop nearest to this parcel would not be completed until 2029.
The companies that did submit bids were the Who’s Who of Hong Kong’s property developers: CK Asset Holdings, Sun Hung Kai Properties, Henderson Land Development, Sino Land and the Chinachem Group.