HK$1.9b price tag on pair of new sites

Sites for homes released by government in Tuen Mun and Sha Tin

PUBLISHED : Wednesday, 15 May, 2013, 12:00am
UPDATED : Wednesday, 15 May, 2013, 4:04am

Two residential sites in Tuen Mun and Sha Tin worth a total of up to HK$1.9 billion were released for tender by the government yesterday.

The tender will open on June 14 and close on July 26.

The site in Sha Tin's Kau To covers 64,046 square feet. It is located atop the Kau To hill and is close to a site owned by Sun Hung Kai Properties. It could yield a total gross floor area of up to 134,496 sq ft. The government has imposed a height restriction in the area.

Sun Hung Kai Properties acquired the nearby site for HK$1.42 billion, or HK$10,885 per sq ft, in March.

The other site up for tender is in So Kwun Wat's Siu Sau Village. The 125,142 sq ft site could provide a total gross floor area of up to 159,372 sq ft.

The building height has been limited to 10 storeys and the site has to provide at least 175 flats, under restrictions imposed by the government.

Another residential site in the area opened for tender on Friday. It closes on June 21. The 37,211 sq ft site located at the junction of Ka Wo Li Hill Road and Tuen Mun Road, near Ka Wo Seaview Villas, could provide a total gross floor area of up to 48,374 sq ft.

Vincent Cheung Kiu-cho, national director of Greater China at Cushman & Wakefield, said: "The plot ratio of the Sha Tin site is higher than the nearby sites sold in the last few years. Also, the sale of Providence Bay, the new luxury residential project in the area, hasn't been strong."

He said he expected the site to fetch less than the other sites sold in the area earlier. "The site is worth about HK$1.21 billion, or HK$9,000 per sq ft," he said. Cheung said he believed the Tuen Mun site was worth about HK$574 million, or HK$3,600 per sq ft. "Prices of finished flats could exceed more than HK$10,000 per sq ft in terms of saleable area," he said.

James Cheung, executive director at Centaline Surveyors, estimates the two sites just released for tender are worth a total of HK$1.9 billion.

"As the Tuen Mun site can develop a low-density project, the winning bidder will probably build houses as well as apartments. The site would attract strong interest from developers as it is close to a well-known international school and this residential area has become popular in recent years," he said.