Tuen Mun sites get mixed response from developers

Developers have shown a varied response to the tender of two small residential sites in Tuen Mun. A Lands Department spokesman said the Tai Lam site received only three bids while the Siu Lam plot attracted 11 bidders.

Except for Sino Land, most of the major developers did not submit bids for the two sites, both of which have seaviews.

"I previously forecast each site could receive 10 bids. I'm surprised the Tai Lam site attracted only three," said Vincent Cheung Kiu-cho, a national director of Greater China at Cushman & Wakefield.

"It is true that developing luxury flats in the New Territories has a higher investment risk. The only explanation for the poor response is the site is close to Siu Lam Hospital and Siu Lam Psychiatric Centre."

Surveyors said the site was worth between HK$100 million and HK$135 million.

The 22,066 square foot site attracted bids from Sino Land and Emperor International. It can accommodate a low-density residential project with a gross floor area of 28,686 sq ft.

The bidders for the Siu Lam site included Sino Land, Metallurgical Corp of China and Far East Consortium International.

The 21,097 sq ft site could yield a gross floor area of 8,439 sq ft.

Cheung said he expected the site to fetch about HK$38 million or HK$4,500 per square foot.

Alvin Lam, a director at Midland Surveyors, said the Siu Lam site received a better response because it could accommodate houses.

Meanwhile, Centaline's latest Centra-City Leading Index, a barometer of the local property market, fell 0.71 per cent week on week to 119.53, the lowest level in five weeks.