Developers snub housing project in Tin Shui Wai after policy address
Just three bids are received for Tin Shui Wai project after announcement of boost to land supply
Only three bids were received yesterday in the tender for the Tin Shui Wai residential project as developers were spooked by a government policy to boost the supply of land.
Cheung Kong, Sun Hung Kai Properties and Sino Land submitted bids, while the remaining 13 developers who had turned in expressions of interest did not join the tender.
"It is worse than my expectation of receiving five or six bids," said Charles Chan Chiu-kwok, managing director at Savills Valuation and Professional Services.
"I believe it is because of the policy address last Wednesday.
"The policy address shows that the government will increase housing and land supplies significantly and most of the housing supply will come from the New Territories. It made the developers worried [about] the market outlook, particularly the housing market in Tin Shui Wai."
The government aims to provide 470,000 flats in the coming 10 years. It is the second attempt by the MTR Corp to tender the residential project next to Tin Wing Light Rail Station. The project was withdrawn from tender last February because none of the 16 developers submitted bids.
To lure developers, MTR Corp has scrapped the requirement in the original tender that the winning bidder has to pay HK$400 million for site formation works.