Tuen Mun sites draw 16 bidders

Developers not expected to submit aggressive offers, say property analysts

PUBLISHED : Saturday, 08 February, 2014, 5:13am
UPDATED : Saturday, 08 February, 2014, 5:13am

Surveyors estimated offers in the tender of two residential sites in Tuen Mun which closed yesterday would be conservative, even though the properties attracted a total of 16 bidders.

A Lands Department spokesman said the two properties got eight bids each. Surveyors expect the sites to be worth between HK$1 billion and HK$1.16 billion, or between HK$2,800 and HK$3,050 per square foot.

Vincent Cheung Kiu-cho, national director of Greater China at consultant Cushman & Wakefield, said the response for the tender was in line with his expectations.

"The response shows large and small developers also interested in developing small sites," he added.

Alvin Lam, a director at Midland Surveyors, believes developers would not submit aggressive offers for the sites.

The bigger site at the junction of Tsun Wen Road and Leung Tak Street, near Blossom Court, attracted Cheung Kong (Holdings), Sino Land, K Wah International, Emperor International, the consortium of Regal Hotels and Paliburg Holdings, and Nan Fung Development, among others.

The 33,465 square foot site could yield a total gross floor area of 200,790 sq ft and 370 flats.

Another site at Leung Tak Street covers an area of 26,264 sq ft. It attracted HKR International and Far East Consortium along with Cheung Kong, K Wah, Sino Land and the consortium led by Paliburg. Under the rules of the bid, the site has to have at least 290 flats.

Separately, the Urban Renewal Authority (URA) will invite developers to submit expressions of interest for a commercial and residential site at Pau Chung Street in To Kwa Wan. Developers have to make their expressions by February 17.

The 12,594 sq ft site could yield a total gross floor area of 113,388 sq ft. The project will provide 114 flats, with at least half of the units required to be 500 sq ft or smaller.

Meanwhile, Wheelock Properties vice-chairman Stewart Leung Chi-kin said the company planned to launch four residential and one commercial project this year.

The first would be the second phase of The Austin in West Kowloon. The company generated nearly HK$10 billion from property sales in 2013.