Hong Kong MTR

MTR Corp's Tai Wai tender sweetened with cut in land tax

PUBLISHED : Wednesday, 17 September, 2014, 5:52am
UPDATED : Wednesday, 17 September, 2014, 5:52am

MTR Corp yesterday released the tender terms for the Tai Wai Station residential project as the land premium was cut to a level 18 per cent lower than two years ago in a bid to woo developers.

Under the revised terms, sources said the Land Department cut the land tax to HK$10.36 billion, or HK$3,832 per square foot, compared with the levy of HK$12.7 billion or HK$4,410 per square foot imposed in 2012. The tender, which will close on October 13, came a day after the corporation received an overwhelming response from 23 developers expressing interest in the property.

The site covers an area of 521,107 sq ft and could yield a gross floor area of 2.7 million sq ft. It could provide 2,900 flats and a shopping centre.

MTR Corp proposed to cover HK$7.5 billion or 72 per cent of the land premium in return for ownership of the whole shopping mall, while the developer would own the residential portion of the project.

The winning developer is required to hand over a minimum of 15 per cent of profit to the MTR once 70 per cent of the development cost has been recouped, instead of break even point as previously required.

Separately, Swire Properties released its luxury residential project Arezzo in Mid-Levels West at prices that were as much as 17 per cent lower than the two adjacent towers it launched a year ago. Located at 33 Seymour Road, Swire released the first batch of 50 Arezzo units at an average price of HK$27,159 per square foot, compared to HK$32,837 per square foot set by Agrenta at 63 Seymour Road when it was launched in September last year.

The price is also 11 per cent lower than the HK$30,787 per square foot average transaction prices at Azura, at 2A Seymour Road, in August last year.

The first batch of Arezzo units, due to be completed in March next year, are from 911 sq ft to 976 sq ft each. Units on offer were priced at HK$24,457 and HK$30,307 per square foot, or HK$22.28 million and HK$29.58 million.

Swire said it would offer discounts of 4.25 per cent to buyers who agreed to buy before October 15, and a 4.25 per cent cash rebate for the first 30 buyers required to pay double stamp duty. There is also a 3.25 per cent cash rebate to the first 10 buyers required to pay buyers' stamp duty.