Sun Hung Kai Properties yesterday won a giant property project at Yuen Long station with a record bid, immediately causing property prices to rise in the area. Within a day of closing the tender, the MTR Corp - acting as the government's sole agent - announced that SHKP subsidiary Success Keep won the project for an upfront lump sum of HK$9.32 billion plus 5 per cent profit sharing with the government-controlled West Rail Company. As the site could yield a total gross floor area of 1.48 million sq ft, the price tag of HK$9.32 billion translates into HK$6,263 per sq ft. "In terms of cost per square foot, it is likely the highest bid for projects offered [along the rail line]," said Victor Lai Kin-fai, chief executive of consultancy Centaline Professionals. The winning bid was about 25 per cent higher than the market expectation of HK$5,000 per sq ft. Victor Lui Ting, deputy managing director of SHKP, said the total investment for the Yuen Long project would be about HK$20 billion. "As the site enjoys a good location, we had to submit an aggressive bid to increase our chances," he said. Centaline's Lai said the winning developer would have to launch the project at HK$18,000 per sq ft to make a reasonable profit. Going prices at Yoho Town phase two development, next to the awarded site - also built by SHKP - range from HK$12,000 to HK$14,000 per sq ft, according to Centaline Property Agency. Marco Mok, an agent at Ricacorp Properties' Yuen Long branch, said asking prices of some second-hand flats in Yuen Long had risen by 5-10 per cent since the award. A 870 sq ft unit adjacent to the station site, offered for HK$9.5 million before the land sale, is now going for HK$10.5 million. The mega project will provide at least 1,876 units with size of the units restricted below 538 sq ft. It is slated for completion in 2022. This project alone accounts for 36 per cent of the government's planned land provision for 5,130 flats in the three months to September. The development would comprise 1.36 million sq ft of residential area and 124,000 sq ft of commercial space. Alvin Lam, a director at Midland Surveyors, said the quick result of the tender indicated the government intention to speed up land sales to meet its annual target of 20,000 private homes.