A large waterfront mass residential site in Tseung Kwan O offered at a 20 per cent discount to prevailing land prices has garnered a muted response at tender, as the local housing market and economic outlook continues to weaken. The MTR Corp said seven bids have been received for the 10th phase of Lohas Park at the close of the tender on Monday. “The response was a bit disappointing given the lower land cost,” said Victor Lai Kin-fai, the chief executive of consultancy Centaline Professionals. The land premium for phase 10 of Lohas Park was HK$1.65 billion, or HK$2,044 per square foot, when MTR Corp opened the project for tender last month, according to sources who have read the tender document. The land price for Lohas Park phase 10 was 19.68 per cent lower than the rail operator awarded the phase nine portion to Wheelock and Co at HK$2,545 per square foot in December. The land premium was determined by the Lands Department. The tender result come a week after Hong Kong property transactions, comprises of apartments, shops, office and industrial units, eased to 2,583 last month, according to the Land Registry. Midland Realty said the number of transactions were the lowest since the firm started the databank in 1991. Lohas Park phase 10 will comprise 570 to 1,170 flats in two residential towers on a 85,842 square feet site. The project, which will yield a total gross floor area of 811,605 sq ft is expected to be completed in 2022. Analysts estimated the development would incur a total investment cost of HK$4 to HK$5 billion including the HK$1.65 billion land premium. Lai said developers were more skittish about land acquisitions in the wake of a softening property market outlook and growing concerns of a synchronised global slowdown. Sun Hung Kai Properties, Cheung Kong Property (Holdings), Wheelock Properties, Nan Fung Development, and Emperor International were among major developer who bid for the 10th phase. Sino Land, which has formed a joint venture with K Wah International Holdings and Wing Tai Properties, also put in its bid for the project. Last month, the project has received 24 expression of interest when MTR Corp opened the site for initial bidding. Alvin Lam, a director at Midland Surveyors, however, said the outcome was in line with expectations. “The previous phases of Lohas Park have also received a similar number of bidders,” he said.
