Government offers lower-than-expected land premium on Ho Man Tin Station development site
Premium for the “package one” development is likely to be HK$6.28 billion, or HK$8,459 per square foot, according to source
The Hong Kong government is offering a lower-than-expected land premium, or levy charged for a change in land use, on a luxury residential site being offered for sale above Ho Man Tin Station, in a bid to drum up interest among land-hungry developers.
The premium for the “package one” development is likely to be HK$6.28 billion, or HK$8,459 per square foot, according to a source, who has read the tender document.
MTR Corp offered the project for tender on Thursday, and the levy is 29-43 per cent lower than market expectations of HK$8.9-11 billion.
There had already been 28 expressions of interest filed by developers for the Kowloon site by November 21.
Despite the lower levy, the rail operator still expects to raise its profit-sharing ratio on the site to 35 per cent from the average of 10-15 per cent on other development sites along MTR lines.
Vincent Cheung Kiu-cho, executive director of valuation and advisory services for Asia at Colliers International, said the profit-sharing ratio has been set higher because MTR wants to secure higher profit from the project.