Record 35 expressions of interest in developing Kam Sheung Road Station site, says MTR Corp
MTR Corp says there were 35 expressions of interest by developers in a plot next to Kam Sheung Road Station in Yuen Long on Monday, setting a record for property projects along the West Rail line.
The site, which could accommodate 1,652 flats covering an area of 1.23 million square feet, has an estimated valued of HK$8.4 billion, or HK$6,800 per square foot.
“It is not a surprise to see a strong response to property projects along the MTR and West Rail due to the limited supply,” said Vincent Cheung, deputy managing director for Asia valuation and advisory services at Colliers International.
Local developers including New World, Nan Fung, Wheelock Properties, Cheung Kong Property, Henderson Land, Sino Land and Chinachem Group all submitted expressions of interest before the 2pm deadline on Monday.
The project also attracted mainland builders including China Overseas Land & Investment, China Resources Land, Yuexiu Property Group and Vanke Property (Overseas).
Since the rail merger in 2007, MTR has replaced KCRC as the government’s agent the land along the West Rail. MTR receives an agent’s fee equivalent to 0.75 per cent of the gross return on sales from these projects.
Cheung said his HK$8.4 billion estimate for the value of the site was based on units at Century Gateway atop West Rail’s Tuen Mun Station which are priced at HK$15,000 per sq ft.
“Home prices at Kam Sheung Road Station will catch up with Tuen Mun when the development is due to be completed three to four years from now,” he said.
The railway operator has awarded the first phase development of Wong Chuk Hang Station to Ping An Real Estate Capital, a unit of China’s second largest insurer Ping An Insurance, in partnership with a small Hong Kong firm called Road King Infrastructure.
By February, Ping had encouraged more mainland developers to participate in such projects, he said.
Previously, developments atop railway stations were won by local property giants, he said.