Wong Chuk Hang Station attracts huge interest from property developers, showing worries over vacancy tax appear exaggerated

Hong Kong property developers showed overwhelming interest in bidding for a plot of land atop the MTR station in Wong Chuk Hang, even as the government is poised to released its policy position on the proposed vacancy tax, which would encourage companies to clear their stock of completed, but unsold flats.

A total of 36 expressions of interest, including submissions from Sun Hung Kai Properties, CK Asset Holdings, Henderson Land Development and Sino Land, were submitted for the third phase of development atop the MTR’s Wong Chuk Hang Station, the railway giant said on Wednesday.

The level of interest exceeded expectations as developers had been vocal in expressing their opposition to the vacancy tax, saying the measure, along with other policies to be announced by Chief Executive Carrie Lam Cheng Yuet-ngor, could harm the outlook of the city’s property market.

Mainland developers bidding on the project included Country Garden Holdings and China Overseas Land and Investment.

With a total gross floor area of more than 1.5 million square feet, or the size of 14.5 standard football pitches in Hong Kong, the project is valued at HK$36.14 billion, making it the most expensive railway development in the city’s history, according to Centaline Surveyors.

Mid-sized property companies submitting bids included SEA Holdings and Asia Standard International Group. Analysts said some companies may form joint partnerships to share risks owing to the large investment.