Wong Chuk Hang Station draws few bids from property developers as site requires huge investment
Five bids have been submitted to the MTR, compared with the 36 expressions of interest received in June
A major land site in Hong Kong’s Wong Chuk Hang area has received lukewarm response from developers as it will require as much as HK$37.65 billion (US$4.79 billion) to develop and could become the city’s most expensive real estate on the railway line by 2024.
Five bids were received for phase three development of the site next to the Wong Chuk Hang Station when the tender closed at 2pm on Tuesday, according to the MTR Corporation.
Sun Hung Kai Properties, CK Asset Holdings, Henderson Land Development, Chinachem Group and a consortium consisting of New World Development, Wheelock Properties, Sino Land, China Overseas Land & Investment and K. Wah International submitted bids for the site.
“The number of bids is disappointing and out of expectations,” said Thomas Lam, senior director at Knight Frank.
In June, a total of 36 players had submitted expressions of interest for the tender.
The lack of interest was due to reasons including the high investment costs involved, the need to form consortiums and recent housing policies that hurt sentiments, said Midland Surveyors director Alvin Lam.
“The financial risk of a big project like this is high,” said Lam. “The formation of consortiums also reduces the number of bids.”