37 bids for Wong Chuk Hang MTR lot

MTR Corp (0066) has received 37 expressions of interest from developers for Wong Chuk Hang station package five property development, although the fourth wave of Covid-19 infections continues to weigh on local property market sentiment.

The developers include CK Asset (1113), Henderson Land Development (0012), Sun Hung Kai Properties (0016), Country Garden (2007) and China Jinmao (0817).

The project's value is estimated at between HK$10.1 billion and HK$12.3 billion. Centaline Surveyors director James Cheung King-tat put the project's value at HK$10.2 billion - toward the lower end of market expectations.

Last year, Wong Chuk Hang station package four only attracted six bids from developers after 38 players submitted expressions of interest.

Kerry Properties (0683), Swire Properties (1972) and Sino Land (0083) won the tender for the package four residential project last October. The trio of local developers was reported to be paying a HK$6.76 billion land premium for the plot, or HK$10,587 per sq ft - the highest among all the first four phases of the project.

Package five will provide at least 1,050 homes.

Wong Chuk Hang station property development, situated on Aberdeen Inland Lot No 467, is a development located atop the Wong Chuk Hang MTR depot and adjacent to Wong Chuk Hang MTR station.

Package five is located at the eastern end of the lot, with a residential gross floor area of 636,147 square feet.

The MTRC move comes as Knight Frank expects mass residential property prices to drop by 5 percent.

The luxury housing market is expected to remain flat or fall by 5 percent at most next year.

"Looking ahead, the high unemployment rate and the economic recession will continue to weigh on the housing market. Large-scale layoffs and unpaid leave will persist in 2021. Salary increments are expected to be very small or non-existent, which will undermine purchasing power," Knight Frank said.

Knight Frank also expects a smaller decline of 10 to 15 percent in overall retail rents in 2021.

"Christmas is a typical peak season for the retail market, but the fourth wave of the Covid-19 epidemic has dented consumption sentiment. Consumers have become more used to shopping and dining with the social distancing rules than during previous waves. We expect the continued downtrend in retail sales to narrow in the coming months," Knight Frank said.

In the secondary market, a 957-sq-ft flat at Caribbean Coast in Tung Chung changed hands for HK$9.68 million, or HK$10,115 per sq ft.