MTRC opens bids for Oyster Bay project

MTR Corporation (0066) opens bids for phase 1 of its Oyster Bay project in Siu Ho Wan today, and as many as 1,600 flats and the new station are expected to be ready by 2030.

The cost to convert the existing depot for redevelopment might run into tens of billions of dollars, MTRC property and international business director David Tang Chi-fai said.

He did not reveal the premium to be levied, which reportedly is in excess of HK$8.6 billion.

MTRC will allow the developer to build 1,200 to 1,600 units in the first phase, which will enables the real estate firms to adjust the development plans based on the property market in the future.

Tang estimates the presales could begin in 2027 at the earliest, if the progress goes according to plan, and residents could move in 2030, when the station and the MTR mall is completed.

When asked about the expectations in the bid prices by developers, Tang said the builders have various forecasts in the property market, given the uncertainties in the global economy and the sluggish local real estate market.

But he is confident that the developer could benefit from the project's convenient access to the transportation network and its location, close to Hong Kong's international airport and the bridge connecting the city with Zhuhai and Macau.

Tang said the MTRC had received a maximum of 10 bids for its previous projects, while 33 developers have expressed interest in Oyster Bay, including CK Asset (1113), Sun Hung Kai Properties (0016), Henderson Land Development (0012), Sino Land (0083) and Hang Lung Properties (0101).

The entire project is planned to provide over 20,000 flats for more than 60,000 residents and will have schools and community care centers upon completion.

Meanwhile, the business director noted that the mall at Oyster Bay station would be in medium size and might keep the focus on the daily needs of the residents instead of high-end products.

Tang also said the retail market in Hong Kong has changed from being tourist-oriented to satisfying the needs of residents.

Although traffic in MTR's malls has recovered in December, consumption demand is yet to catch up, said Kenneth Lung Tze-ho, general manager of investment property team 2.

He said the MTRC will continue to monitor the market over January and February, amid the outflow of residents and travel restrictions for overseas visitors.