Oyster Bay tender pulled

MTR Corp has pulled the tender for the first phase of an Oyster Bay project following similar withdrawals by the Lands Department and Urban Renewal Authority for sites in Stanley and Kwun Tong. The tender closed on Wednesday with only three bids - a nine-year low for MTR projects.

The consortia or developers that made bids were CK Asset, Sun Hung Kai Properties and Wheelock Properties.

The halt to action came after the withdrawal of a tender for Tung Chung Traction Substation Property Development in November 2021.

The estimated value of the Oyster Bay Package One project ranged from HK$3.9 billion to HK$6.5 billion before the closing of the tender, with a per-square-foot cost of HK$3,000 to HK$5,000.

The development is situated atop the MTR Siu Ho Wan Depot and next to the upcoming MTR Oyster Bay station on the Tung Chung Line, expected to be finished by 2030.

Package One is located in the southwestern section of Oyster Bay and boasts a residential gross floor space of 115,700 square meters and a commercial space of around 6,257 sqm.

Thirty-three expressions of interest had been received for the project by the end of 2022.

And in January the MTRC loosened the cap on the maximum number of units to boost the project's appeal. The limit was raised from 1,600 to 1,900 units for an 18 percent increase.

MTRC had announced earlier that if the development proceeded without delays the successful developer could be at a presales level in 2027-2028.

The first occupants could expect to move in around 2030, coinciding with the completion of the Siu Ho Wan station and the 300,000 sq ft Siu Ho Wan shopping center.

Midland Surveyors noted that a few bids for large-scale sites have been withdrawn lately.

A common factor was that projects entailed a substantial investment, leading to a limited pool of participating developers and relatively high investment risks.

The remote site location means a developer must handle complex tasks with high expenses. So the speculation is that developers were cautious to the point the tender was terminated.

Midland proposes breaking down sites to reduce investment risks.

MTRC will relaunch the tender at an "appropriate" time.

himo.liu@singtaonewscorp.com