Property rebound targeted by MTRC

MTR Corporation plans to put about 4,000 units out to tender in the next 12 months after its interim profit from property development sank more than 90 percent.

MTRC will also introduce contactless credit card ticketing service and hydrogen-fueled cell rail vehicles in the future.

Tung Chung East Station Package 1 is expected to be the first to be put up for tender and the launch of other projects will depend on market conditions, according to MTRC chief executive Jacob Kam Chak-pui.

The tender for the Oyster Bay project, which was withdrawn earlier this year, will be relaunched after terms are adjusted to make the project more attractive to developers, MTRC said.

The company's interim property profit fell to HK$732 million from the high base of a year ago. If the slide continues for the rest of the year, it may have to increase fares by 0.2 percent next year.

The current fare deduction rate stands at 0.8 percent after MTRC's profit from property exceeded HK$10 billion last year. The rate would be cut to 0.6 percent if profit from property drops below HK$5 billion in 2023.

MTRC said it still looks forward to booking profit from the sales of Lohas Park Phase 11 in the second half, but not the Southside Phase 4 and Ho Man Tin Station Phase 2 in light of their construction and sales progress.

It added that it had not yet booked the profit from the sales of some 17,000 residential units as of end of June.

On transportation, MTRC said it is set to introduce contactless credit card ticketing service by year-end.

Design and production of the company's first electric double-decker bus is also under way and it is expected to be completed this year. The company plans to build a fleet of at least 30 electric buses over the next few years.

It is studying the feasibility of introducing hydrogen-fueled cell light rail vehicles. There will be no Special Fare Day this year after August 19, it added.

aiden.he@singtaonewscorp.com

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