MTR Corp Limited (0066) received at least 24 expressions of interest for developing Phase 10 of Lohas park.
Many large local developers showed interest, including New World Development (0017), Nan Fung Group and Wheelock (0020). Top mainland firm Overseas Land & Investment (0688) and the local unit of Vanke also submitted bids.
Lesly Lam Lik-shan, assistant operations director of Vanke Property (Hong Kong), said the location of the project is prime as it has a harbor view. Lam expressed hope the government would set the land premium according to the market price, which estimates the site to be worth between HK$1.91 billion and HK$2.43 billion.
Centaline surveyor Victor Lai Kin- fai believes the slowdown in new home sales and the slide in prices may affect developers' bids, which may be lower than the government's set land premium, which may in turn lag behind the market.
Lai estimates per square foot price for the site at HK$2,350, and it was difficult to say how many developers would bid for the site at the end.
Midland Surveyors' director Alvin Lam Tsz-pun said whether all 24 developers would actually bid for the site depended on the land premium and terms for tender.
Regarding the withdrawal of a Yuen Long site from tender last week, when no bids met the government's reserve price, Lam said that would have no effect on the Lohas Park project.
Covering 85,000 square feet with 812,000 square feet of building area, two blocks are to be built on Phase 10 of Lohas Park to provide up to 1,170 units. Construction is expected to be complete by 2022.
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