MTR rejects all five bids for plot at Tung Chung, Lantau Island, as developers recoil at huge sum needed to build

The companies that submitted bids were among Hong Kong’s largest developers, namely CK Asset Holdings, Sun Hung Kai Properties, Henderson Land Development, Sino Land and the Chinachem Group

Given the costly investment required for the parcel atop MTR’s Tung Chung traction substation, the fact the bids fell short was unsurprising, say analysts

The MTR Corporation has rejected all five bids for a large residential site in Tung Chung on Lantau Island after the plot elicited a cool response from Hong Kong’s developers.

“[MTR] has decided not to accept any of the tender submissions [and] will retender the project in due course,” the rail operator said in a statement. MTR declined to give a further comment.

Given the costly investment required for the parcel, located atop MTR’s Tung Chung traction substation, the fact the bids fell short was unsurprising, according to analysts. With a gross floor area of 929,364 square feet (10,000 square metres), the plot can accommodate between 1,400 and 1,800 flats and would require an estimated investment of HK$11.3 billion (US$1.45 billion) to develop.

The companies that submitted bids were among Hong Kong’s largest property developers, namely CK Asset Holdings, Sun Hung Kai Properties, Henderson Land Development, Sino Land and the Chinachem Group.

“The main reason for the unsuccessful tendering of the Tung Chung Power Distribution Station project would likely be the high land premium of over HK$5,000 per square foot, which is about 10 to 20 per cent higher than market expectations. This might lower the developer’s investment return, and thus affect [their bids],” a surveyor said.

The plot on Lantau Island, where the city’s Disneyland resort and airport are located, received five bids when the tender closed last week. That was far fewer than the 35 expressions of interest the rail operator received in the preceding weeks.

The expressions of interest included ones from mainland China-based home builders such as Vanke China, Kaisa Group Holdings and China Overseas Land & Investment.

Since then, many mainland developers have had to contend with a tightening credit squeeze as Beijing cracks down on risky borrowing.

Kaisa, for example, is selling assets to raise capital for liabilities including a missed payment on a wealth product and US$11 billion of dollar bonds, as it faces a hectoring by Shenzhen’s government. The trading of its shares was halted in Hong Kong.

The developer has put 18 property projects in Shenzhen on the auction block, with a combined value estimated at 81.82 billion yuan (US$12.8 billion), according to a catalogue seen by the Post.

The Tung Chung plot, which is about a 10-minute drive from the existing Tung Chung subway station, could be worth between HK$5.6 billion and HK$7.3 billion, including a HK$4.8 billion land premium payable to the government.

The estimated value translates to HK$6,000 to HK$7,800 per square foot, according to property agencty. After adding in construction costs, the total investment for the site could go as high as HK$12,200 per sq ft.

With flats in the district selling recently for between HK$13,000 and HK$16,000 per sq ft, developers probably found it difficult to justify the investment required, according to a surveyor.

“Given that the development scale [of the site] isn’t that small, the long distance from the MTR station and the infrastructure nearby yet to be completed, it is not surprising that the submitted tenders could not reach the reserved price,” the surveyor said.

The Surveyor expects that the site to be put up for tender again in a year or so when the city’s economy has further recovered from the impact of the Covid-19 pandemic.

(South China Morning Post)

Homebuyers snap up CK Asset’s #Lyos flats in Hung Shui Kiu, boding well for Hong Kong’s Northern Metropolis plan

CK Asset Holdings sold all 200 of the apartments on offer in the first batch of sales at its #Lyos project in Hung Shui Kiu as of 8:30pm

More than 7,500 registrations of interest were received, or 36 bids for every unit earmarked for open sale, while 20 flats were reserved for sale by tender

A weekend sale of tiny flats in Hong Kong’s New Territories got off to a brisk start, auguring well for the proposed Northern Metropolis residential enclave near the city’s northern border with Shenzhen.

CK Asset Holdings sold all 200 apartments through open sales in the first batch of sales at its #Lyos project in Hung Shui Kiu as of 8:30pm, with more than 7,500 registrations of interest, translating to 36 bids for every available unit, while 20 flats were reserved for sale by tender.

The smallest #Lyos flat measures 202 square feet (19 square metres), 50 per cent bigger than a standard car-parking space in Hong Kong, priced from HK$3.53 million (US$453,500). Bigger flats are 443 square feet, featuring two rooms with a private garden of 573 sq ft, priced at HK$7.5 million after discounts.

“These flats are guaranteed to sell out, as the buyer can enter the market with just HK$3 million,” property agent said. “The location in the Northern Metropolis also makes it attractive for buyers, [either] as an investment or to live in.”

The successful launch at Hung Shui Kiu shows how Hong Kong’s residential property bull run has gained momentum in recent months after a brief stumble last year, as the city’s economic recovery and low interest rates bolstered sentiments.

The outlook for the property market brightened after the announcement of a Northern Metropolis plan last month to accommodate 2.5 million residents, as developers rushed to accelerate their launches, the agent said. As many as 2,300 new homes may change hands this month, following the 1,600 transactions in October, the agent said.

CK Asset priced #Lyos at HK$15,503 per square foot on average, a record price for a newly built home in the Hung Shui Kiu area. Due for completion in September 2023, the entire project comprises 41 apartments. A new rail link, the extension of the planned HK$62 billion Northern Link, will connect the area with Shenzhen’s burgeoning Qianhai economic zone.

At Lohas Park in Tseung Kwan O, the buzz had gone out of Kowloon Development’s Manor Hill project, where 68 of 312 flats were sold in the second round, lagging behind last weekend’s launch which found buyers for 78 per cent of the 438 units on offer.

The flats on offer at Manor Hill range from studios to two-bedroom units from 203 square feet to 428 sq ft and prices starting from HK$4.08 million. The price ranged between HK$19,059 per square foot and HK$24,917 per sq ft after discounts.

Hong Kong’s home prices are expected to enter an upwards trend, the agent said. The gauge of lived-in homes compiled by a property agency’s index, had rebounded this week and could hit its record high by the end of the year, the agent added.

(South China Morning Post)

東涌配電站流標 港鐵拒接納5標書

拆解3原因：發展周期長 補地價及分紅比例高

港鐵 (00066) 東涌牽引配電站項目上周截標，昨宣布拒絕接納5份標書，項目「流標」收場，將重新招標，為近7年再有港鐵項目標流。入標財團拆解流標3大原因，包括：發展周期長、補地價金額加上港鐵要求地價分紅過高，強調並非看淡後市。

對本年度供應 政府指影響微

政府發言人指，截至本年第3季，2021/22年度的私人房屋用地供應約1.37萬伙，已超過全年供應目標1.29萬伙。東涌牽引配電站發展項目未能如期推出，對本年度的私人房屋土地總供應影響不大；而政府會繼續加快造地建屋的步伐，預期在本年第四季度仍會有不同來源的用地推出，為市場提供穩定及持續的土地供應。

東涌牽引配電站位於文東路及喜東街交界，住宅樓面上限約94萬平方呎，預計提供約1,400至1,800伙。項目上周四共接獲5份標書，包括長實 (01113) 、新地 (00016) 、恒地 (00012) 、華懋及信置 (00083) ；但港鐵最終宣布，決定不接納任何有關該項目的標書文件，並會於適時重新招標，屬於自2014年天水圍天榮站後再度有鐵路項目流標。

將再招標 發展商非看淡樓市

據其中一間有入標的大型發展商稱，相信流標有多方面原因，其中項目建築工程有一定難度，下方是電力設施，地底亦有東涌綫隧道經過，所以發展周期長達7年半，增加了發展成本及風險。與此同時，項目的補地價水平亦較高，見不到有建築成本上的扣減，所以發展商出價不會太過進取，最終港鐵不願讓步亦只有流標收場。

另一間財團亦稱，流標絕對不是發展商看淡樓市前景的訊號，因為對比近期推出的住宅地不少都以高價批出，認為今次流標只是個別情況，並認為政府要求的補地價金額亦算合理，關鍵是港鐵要求的地價及分紅比例等過高，並稱若果之後重新招標，需要在招標條款上有所修訂才有機會順利批出。

不過，有測量師估計，主要原因是項目補地價偏高，高出比較市場預期逾10至20%，令投資回報降低，因此令發展商對入標價有保留。而另一測量師則指，項目補地價金額水平太高，計及向港鐵支付的分紅，發展商難以合理利潤發展。以東涌東環及昇薈為例，兩個項目每平方呎售價大約1.3萬至1.6萬元。

據資料顯示，項目的補地價金額約47.65億元，每呎補地價約5,072元，另發展商須支付不少於2.5億元入場費，以及不少於15%分紅，但截標前市場對地盤估值只是介乎42.3億至75.2億元，每呎樓面地價約4,500至8,000元，部分測量師認為補地價水平太高，故此有「流標」風險。

(經濟日報)

中銀1.99億購銅鑼灣舊樓

疫情持續平穩，帶動工商鋪交投轉活，市場再錄大手成交。消息指，銅鑼灣軒尼詩道全幢商住物業，以1.99億易手，買家為中國銀行 (香港)，項目料與毗鄰地盤作合併發展。

呎價3.4萬易手

綜合市場消息指出，軒尼詩道470號於上月底以1.99億易手，買家為中國銀行 (香港) 有限公司，以項目總樓面約5800方呎計，平均呎價約34310元。據悉，項目樓齡約50年，樓高5層，地下為鋪位，樓上則為住宅。

資料顯示，中國銀行 (香港) 亦持有同區軒尼詩道472號，並於今年3月獲屋宇署批重建一幢24層高商廈，可建樓面約4.2萬方呎；據業內人士指出，中國銀行 (香港) 將上述兩地盤作合併發展，地盤面積約3500方呎，可建樓面約5.25萬方呎。

柴灣工業城980萬成交

另一方面，工廈市場亦頻錄成交，消息指，柴灣工業城2座中層3室，面積約1508方呎，以980萬承接，呎價約6498元；另外，觀塘華成工商中心亦錄買賣，消息指，該廈中層13室，面積約1354方呎，以970萬易手，呎價約7163元。

(星島日報)