2025-02-21 28Hse Editor
The Urban Renewal Authority (URA) has received a minimum of six bids for the redevelopment project at Shing Tak Street/Ma Tau Chung Road in Kowloon City. The tenders came from developers such as New World Development (0017), Wheelock, Sino Land (0083), and K Wah International (0173).
As one of the pilot schemes for the redevelopment of buildings owned by civil servants co-operative building societies, the project has attracted 32 expressions of interest earlier. The project's market valuation is estimated to be between HK$2.38 billion and HK$3.11 billion, or HK$5,740 to HK$7,500 per square foot.
Vincent Cheung Kiu-cho, Managing Director of Vincorn Consulting and Appraisal, suggested that the recent unsuccessful bids for two sites in Tung Chung might not necessarily affect the pricing strategies for this project. Nonetheless, the high number of projects nearing completion in East Kowloon and the current high-interest environment might influence the bids. He did not rule out the possibility that the sale could fail.
The project, spanning 46,103 square feet, is projected to generate approximately 640 homes. Market observers speculate that if the project fetches more than HK$8.25 billion, equivalent to HK$19,884 per square foot, 40 percent of the additional profit would be allotted to the URA as a bonus dividend.
According to JLL, since the beginning of 2022, four government sites, excluding MTR Corporation (0066) and URA plots, have failed to sell. This number surpasses the total of three sites that failed to sell over the seven-year period from 2015 to 2021. JLL anticipates more land tender withdrawals in the future.
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