MTR opens up two TST sites
25 January 2010
MTR Corporation (0066) is inviting developers for expressions of interest in two residential sites atop its Austin station - the first such move by the railway operator since the onset of the financial crisis in 2008.
Site C covers 135,629 square feet and Site D 159,310 sq ft.
The total gross floor area amounts to 1.28 million sq ft, representing a plot ratio of eight. The sites can deliver around 1,200 homes.
Owing to the development scale, MTRC is considering paying part of the land premiums when it invites tenders to encourage smaller developers to participate in the large-scale project, a source told Sing Tao Daily, sister publication of The Standard.
Midland Realty district sales manager Michael Tse Ka-shing and surveyor Pang Siu-kei expect stiff competition for the sites.
``As far as I understand, the accommodation value will be about HK$10,000 per square foot,'' Tse said. ``I think big developers are very likely to get the projects, as they involve over HK$10 billion.''
Tse said the MTRC's premium subsidy may help small builders, but big developers will be competitive in bidding given their experience in projects atop Kowloon Station. He expects the completed homes to fetch over HK$20,000 psf while the final tender prices are set to boost the secondary market. Pang said the sites are among the bigger developments in Kowloon and will benefit from a number of rail lines. He expects the region to become Kowloon's transport hub.
Pang added that there are already many luxury properties atop nearby Kowloon Station while the proposed terminal of the high-speed rail between Hong Kong and Guangzhou will accommodate commercial buildings.
Tse noted there is currently no property development in the pipeline in Tsim Sha Tsui.
Applications will close on Friday, an MTR spokeswoman said.