MTR Corp Ltd (0066) has invited developers to submit tenders for the project at Wong Chuk Hang Station along the South Island Line.
The land premium is set at HK$4.68 billion, or HK$8,119 per square foot, lower than the market expectation of HK$10,000 per sq ft. And the profit sharing ratio stands at 35 percent.
Although the premium is 4 percent lower than the Ho Man Tin project, the whole development cost may not be lower than that, according to Vincent Cheung Kiu-cho, Colliers International’s executive director of valuation and advisory for Asia.
He also predicted the land cost may be as high as at least HK$10 billion, including the land premium.
On Monday, the corporation received 39 expressions of interest from local and mainland developers, although market experts expect only five to 10 developers to submit official bids. Tenders will close on February 27.
The project would see construction of two residential towers housing 800 flats in 576,000 sq ft of gross floor area.
Meanwhile, Vanke Property and New World Development (0017) will launch the sale of 105 more units at their joint-venture Tsuen Wan project, The Pavilia Bay, with price hikes of at least 3 percent after the Lunar New Year holiday.
Prices of particular one-bedroom units will be lifted 12 percent. Discounted prices will range from HK$4.6 million to 24.36 million for units sized from 306 to 1,252 sq ft.
China Overseas Land (0688) plans to open tenders for its four special four- bedroom units at One Kai Tak for one hour on Sunday.
Henderson Land (0012) is expected to put its new Fan Ling project – Eden Manor – on sale in February at the earliest. The developer will publish its sale brochure and open show flats after the Lunar New Year.
Separately, Citi Bank is reportedly offering an interest rate of HIBOR plus 1.3 percent for mortgage loans worth more than HK$7 million – the lowest rate in town.
Citi is also offering 1.5 percent cash rebate to clients, compared to other banks offering 1.4 to 1.45 percent rebate.