The Urban Renewal Authority has received eight bids for its Ma Tau Kok development project in Kowloon.
The warm response came as developers believe future housing prospects remain positive, with buyers’ purchasing power still sound amid declines in prices of flats.
The bidders include CK Property (1113), Sino Land (0083), Far East Consortium (0035), New World (0017), Emperor International, Sun Hung Kai Properties (0016) and a joint venture of Regal International and Paliburg Holdings (0617).
The project covers 14,900 square feet and provides a buildable area of 134,000 sq ft that can produce 216 flats and 22,000 sq ft of retail premises. The winning bidder has to share profit with the authority after revenue exceeds HK$1.92 billion. The authority also takes ownership of the retail area.
Analysts have estimated that the proposed development project will fetch between HK$737 million and HK$1.29 billion, or HK$ 5,500 to HK$9,621 per sq ft.
Far East Consortium considered the site’s location near the future Sha Tin to Central Link and its proximity to a highway bridge before it made a bid, said general manager Chu Po-lam.
Chu said price declines are normal as buyers are now more cautious than before, adding local people’s purchasing power is the least of his concerns.
Midland Surveyors director Alvin Lam Tsz-bun said the number of bids met expectations.
URA receives eight bids for Kowloon project