MTR Corporation (0066) said it has received nine tenders for its Pak Shing Kok Ventilation Building property development in Tseung Kwan O, with market valuations ranging from HK$1.5 billion to HK$2.3 billion, or about HK$5,000 to HK$8,000 per square foot.
Sino Land (0083), Wheelock Properties, K. Wah International (0173), and K&K Property are said to be among the ones bidding for the project.
The residential development will provide a maximum gross floor area of 27,006 square meters.
It is expected the land premium of the site to be above HK$1.1 billion, equivalent to about HK$3,789 per sq ft, which could become a new record in Tseung Kwan O.
James Cheung, executive director at Centaline Surveyors said the overall investment amount is not large and medium-sized developers can afford the premium, adding that the pandemic and the economic downturn might not have much impact on the developers' bid.
Meanwhile, real estate consultancies said rents in the luxury home and office market softened in the first quarter.
The luxury residential leasing market has been very quiet as expats faced yet more disruption to their personal and professional lives due to strict measures imposed by the government to combat Covid, Savills said in a report.
The overall office vacancy rate climbed slightly to 10.9 percent in the quarter, a new record high over the last decade, with overall rentals down 1.3 percent quarter-on-quarter, said Colliers Hong Kong.
Source: The Standard