Strong interest tipped in rare TST commercial site tender
Offers for the commercial plot on Middle Road likely to be conservative due to development limits
The only commercial site in Tsim Sha Tsui released for sale in 16 years is expected to generate an overwhelming response by the time the tender closes on Friday.
The site at 15 Middle Road, next to Sheraton Hong Kong Hotel & Towers, was put up for tender in June. It is the most valuable commercial site in the land sales programme.
Surveyors expect the site, located in the heart of Tsim Sha Tsui, to attract many bidders. However, their offers could be conservative because of the development restrictions.
They estimated the site could be worth between HK$3.4 billion and HK$3.74 billion, or between HK$10,000 and HK$11,000 per square foot.
The site has gained attention because it is the only commercial land parcel in the district to have been released for sale by the government since the sale of a commercial plot in Peking Road in 1998. That plot has been developed into One Peking.
The 28,309 sqft Middle Road site could yield a gross floor area of 339,971 sqft.
"It's located in a prime location and is close to the MTR station," said Vincent Cheung Kiu-cho, a national director of Greater China at Cushman & Wakefield. "It could be developed into an office building or a hotel. And there will be no government sites in Tsim Sha Tsui available for sale in the next few years. But the restrictions have limited its development potential."
