MTR Tai Wai housing project back on market

The MTR Corp will reopen bidding for the Tai Wai Station residential project, two years after its tender was pulled.

The project was withdrawn in 2012 because of a lack of interest and the bids were too low. Only Henderson Land Development, Sun Hung Kai Properties and Cheung Kong (Holdings) submitted bids then.

A spokesman for the railway operator said the project would be released for tender soon. Developers could submit their interest by Monday.

"The investment cost of the project would remain high," said Alnwick Chan Chi-hing, the head of valuation and professional services at consultant Knight Frank. "But developers would still be interested because of the good location. They would probably form joint ventures to bid for the project."

The estimated investment cost of the project was HK$29 billion in 2012.

"The new land premium levy charged by the government may be lower than the HK$12.7 billion, or about HK$4,410 per square foot, for the site two years ago," said Alvin Lam Tsz-pun, a director at Midland Surveyors. "But the developers still need to afford the construction cost and profit-sharing with the MTR. It is still a heavy investment."

Construction costs have risen sharply over the past two years. It costs at least HK$4,500 per square foot to build mass residential homes.