Developers keen as MTR's Tai Wai residential project up for tender

MTR Corp's Tai Wai Station residential project yesterday received an overwhelming response, with 23 developers expressing interest in the property, compared to the 15 expressions of interest when it was released for the first time two years ago.

"More developers are interested in the project because of the improving market sentiment in recent months," said Vincent Cheung Kiu-cho, national director of Greater China at Cushman & Wakefield.

"Many new residential projects recorded strong sales. It gave developers confidence in land acquisitions," he said.

"The location of the site is very good. And the new land premium levy would be less than that in 2012. But the construction cost of residential [developments] has risen to more than HK$4,000 per square foot. The response of the tender depends on the terms of the tender."

When MTR Corp released the Tai Wai MTR Station residential project for tender two years ago, the winning bidder was required to pay a land premium to the Lands Department of HK$12.7 billion, or HK$4,410 per square foot. They also were required to offer a profit-sharing scheme to the MTR.

This time around, the project has attracted interest from large developers such as Sun Hung Kai Properties, New World Development, Nan Fung Development, Kerry Properties and Wheelock Properties, as well as mainland developer China Vanke.