13 developers bid for station project
A total of 13 developers have submitted bids for a property project above Nam Cheong Station.
Looking back...MTR kicks off tender process for Nam Cheong station project
22 April 2010 - South China Morning PostThe MTR Corp yesterday kicked off the tender process for the HK$33 billion Nam Cheong station commercial and residential project, in line with the government's policy of releasing more sites to cool the overheated property market.
A spokesman for the railway operator said the company would invite developers to submit expressions of interest today.
Developers will have until next Thursday to show their interest.
The project on top of the station in Sham Shui Po is close to two public housing estates - Fu Cheong Estate and Nam Cheong Estate. The 6.2-hectare site could house nine 7- to 9-storey low-rise and nine 42- to 46-storey high-rise residential buildings with a 287,732 square foot shopping centre. It could provide 3,300 units with a total residential floor area of 2.96 million sqft and is scheduled for completion in 2016.
The MTR is negotiating the land premium with the Lands Department. The firm estimated the project's total investment cost, including the land premium levy and construction cost, at about HK$33 billion.
As the project will be developed in two phases, the developer could pay the premium in two stages.
According to Centaline Property Agency data, property prices at the seven-year-old Metro Harbour View (MHV) range between HK$4,964 and HK$5,137 per square foot.
( Today: MHV : $7,074.75 psf - chart
26 May 2010 - The StandardOnly three developers have submitted tenders
for the HK$33 billion residential- commercial development atop Nam Cheong station near Cheung Sha Wan.
Cheung Kong Holdings (0001), Henderson Land (0012) and Sun Hung Kai Properties (0016) were the only bidders although 12 developers expressed interest earlier.
``Given the project's large scale, high investment, numerous market choices, we find having three tenders very satisfactory and within our expectations,'' said MTR Corp (0066) property director Thomas Ho Hang-kwong.
...The premium for the first phase of 1,900 flats alone will amount to a record HK$13 billion, or an accommodation value of about HK$6,500 per square foot given a gross floor area of over 1.9 million sq ft.
Ho expects the winning developer, which will be announced as soon as possible, to begin the second phase two years later after construction work for the high-speed rail finishes.
(3)Hong Kong Cancels Tender For Nam Cheong Station Property Project
28 May 2010
HONG KONG (Dow Jones)--The tender for the property project located above Nam Cheong station in Hong Kong's Sham Shui Po district has been canceled, Nam Cheong Property Development Ltd., the government-backed company overseeing project, said Friday, without providing a reason for the cancellation.
Analysts said the cancellation suggests developers might have had reservations about making a massive investment in the Nam Cheong project when the government is scheduled to auction a prime site in Ho Man Tin in Kowloon in June and another high-end site on The Peak in July.
The HK$33 billion project drew tenders from blue-chip developers Sun Hung Kai Properties Ltd. (0016.HK), Cheung Kong (Holdings) Ltd. (0001.HK) and Henderson Land Development Ltd. (0012.HK).
'This will be interpreted as a negative signal (for the property market),' said David Ng, the head of regional property research at Royal Bank of Scotland. 'But the withdrawal may also suggest developers weren't satisfied with the share of the profits they would have got from the project.'
(4)China Real Time: Has the Tide Turned on Hong Kong Property?
2 June 2010 - Wall Street Journal
Many Hong Kongers are holding their breaths for a dive in property prices after government moves to cool the market and after two sites were auctioned off at disappointing prices. But will a drop really happen?
A mild correction, yes. But the likelihood for any major near-term price decline is very small.
Some argue that the tide has changed after two recent auctions fetched lower-than-expected prices. The real-estate market was dealt a further blow after a mega high-end property project at Hong Kong's Nam Cheong subway station was withdrawn by the government due to unattractive bids.
But how indicative are these transactions? Not very, according to surveyors and market watchers.
Sites sold at recent auctions were situated in noncore areas near the airport of the Lantau Island and Fanling district of Hong Kong's New Territories. Both drew only mild interests from small- and mid-sized developers because their locations are not well suited to luxury homes. Developments that fail to generate lucrative premiums aren't coveted by big builders these days.
The massive residential/commercial project at Nam Cheong station has the ideal location for high-end homes, but it carries a hefty land premium of 13 billion Hong Kong dollars ($1.67 billion), or nearly HK$6,600 ($847) a square foot,