URA invites tenders for To Kwa Wan project, land value up to HK$4.6 billion
The Urban Renewal Authority is seeking tenders for a To Kwa Wan Road/Wing Kwong Street project, valued at HK$3.45 billion to HK$4.6 billion. Developers using Modular Integrated Construction could gain extra floor area. Bids close on 11 November, with analysts expecting 5 to 8 submissions.
The Urban Renewal Authority's (URA) To Kwa Wan Road/Wing Kwong Street development project is now open for tender, with the site covering about 58,900 square feet and a total buildable floor area of approximately 530,000 square feet. According to reports, the tender documents suggest developers adopt Modular Integrated Construction (MIC), and those using the method could receive an additional floor area exemption of about 40,000 square feet.
The project is valued at between HK$3.45 billion and HK$4.6 billion, translating to a land price of about HK$6,500 to HK$8,670 per square foot of floor area. The tender closes at noon on 11 November, and the project is expected to provide about 1,050 flats.
Fong Yiu-ming, head of valuation and consultancy at Knight Frank's Greater China operations, estimated the project's value at between HK$4 billion and HK$4.6 billion. He noted that recent new-home sales in Kai Tak have been encouraging, and with the surrounding transport and commercial facilities well developed, developers generally show strong interest in land sites in the Kowloon central area. He expects the project to attract 5 to 8 tender submissions.
Fong said the property market has benefited from interest rate cuts over the past year, and the trajectory of rates remains a key factor influencing developers' bids. Although the recent tender for a government site in Ho Man Tin drew a favourable response and achieved a satisfactory land price, he cautioned that uncertainty over future rate increases could make developers less aggressive in their pricing.
Sources indicate that the tender conditions require profit-sharing once sales revenue exceeds HK$9.1 billion, with a 20 per cent share for the first HK$800 million and 30 per cent thereafter. Fong said such clauses are common in tender terms and are unlikely to dampen developers' willingness to bid.