Sino Land and CSI Properties have won the tender to develop a residential site in Yau Tong at the southeastern end of Kowloon for an estimated HK$3.8 billion ($484 million).
The tender for the Hong Kong site was awarded to Top Oasis Limited, a consortium formed by Sino Land and CSI Properties, MTR Corporation announced Wednesday on its website. The duo outbid five other developers including Sun Hung Kai Properties, Henderson Land, Wheelock Properties, Emperor International and Far East Consortium International.
A residential development will be built atop MTR Corporation’s Yau Tong Ventilation Building, a facility serving the railway tunnel of MTR’s Tseung Kwan O Line. The winning consortium is estimated to have paid HK$3.8 billion for the site, including a HK$1.5 billion land premium. The developers are required to share one-fourth of their sales revenue with MTR, local media reports say.
Kowloon Site Could Yield 500 Homes
“The proximity to the [Yau Tong] MTR station would give an advantage to the plot,” said Thomas Lam, Senior Director at Knight Frank in an exchange with Mingtiandi. “However, the project is also close to a number of public housing estates. The costs for construction will also be relatively high.” Lam estimates the development costs would be around HK$4.5 to 5 billion, translating to a price of approximately HK$20,000 per square foot for the units upon completion.
The 43,400 square foot (4,032 square metre) plot will provide approximately 325,300 square feet of floor area for 500 residential units. The Sino Land-CSI Properties duo is responsible for demolishing an existing government pumping station and rebuilding a pedestrian road on the parcel.
Sino Land plans to develop a high-quality residential project incorporating green architectural elements and smart home design, said Daryl Ng Win-kong, deputy chairman of Sino Land, according to Apple Daily. Ng added that the project benefits from well-established community facilities nearby, and the fact that the Yau Tong station is one of the three MTR stations on the Kowloon peninsula that is directly accessible to Hong Kong Island.
Sino Land has previously participated in MTR’s property developments at Olympic Station, Fo Tan Station and Wu Kai Sha Station.
Sino Land Continues Site Spree
The latest site acquisition comes after Sino Land snatched up seven residential sites in 2017 alone. In December, the Hong Kong-listed developer partnered with Chuang’s Consortium International to grab a site in Mong Kok from the Urban Renewal Authority for an estimated HK$1.8-2 billion ($230-256 million).
The Mong Kok plot purchase came just a week after Sino won a tender to redevelop the former headquarters of electricity company CLP Group in the same district into a luxury residential project. The developer was estimated to have paid approximately HK$7.5 billion ($959 million) for the parcel.
In the same month, Sino Land teamed with Kerry Properties to win a tender for a site in the Wong Chuk Hang area valued at HK$8.9 to 10 billion.