ebulletin

December 22, 2024
MTRC Tung Chung residential site awarded to Nan Fung Group

Nan Fung Group emerged victorious against three rival groups in securing the development site near Tung Chung East Station. The tender drew interest from major developers such as CK Asset Holdings, Sun Hung Kai Properties, and a Sino Land-Great Eagle consortium. The site, near Hong Kong’s international airport, is part of the Tung Chung line extension slated for completion in 2029.
The project will have a maximum gross floor area of approximately 322,900 square feet. MTR's strategy to halve the size of the proposed development to 600 flats, set for phased construction through 2029, reflects adaptive measures in response to market conditions.

Adjustments in Land Premium and Market Developments

The MTR Corporation has received five bids for a large residential site in Tung Chung, estimated at HK$5.5 billion, after rejecting five bids last year. Notable tenderers include Nan Fung Group, Sino Land, and Henderson Land Development.

Despite the high valuations of HK$5.5 billion or HK$5,900 per sq ft, the figures remain below last year's maximum valuation of HK$7.52 billion. The project, set atop the Tung Chung Traction Substation and railway facilities, aims to provide 1,400 to 1,800 residential units across a gross floor area of 87,288 square meters.

To attract bidders after previous rejections, MTRC slashed the land premium by over 25% to HK$3.5 billion and removed the minimum profit-sharing percentage of 15%. The adjusted land premium, now HK$3.55 billion or HK$3,776 per sq ft, aligns with the values seen in the recent Tseung Kwan O property development tender.

Tung Chung New Town (HKSARG)