Hong Kong Wen Wei Po News (By Yan Lunle)
MTR property management director Tang Chi-fai disclosed the tendering schedule for the LOHAS Park Phase 11 in a recent interview. It is estimated the tendering will be launched in short term. This project has three buildings in buildable floor area of about 950,000 sq ft that supplying about 1,850 units at the most. The market valuation is about HKD 4.28 billion to HKD 7.6 billion, with each floor area land price from HKD 4,500 to HKD 8,000. Three projects together with other two will be launched this year, in a total of 4,500 units at the most.
Looking at data, the Government in early announced that the buildable units of this land site is about 1,650 units, while the latest MTR data shows there will be 200 units more. ‘ It is lean to build more smaller size properties suitable to the first housing people in the market, so the Company made some adjustment.’ Tang Chi-fai explained. However, as the unit number increased, some surveyors were worried that the supply of this area would be excessive.
Properties under construction and not sold are about 20,000 units.
MTR will also launch two projects for tendering this year besides LOHAS Park phase 11, which are LOHAS Park phase 12 (1,850 units) and Wong Chuk Hang Station phase 4 (800 units), with the total of three projects are 4,500 units. When was asked if the MTR cooperated with the Government to reduce the supply of private land, he stressed that it is not cooperation with Government on adjusting supply but due to the consideration of market ability to undertake many expensive land sites in the market this year, and it is inappropriate that too many supply in short term of same district.
He also pointed out that although the Government adjusted the proportion of public and private housing to 7:3, but the overall supply of 450,000 units in 10 years do not changed. At present, the residential properties under construction and unsold by MTR and cooperative development partners are about 20,000 units, most of which will be put on sale and the funds will be recovered in the next six years. The West Rail has 10,000 units under construction and have not yet been sold. Coupled with the government invites land tenders, it is believed there are still a certain of private land sites in the market.
No intention of disassembled selling the mall.
As for the current land supply from the MTR, Tang Chi-fai admitted only left LOHAS Park phase 11-13 and Wong Chuk Hang Station phase 4-6, while they will inspect their railway lines facilities to search new projects in the future, including Siu ho wan depot in Lantau Island, which will be the largest residential project of the company in future supplying 108 buildings of about 14,000 units in total floor area of about 11.2 million sq ft. Although the current Outline Zoning Plan has been approved, but it is believed will take several years to be launched to the market due to the complex technology assessment and project involved in the relocation of the depot.
LOHAS Park mall will be finished next year.
Source pointed, Siu ho wan depot’s 14,000 units will be private residences, and the total property number will increase since there will be part of public housing in the future leading the average unit area may decrease. Asked if they would follow Link Real Estate Investment Trust on selling some part of shopping malls,Tang Chi-fai expressed they have no such intention currently, because large shopping malls are one of the mainstream businesses of the company,and there will be three large-scale shopping malls in the future, which will bring recurring income to the group to subsidize the increasing cost of railway maintenance.
‘LOHAS Park mall among the future three malls will be the first to open, which will be finished in the second half of next year, and it’s total floor area is nearly 479,000 sq ft, with some large scale shops are pre-leased; Tai Wai station on-top project is expected to be completed in 2023 with a total floor area of about 652,000 sq ft; The Wong Chuk Hang Station shopping center is also estimated to be completed in 2023 with a total floor area of about 506,000 sq ft.’ he continued.
There will be many phases of residences not occupied when LOHAS Park mall will be finished next year, so it is believed the flow of people is not enough to support the operation of the shopping malls, however, the company believes that the residents of the district are looking forward to the mall for a long time, so they choose to open the whole mall as soon as possible to make up for the gap in the community facilities in the district, Tang Chi-fai expressed. He revealed that in the future, there will be facilities such as the largest ice rink in Hong Kong, and there will also be shops for people's livelihood to meet the needs of residents. Depending on the population growth of the district and the flow of people in the shopping malls, the MTR will properly adjust the number of train station at LOHAS Park.