HONG KONG | Austin Station Development | U/C

hkskyline · #1 Posted **Oct 16, 2011, 4:19 AM**

MTR opens up two TST sites
25 January 2010
The Standard

MTR Corporation (0066) is inviting developers for expressions of interest in two residential sites atop its Austin station - the first such move by the railway operator since the onset of the financial crisis in 2008.

Site C covers 135,629 square feet and Site D 159,310 sq ft.

The total gross floor area amounts to 1.28 million sq ft, representing a plot ratio of eight. The sites can deliver around 1,200 homes.

Owing to the development scale, MTRC is considering paying part of the land premiums when it invites tenders to encourage smaller developers to participate in the large-scale project, a source told Sing Tao Daily, sister publication of The Standard.

Midland Realty district sales manager Michael Tse Ka-shing and surveyor Pang Siu-kei expect stiff competition for the sites.

``As far as I understand, the accommodation value will be about HK$10,000 per square foot,'' Tse said. ``I think big developers are very likely to get the projects, as they involve over HK$10 billion.''

Tse said the MTRC's premium subsidy may help small builders, but big developers will be competitive in bidding given their experience in projects atop Kowloon Station. He expects the completed homes to fetch over HK$20,000 psf while the final tender prices are set to boost the secondary market. Pang said the sites are among the bigger developments in Kowloon and will benefit from a number of rail lines. He expects the region to become Kowloon's transport hub.

Pang added that there are already many luxury properties atop nearby Kowloon Station while the proposed terminal of the high-speed rail between Hong Kong and Guangzhou will accommodate commercial buildings.

Tse noted there is currently no property development in the pipeline in Tsim Sha Tsui.

Applications will close on Friday, an MTR spokeswoman said.

hkskyline · #2 Posted **Oct 16, 2011, 4:20 AM**

Developers flock to bid for MTR residential project
Luxury developments above Austin Station a big drawcard
25 February 2010
South China Morning Post

MTR Corp has received an enthusiastic response from developers for the planned HK$18 billion luxury residential project above Austin Station in West Kowloon, even though it will require a huge capital commitment.

The railway operator yesterday received five bids from six developers in a tender for the project.

New World Development teamed with Wheelock Properties to submit a bid while Sun Hung Kai Properties, Henderson Land Development and Kerry Properties joined the bidding separately. Cheung Kong (Holdings) also submitted a bid, but did not disclose whether it had a partner.

The luxury residential project will be built on the top of the new Austin Station in Canton Road, next to a golf driving range that will be redeveloped into a commercial project above the Guangzhou-Shenzhen-Hong Kong Express Rail Link at West Kowloon Station. The site covers 2.74 hectares and could be developed into a commercial-residential project with a total gross floor area of more than 1.28 million square feet. The project could provide 1,200 units. Total investment cost of the project is about HK$18 billion.

Sino Land, the most aggressive bidder in the land market over the past two years, did not submit a bid yesterday. However, when asked whether it had submitted a bid with a joint-venture partner, a company spokeswoman said: "We are not the one that submitted the bid."

One analyst said developers will face a large investment cost for the project. For example, such a project would boost Sino Land's gearing ratio to about 50 per cent from the current 30 per cent. Sino Land already owns two residential developments in West Kowloon.

Nelson Chan Cheong-kit, a director at Lanbase Surveyors, said the response was in line with his expectations.

"The bidding for the site will be aggressive as it is in a prime location. Property prices of the project may reach HK$20,000 to HK$30,000 per square foot when it launches. The prices may hit a record high for apartments in Hong Kong," he said.

According to transaction data from Centaline Property Agency, prices in Kowloon Station, near Austin Station, have ranged between HK$11,000 and HK$20,600 per square foot in recent months.

The Lands Department has imposed a land premium levy of HK$11.7 billion, or HK$9,140 per square foot, on the project. That means the bidders may offer at least HK$2,800 per square foot on top of the levy to MTRC for acquiring the project.

MTRC property director Thomas Ho Hang-kwong said response to the tender was satisfactory.

The railway operator will increase land supply this year. A residential project at Nam Cheong Station in Sham Shui Po will be put up for tender next month, he said. It comprises 18 residential buildings, which could provide about 3,000 units.