The inclusion of a commercial site atop West Kowloon High-Speed Rail Terminus in the Hong Kong Government 2019/2020 Land Sale Program has left property experts wondering whether it may be out of reach for a single developer.

Comprising 5.88 hectares, the lot is capable of providing about 294 000 square metres of gross floor area, making it one of the largest commercial sites put up for sale by the government in recent years.

It was one of 22 sites included in the announcement of the 2019/2020 Land Sale Programme on February 28.

Secretary for Development Michael Wong Wai-lun said the government intended to sell the huge West Kowloon site as a whole, instead of carving it up for separate sales, as some market watchers had been speculating.

“In terms of design and management, we believe it is beneficial to sell the site as a whole,” Wong said.

The South China Morning Post reports that property consultants expect bids of between HK$95 billion and HK$110.8 billion for the site.

Colliers International Hong Kong Head of Valuation & Advisory Services Hannah Jeong told WILLIAMS MEDIA the location of the land meant there would still be interest, albeit of a more selective nature.

"It is significantly large, so we will see more consortium bidders," she said.

"It is expected that the main Hong Kong developers and Mainland developers will show their interest and the number of bids will range from 5-7.

"Due to its core location, a handful of bidders will show up despite its large lump sum."

The 2019/2020 land programme comprises 8.8 million square feet of land in seven commercially-zoned sites, making it the largest commercial release from the government in more than two decades.

JLL Hong Kong Head of Valuation Rita Wong said it was "a good start" to fixing the acute supply shortage in the city’s Grade A office market.

“If the city is to benefit from the growth of the Greater Bay Area, the Hong Kong government must ensure that there is adequate land supply to meet demand both over the short and longer-term,” Ma says.

“A failure to do so will further erode the city’s competitiveness as a regional business hub.”

Sources: South China Morning Post, JLL Investor, Colliers International

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