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1. Swire presses on with 54-floor project

1. Swire presses on with 54-floor project
Raymond Wang and Eli Lau, The Standard 4 February 2004

Swire Properties is pressing ahead with plans to build a 54-storey residential tower in Mid-Levels despite objections from the Town Planning Board and neighbouring residents.

Swire Properties director and general manager Gordon Ongley said the company has been seeking to increase the gross floor area of the HK$500 million project by 30 per cent to 225,000 square feet, from about 170,000 sq ft.

An application to increase the plot ratio - which governs how many flats can be built on a site - to as much as 10 times, from eight times, was recently rejected by the Town Planning Board.

``We are reviewing the grounds for that rejection and obviously we'll take steps to ensure the full potential of the site is realised,'' Ongley said.

According to the Town Planning Board, Swire's plan failed because it did not provide sufficient leisure area and the high density development would have hampered traffic.

The company's plans to build a tower on the site at Seymour Road 2A, - close to its 47-storey Robinson Place development - is also facing opposition from nearby residents who say their view of the harbour will be blocked.

However, Ongley says Swire is determined to go ahead the project, which will provide about 200 flats.

On other projects, Swire Properties will start work in the next few months on a 400-room hotel at Tung Chung on Lantau.

The project, to cost HK$450 million, is scheduled to be completed in 2005, he said.

Ongley said Swire is interested in one or two small to medium-sized urban land plots on the government's land application list, which was released last month.

He said Swire's office portfolio was showing an occupancy rate of around 80 per cent, and he expected the major landlord in east Hong Kong island to be very competitive in the office market, saying the bottom of the market has been reached.

``We don't see an up-turn in office rentals,'' Ongley said.

``For that you need to see business expanding, tenants coming into the market. There is a significant change compared to a month ago. The balance is now evening out but it's unrealistic to expect office rents to rise.''

Commenting on the residential property market, Ongley said home buyer's confidence has been picking up amid clearer government land policies and he expects a 5-10 per cent upside for home prices.

Meanwhile, developers of two high-priced residential projects reported sales totalling HK$800 million over the past week.

Property investor E2-Capital (Holdings) said all 30 semi-attached houses at its Greenery Gardens in Yuen Long had sold in the past week.

Director Kant Tsang said the flats, priced at HK$2,800 to HK$3,000 per square foot, had generated about HK$200 million.

K Wah Properties sold more than 20 luxury apartments at The Caldecott in Kowloon Tong, at an average price of HK$7,000 psf, reaping HK$600 million.

K Wah Real Estate senior property manager Wilson Chan estimated the sales of the 20 flats, and another 24 to be sold, would generate HK$850 million.

Real Estate Developers Association president Stanley Ho said the property market was doing well despite fears the bird flu scare may dampen demand.

``I don't understand why people are making a big deal out of the bird flu, out of the whole Asia there has only been a few dead,'' Ho said.

``It is not a serious issue and should not be considered one.''