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1. Bid to raise plot ratio at Hung Hom project

2. Convenience sets Fo Tan housing apart from rest

1. Bid to raise plot ratio at Hung Hom project
Raymond Wang, The Standard 7 April 2004

The co-developers of Hung Hom Peninsula are looking to increase its plot ratio before tearing down the existing blocks to make way for luxury flats.

New World Development (NWD) and Sun Hung Kai Properties (SHKP) are expected to spend HK$2.2 billion in land premiums if the plot ratio - which governs how many flats can be built on a site - is raised to eight times from the existing level of five times, surveyors said.

The two developers said last month that they were inclined to demolish the seven towers of 2,470 previously subsidised flats to make way for a luxury project.

They are in discussions with experts before making a final decision by the end of the year on whether or not to proceed with the redevelopment plan, SHKP vice-chairman and managing director Thomas Kwok said last week.

Amid the positive outlook for the luxury residential property market, the developers are believed to have been doing preparation work, surveyors said. ``For instance, getting opinions from experts on how to convince the Planning Department if they propose to boost the plot ratio,'' Centaline Surveyors managing director Victor Lai said.

They are expected to apply for an application to increase the plot ratio and negotiate with the Lands Department on premiums to raise the existing gross floor area of 1.55 million to 2.48 million sqft.

However, the department will consult the Planning Department before starting land premium talks.

Lai said the developers may take about one year to win approval and settle the land premium, which is estimated at about HK$2.2 billion or HK$2,400 per square foot.

Total investment is estimated at HK$5,000 psf, up 35 per cent from the previous estimate of HK$3,700 psf.

Developers may still reap a windfall profit from the waterfront project if the luxury residential market continues its upside trend, property agents have said.

However there will be a potential risk if the market shows signs of slowing after three years when the project is due for completion.

The Hung Hom Peninsula project was built under the government's ill-fated Private Sector Participation Scheme (PSPS). The developers agreed to pay a land premium earlier this year to turn the subsidised Hung Hom Peninsula project into a private development.

Sales of PSPS projects were put on hold after the government suspended the sale of subsidised flats, including Home Ownership Scheme flats, in 2002 to stabilise falling home prices.

2. Convenience sets Fo Tan housing apart from rest
ERNEST KONG, SCMP 7 April 2003

A low-density residential area is the ideal living environment for many people, but the inaccessibility of some of these areas often discourages potential residents.

However, Fo Tan, near Sha Tin, is one of the few low-density residential areas where flat seekers can find medium priced low-density homes within walking distance of the railway.

But secondary market transactions are scarce. Most buildings are more than 10 years old and are mostly occupied by end-users.

According to property agents, fewer than 10 properties in the district are for sale.

Private developer Yu Tai Hing's new project - The Morning Glory - is the only new development in the residential district in five years.

The three, four-storey residential blocks in Lok Ha Square, consisting of 24 units from 1,357 square feet to 1,763 sq ft, are less than 15 minutes' walk from Fo Tan station. Selling prices range from $4,700 per square foot to $6,100 per square foot.

In a bid to tap demand for larger units in the district, about 12 units larger than 1,500 sq ft have four rooms while others have three rooms. Standard units have 3.35-metre-high ceilings while top floors have 3.96-metre ceilings.

The project's biggest attraction are its top floor units, which come with rooftop gardens that can be accessed through a staircase off the living rooms - a popular feature in many high-rise duplex penthouses. Units on the top floors have rooftops of 760 sq ft to 917 sq ft.

For flat seekers looking for spacious gardens, some first-floor units have podiums larger than 800 sq ft.

However, unlike most special units in mass residential developments that come with furnished rooftops or podiums, buyers will need to furnish the spaces themselves.

A 1,517 sq ft unit with a 760 sq ft rooftop recently sold for $9.12 million while 1,611 sq ft units with 859 sq ft podiums went for $9.22 million.

According to Daniel Li Koon-chiu, a district manager of Centaline Property Agency, a 1,650 sq ft unit in an adjacent low-rise development - Rosary Villas - built about 20 years ago is going for $7.5 million.

"Although Rosary Villas has an exceptionally large swimming pool, it is lower than The Morning Glory, which has better views," Mr Li said.

Third-floor units and above at The Morning Glory have a partial view of the Sha Tin racecourse; a full view of the course is obscured by the Royal Ascot high-rise residential tower.

According to the developer, units in block one of The Morning Glory, which have inferior views, are selling at a 10 per cent discount to other units.

However, the basic gym and small swimming pool will probably disappoint flat seekers.

Potential buyers should pay attention to other costs involved in owning a property there. The monthly management fee ranges from $2.30 to $2.50 per square foot, or more than $3,000 a month. Parking spaces sell for $300,000.