The residential site in West Kowloon up for sale today in the first government land auction this financial year could bring in as much as HK$4.88 billion.

The sale was triggered by Wheelock Properties - 74 per cent owned by conglomerate Wheelock and Co - in March with a minimum bid of HK$2.6 billion.

Surveyors expected Wheelock Properties would face intense competition to buy the site. Henderson Land Development, Sun Hung Kai Properties and Cheung Kong (Holdings) also planned to make bids.

The government could generate HK$4.88 billion or HK$7,000 per square foot from the sale, according to Ricacorp Properties which last month put a figure of HK$4.23 billion, HK$6,501 per square foot, on the site.

"Wheelock Properties triggered another site in West Kowloon next month with HK$4,583 per square foot, which is 14 per cent higher than the site up for sale [today]. We decided to adjust our valuation on the site," Ricacorp executive director Willy Liu Wai-keung said.

"[SHKP] will bid for the site and the other site in West Kowloon up for sale next month as the two sites are the only land supply in the next few years," said Victor Lui Ting, an executive director of Sun Hung Kai Real Estate Agency. The company would bid on its own, he said.

Henderson Land also planned to bid on its own, said Augustine Wong Ho-ming, general manager of its property development department.

Surveyor Albert So Chun-hin said major developers were interested in the site as the supply of large-scale residential sites in urban areas was limited. He expected the site could fetch HK$4.2 billion, HK$6,500 per square foot.

The 86,758 square foot site, at the junction of Hoi Wang Road , Yan Cheung Road and Yau Cheung Road , could provide a gross floor area of 650,680 square feet.

The Lands Department this afternoon (May 8) held the first land auction of the 2007-2008 financial year.  A Government lot in West Kowloon Reclamation Area was sold for $4 billion.

The lot, Kowloon Inland Lot No. 11073, at the junction of Hoi Wang Road, Yan Cheung Road and Yau Cheung Road, was sold to Union King (Hong Kong) Limited for $4 billion. The opening bid was $2.605 billion.   Kowloon Inland Lot No. 11073 has a site area of about 8,060 square metres and is designated for non-industrial (excluding godown, hotel and petrol filling station) purposes.  A minimum gross floor area of 36,270 square metres must be completed.

The auction was conducted at the Concert Hall of the Hong Kong Cultural Centre, Tsim Sha Tsui by Assistant Director of Lands, Mr Jim Merritt, assisted by Chief Estate Surveyor Mr Tony Moyung.