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1. KCRC's tendering plan is only a proposal

2. KCRC unveils plans to release 13,600 flats

3. Five in bidding for cultural hub project

1. KCRC's tendering plan is only a proposal
Hong Kong Government, 21 June 2004

In response to press enquiries concerning the Kowloon Canton Railway Corporation (KCRC)'s plan to invite tender for its property developments along the West Rail and the Ma On Shan (MOS) rail link next year, the Housing, Planning and Lands Bureau issues the following statement today (June 21):

"The Government notes that the KCRC made public its plan to invite tender for its property development programme along the West Rail and MOS rail link yesterday. The proposed plan is subject to agreement by the Government.

The proposal as announced by KCRC yesterday was to put up tender for one of its five property developments along the two rail links next year with the first batch of flats to be completed in 2008 the earliest.

It has always been the Government's objective to ensure that property developments by the railway corporations are carried out in an orderly manner without causing adverse impact on the property market."

2. KCRC unveils plans to release 13,600 flats
Eli Lau, The Standard 21 June 2004

The Kowloon-Canton Railway Corporation (KCRC) is to release for sale about 13,600 flats in 2008, it revealed yesterday.

However, KCRC property division director Daniel Lam predicted that the flood of flats, from five projects along its railways, would not upset the property market. Tendering for construction begins next year.

``We are trying our best to avoid any negative influence [on the market] and we have co-ordinated with the government, MTR Corp, Urban Renewal Authority and other sources of land supply,'' he said.

The government could ask the KCRC to postpone tenders if it appeared there was a danger of an oversupply, Lam added.

Such a move, however, would affect passenger numbers and, in turn, West Rail profits.

KCRC top management reaffirmed the tender schedule yesterday, one day after Secretary for Housing, Planning and Lands Michael Suen raised the supply forecast for 2007. Suen said at the weekend that a further 4,400 new flats were likely to go on the market in 2007, taking the total to 11,400. This was 60 per cent more than a prediction made two months ago.

According to KCRC's schedule, more than 2,000 units at Wu Kai Sha Station on the Ma On Shan line will go up for construction tender in the first quarter of next year.

That will be followed by a second-quarter tender to construct 9,000 units at projects at West Rail's Nam Cheong, Tsuen Wan West and Yuen Long stations.

A project to build between 2,500 and 2,900 flats at Tai Wai Station on Ma On Shan line will be released for tender in 2006.

The first batch of the units from the projects are expected to be ready for sale by 2008 at the earliest.

Director of Lands Patrick Lau said KCRC's plans would not negatively affect the market.

``I'm sure the government will co-ordinate with the URA to facilitate a steady and healthy property market,'' Lau said.

But HSBC Securities analyst Derek Cheung warned that abundant supply in 2008 could hurt the market. ``Unless demand rises dramatically, it could have a negative effect,'' Cheung said.

Meanwhile, a Mass Transit Railway Corporation spokesman said it may open construction tenders for its Dream City residential project at Tseung Kwan O station as early as the end of this year. If that happens the first batch of some 2,000 units would be ready for sale by 2008-09.

Passenger numbers on West Rail last month were around 110,000-120,000 a day, almost 50 per cent below original forecasts.

The poor passenger numbers prompted the KCRC to cut its projected 2004 pretax profit estimate to just HK$300 million from HK$900 million.

Separately, Sun Hung Kai Properties said 180 Park Island Phase 3 units were sold via internal sale over the weekend, lifting total sales at the Ma Wan residential development to 1,100 flats. The project, known as Oceanfront, has raked in more than HK$3 billion for the developer so far.

3. Five in bidding for cultural hub project
Staff reporter, The Standard 21 June 2004

Five companies or consortiums have submitted bids for the HK$24 billion cultural hub project in West Kowloon.

Henderson Land Development, Swire Properties and a company called ``Lam Sze-tat'' submitted sole tenders for the mega development.

Cheung Kong (Holdings) and Sun Hung Kai Properties bid through a 50/50 joint-venture.

Sunny Development, established by Wharf (Holdings), Sino Land, K Wah International Holdings and Chinese Estate Holdings also bid.

The 40-hectare waterfront site at the southern tip of the West Kowloon Reclamation will be developed into an integrated arts, cultural and entertainment district.

The proposals will be assessed by a committee chaired by the Permanent Secretary for Housing, Planning and Lands and all proposals will be put on public display early next year.

The project's chosen design, by award-winning architect Norman Foster, allocates 39 per cent of the development site to arts and cultural use, 17 per cent for commerce such as offices, and 16 per cent for hotels and residential accommodation. The remaining 28 per cent has been designated for public space and utilities.

The government favours awarding the project to a single developer or large consortium although small developers have been lobbying the government to change the parameters so they might win a piece of the action.

Construction is expected to begin in April 2007 at the earliest, and the schedule calls for the core arts and cultural facilities to come into operation in phases from 2011 onwards.