MTR receives no ‘conforming tender’ for Tung Chung site in latest setback for Hong Kong’s property market outlook

MTR Corp has failed to entice Hong Kong property developers to jointly develop a large-scale mixed-use property project in Tung Chung near the city’s international airport, a week after the government failed to sell another site in the vicinity.

“We have not received any conforming tender for the development,” the company said in a statement after the bidding closed at 2pm local time on Thursday. The proposed development on the site known as Tung Chung Town Lot No 53 had earlier attracted 32 expressions of interest from potential bidders when invitation closed on October 6.

MTR sought proposals for Package One of the Tung Chung East Station Development on Lantau Island, which comprises residential and retail components and is scheduled to be built in phases through 2029.

“The lack of proposals for the project suggests the base price set by MTR Corp is unattractive” to prospective investors, said Alex Leung, senior director at CHFT Advisory and Appraisal. An abundant supply of land bank in the area in the near future may have also diminished its appeal or appreciation potential, he added.


MTR Corp to go big in Greater Bay Area but Hong Kong remains its ‘fillet mignon’, says chairman

MTR Corp to go big in Greater Bay Area but Hong Kong remains its ‘fillet mignon’, says chairman

The setback reflects the uncertainty and medium-term visibility of Hong Kong’s housing market outlook. A succession of interest-rate increases by the Federal Reserve and the Hong Kong Monetary Authority since March 2022 has pushed financing costs to the highest level since 2007, denting home prices in the city along the

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