Sun Hung Kai, Hongkong Land apply to build 11,000 flats on New Territories plot originally slated for 300 villas

By Pearl Liu and Sandy Li pearl.liu@scmp.com / https://www.scmp.com/property/hong-kong-china/article/3019391/sun-hung-kai-hongkong-land-apply-build-11000-flats-new?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | July 23, 2019 2:45 PM SGT
Two of Hong Kong's biggest property developers plan to squeeze more than 11,000 homes onto a parcel of land they had originally earmarked for 300 villas, as government schemes to boost land supply face delays.
"Low-rise, low-density housing developments will not make good use of scarce land," said Sun Hung Kai in an announcement regarding the application. "The proposed development can ease the shortage of housing supply in the city, which should be solved immediately."
The two developers plan to build 11,292 flats with an average size of 484 square feet.
New World Development's new project, Atrium House, with similar sized homes in Yuen Long sold at HK$16,000 (US$ 2,047.5) per square foot in June.
At that price, Sun Hung Kai and Hongkong Land would pocket more than HK$80 billion.
When the two builders bought the site in 2014 they secured permission to build 300 villas on it.
Under the revised plan, in phase one they will offer five blocks comprising 1,990 units to house 5,293 people within six years of the proposal being approved. By completion, 25 residential towers of up to 39 storeys each will provide homes to 30,036 people in 11,292 flats, they estimate.
Market observers said the timing is good because as the government scales back schemes which would have bolstered land supply. The authorities recently postponed a funding request for the contentious Lantau Tomorrow Vision project in light of the recent protests that have shaken the city.
Lantau tomorrow is a plan to build 1,700 hectares of artificial islands " an area equivalent to one-third of Kowloon " in the waters between Lantau Island and Hong Kong Island.
Last month the government hinted that another plan, to partner with private developers to build on the city's large tracts of farmland may also be delayed, sparking fears of a short-term lack of land supply.
"It is quite possible they will get the green light because increasing the plot ratio is the fastest way " probably the only choice in the short term...