Sun Hung Kai plans to increase supply of flats by 56 per cent at Yuen Long, Cheung Sha Wan residential projects

By Sandy Li sandy.li@scmp.com / https://www.scmp.com/business/article/3031637/sun-hung-kai-plans-increase-supply-flats-56-cent-yuen-long-cheung-sha-wan?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | October 8, 2019 5:24 AM SGT
Sun Hung Kai Properties (SHKP) has filed an application with the Hong Kong government to increase the capacity of two residential projects by a combined 56 per cent, as the government struggles to increase land supply.
In its application to the Town Planning Board on Friday, SHKP said it plans to increase the number of flats in Yuen Long fourfold to 1,995 units, from 455 large flats, and reduce the average unit size to 484 square feet, from 2,000 sq ft previously.
Hong Kong's largest developer by market cap also submitted a separate application to squeeze 16 per cent more flats at its joint venture development in Cheung Sha Wan, to 3,647 units from the originally planned 3,140. Here too the average unit size would be reduced to 520 sq ft from 605 sq ft.
The total cost of the two projects, offering a total of 5,602 units, could amount to more than HK$18 billion, according to surveyors.
A general view of Yuen Long in Hong Kong's New Territories. Photo: Martin Chan alt=A general view of Yuen Long in Hong Kong's New Territories. Photo: Martin Chan
The developer's application comes a week after the government announced plans to take back private farmland covering 68 hectares (7.3 million square feet) in the northern New Territories to construct a new town.
The government has said that it would release only two plots yielding 980 units " down 27 per cent from the third quarter " for sale from October to December.
"This is definitely an alternative for developers to increase supply by raising the number of flats to be built on their existing land," said Vincent Cheung, managing director of Vincorn Consulting and Appraisal.
But traffic and environmental impact assessment would be a major consideration for the Town Planning Board before it gives its approval, he said.
"The infrastructure too should be able to support an increase...