Leung Pui Hung, Senior Director of Valuation at Colliers International, noted that To Kwa Wan, Kowloon City, and Kai Tak are the main supply areas for new building constructions.

He also mentioned that six projects by the government and MTR Corporation Limited (MTRCL) have been unsuccessful in tendering this year, citing a cautious bidding environment among developers. However, he believes that the likelihood of this project facing a similar fate is low due to its moderate scale and relatively uncomplicated development terms.

This reconstruction project is located at 51-77 Ma Tau Wai Road, 12-34 Shing Tak Street, and 2-4A Ma Tau Kok Road, considered one of the pilot projects for the URA's collaboration with two civil servant building cooperatives.

The project's tender documents were completed at the end of August, attracting a total of 32 expressions of interest. The project opened for tender on the 17th of last month and closed today.

According to market sources, the tender terms of the project clearly stipulate that if the selling proceeds of the winning consortium reach HKD 8.25 billion, a profit-sharing mechanism requires a 40% share to be allocated to the URA. This mechanism is triggered when the upper limit of residential floor area, approximately 414,900 square feet, achieves an average unit price of around HKD 1,988.

In addition, developers are required to submit a "fixed price" proposal to bid for the project, with the highest bidder winning the project.

The URA will retain three units in the project and conduct a lottery for them from the 4th to the 7th floors. Moreover, the project imposes size restrictions, specifying that residential units must not be less than 300 square feet, and at least half of the units must not exceed 480 square feet.

The land area of this reconstruction project is approximately 46,100 square feet, with an expected total built-up area of around 414,900 square feet. Situated in front of Ma Tau Wai Estate, the project is adjacent to the MTR Kai Tak/Sun King Terrace Station and To Kwa Wan Station, just an 8-minute walk from the MTR Sun King Terrace Station.

The reconstruction project on Shing Tak Street in Kowloon City is a highly anticipated building reconstruction pilot project, attracting attention from many developers due to its moderate scale and straightforward development terms.

Through clear tender terms and a profit-sharing mechanism, the URA has provided incentives for the winning consortium while ensuring the government's fair return. The successful progress of this project will further promote the rational utilization of land resources and the development of urban construction.