15 July 2014 - Local newspapers reported that the mega Kwun Tong redevelopment project, Kung Tong Town Centre Project (Development Areas 2 & 3), received a fewer-than-expected four tenders. These included offers from Sun Hung Kai (0016), Wheelock (0020) and Henderson Land Development, and one unknown party. Surveyors are worried that the project could face a tender failure as the expected total investment may exceed HK$16 billion.
The Urban Renewal Authority had asked 10 interested developers to submit tenders for the second and third phase of the redevelopment project, but attracted only 4 bids. Even leading developer Cheung Kong, who already avoided participation in the bidding for two residential projects in Tin Shui Wai earlier this year, chose not to submit an offer for the Kung Tong redevelopment project. Surveyors estimate that the huge investment costs involved as well as market uncertainty caused by current property cooling measures are both concerns that have resulted in developers becoming much more conservative in their bids.
According to previously released information, the total site area of the Kwun Tong Town Centre development area (Development Areas 2 & 3) is about 234,200 sq.ft. while the buildable area is over 1,850,000 sq. ft., including approximately 1.5 million sq. ft. of residential space. It is expected that a total of approximately 1,700 residential units will be provided.
