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

MTR Corp, a major player in Hong Kong's transport and property sectors, has faced a setback as it couldn't attract any property developers to collaborate on a big project in Tung Chung, close to the international airport. After the bidding ended, MTR announced that they didn't get any suitable offers. Initially, there was interest from 32 potential bidders, but none followed through with a bid. Experts believe the price MTR set was too high, and with many other available properties in the area, the deal wasn't tempting enough.

This incident is a sign of the current uncertainty in Hong Kong's real estate market. Interest rates have been rising, making it more expensive to borrow money, which has hurt the housing market. The Hong Kong government also couldn't sell a piece of land in Tung Chung because the offers were too low. This was the fifth time they couldn't sell it.

The development MTR planned would have included homes and shops near a future train station, which is part of the Tung Chung Line Extension due to be finished in 2029. Although MTR properties are usually well-liked for their convenience, the high costs of construction and borrowing are making it difficult for these projects to be profitable. Developers are being cautious and waiting for a better time to invest. MTR's recent decision to end a train operation contract in Stockholm, which will cost them money in 2024, adds to their challenges.