The Government has approved a revised land-disposal arrangement for West Rail property development sites, which aims to expedite the release of the West Rail sites to bolster the housing supply in the market.
     Under the revised arrangement, bidders are required to propose an upfront lump-sum cash payment for West Rail sites in an open and competitive process. The tenderer submitting a lump sum offer that is the highest, or is higher than the tender reserve price as assessed by the Lands Department, and is also able to meet all other tender terms including a profit share for the West Rail Property Development subsidiary fixed at 5% and technical requirements, will be awarded the right to develop the project with the West Rail Property Development subsidiary.
     The West Rail sites will be granted at a nominal premium of $1,000 each to Kowloon-Canton Railway Corporation, but the lump-sum payment, after deduction of development costs, will be treated as profits to West Rail Property Development and after tax distributed to the Government as dividends.
     The "one-price" approach is expected to be recognised as an efficient approach by tenderers in preparing their bids. This in turn should speed up the disposal of the remaining 11 West Rail sites for housing development.
     The Financial Secretary asked West Rail Property Development to redesign six West Rail property projects which have approved master layout plans or building plans that comply with quality and sustainable built environment requirements.
     The opportunity has also been taken to increase the supply of small and medium-sized flats at these sites. The Government welcomes West Rail Property Development's implementation of these requirements by revising the schemes of the West Rail sites which have not been tendered. The production of small and medium-sized flats will be specified in the lease conditions. Separately, a "no frills" requirement will be specified in the tender conditions.
     West Rail Property Development plans to tender the Nam Cheong site in the third quarter of this year, and the two sites in Tsuen Wan Area 5 within 2011-12, and, subject to Town Planning Board approval, the Long Ping (North) site in early 2012.