Valuer Insights
Business Insights | Snapshot of Tuen Mun Package One Property Development
October 31, 2025
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Eddie Tsui
Senior Director, Valuation & Advisory Services, Hong Kong
The Tuen Mun South Extension Line extends the existing train service of Tuen Ma line to the tentatively named A16 station in Tuen Mun Area 16 and ultimately a new terminus, Tuen Mun South, near Tuen Mun Ferry Pier. The extension will extend southwards from the current terminus, Tuen Mun station, with an expected completion date of 2030.
MTR Corporation has issued an invitation for Expression of Interest (EOI) on 22 Sep 2025 for the Tuen Mun A16 Station Package One Property Development on Tuen Mun Town Lot No. 576, an opportunity for developers and/or consortia to submit proposals for the first phase of its property project at a site adjacent to the upcoming MTR A16 Station at Tuen Mun South Extension. A total of 31 EOIs have been received. MTR Corporation has launched the tender with closing date on 5 Nov 2025.
Situated on a site designated as Tuen Mun Town Lot No. 576, adjacent to the Tuen Mun River and the upcoming Area 16 Station of the Tuen Mun South Extension Line, the whole development project upon the station will feature 18 residential towers (ranging from 10 storeys to 45 storeys, max 174mPD) with about 366,678 sq.m. (i.e. approx. 3.95 mil sq.ft.), together with comprehensive shopping and community facilities, a public transport interchange (PTI), with about 31,100 sq.m. (i.e. approx. 335,000 sq.ft.) of non-domestic GFA in phases.
The whole development project Tuen Mun A16 Station Property Development will be developed in phases, with the first phase (also known as Package One) located in the northeastern section. It will include direct covered pedestrian access to Area 16 Station and a shopping mall, offering up to 55,847 sq.m. of residential GFA.
Using a residual land valuation approach and referencing the key development and financial assumptions outlined in the table on the left, the model assumes a maximum residential GFA of approximately 55,847 sq.m., yielding around 1,000 units and 251 private car parking spaces. Under these assumptions, the estimated land value is approximately HK$1.8-2.3 billion. This assessment excludes any consideration of profit-sharing arrangements with MTR Corporation, which, if included, would affect the land value.
For reference, the recent land tender for TMTL 569 in Tuen Mun (August 2025) was awarded to Sino Land at HK$1,089 million, translating to HK$3,860 psf of AV. Other bids in the tender ranged from HK$480.5 million to HK$698.0 million (HK$1,703–2,474 psf AV). That said, the winning bid of this site has a premium of 56% over the second bid.
While profit-sharing with MTR would reduce the land value of Package One development, I believe its accommodation value would still exceed that of TMTL 569, given the subject site’s superior location, connectivity, and view. Moreover, Package One offers a significantly larger scale—approximately double the site area and maximum GFA compared to TMTL 569. That said, the AV of the winning bid for TMTL 569 appears at the high side when compared to the other participating bids and the expected offer for this Package One.
CBRE’s Valuation & Advisory Services team provides valuations, manages land exchange and lease modification processes, conducts feasibility studies for development projects, and assists with government applications on land matters.
Contact us to explore tailored solutions that address your business goals.
MTR Corporation has issued an invitation for Expression of Interest (EOI) on 22 Sep 2025 for the Tuen Mun A16 Station Package One Property Development on Tuen Mun Town Lot No. 576, an opportunity for developers and/or consortia to submit proposals for the first phase of its property project at a site adjacent to the upcoming MTR A16 Station at Tuen Mun South Extension. A total of 31 EOIs have been received. MTR Corporation has launched the tender with closing date on 5 Nov 2025.
Source: MTRC
Situated on a site designated as Tuen Mun Town Lot No. 576, adjacent to the Tuen Mun River and the upcoming Area 16 Station of the Tuen Mun South Extension Line, the whole development project upon the station will feature 18 residential towers (ranging from 10 storeys to 45 storeys, max 174mPD) with about 366,678 sq.m. (i.e. approx. 3.95 mil sq.ft.), together with comprehensive shopping and community facilities, a public transport interchange (PTI), with about 31,100 sq.m. (i.e. approx. 335,000 sq.ft.) of non-domestic GFA in phases.
The whole development project Tuen Mun A16 Station Property Development will be developed in phases, with the first phase (also known as Package One) located in the northeastern section. It will include direct covered pedestrian access to Area 16 Station and a shopping mall, offering up to 55,847 sq.m. of residential GFA.
Key Highlights of the Approved Tuen Mun Outline Zoning Plan No. S/TM/35
- Max building height is 174mPD under the OU (Commercial / Residential Development with PTI), which is relatively higher than nearby existing and future developments
- The site is abutting Tuen Mun River and most development nearby are for GIC purposes which are relatively lower in development density and building height
- A majority of the flats built on A16 station is expected to enjoy open views
Development Value Analysis
Based on market sale rates observed in comparable developments in Tuen Mun—such as The Esplanade (opposite side of Tuen Mun River) and Century Gateway (located above Tuen Mun Station)—the average unit sale price for the completed Package One development is projected to reach approximately HK$15,000 psf (saleable area), subject to other factors such as overall market sentiment and dynamics, and economic conditions.Using a residual land valuation approach and referencing the key development and financial assumptions outlined in the table on the left, the model assumes a maximum residential GFA of approximately 55,847 sq.m., yielding around 1,000 units and 251 private car parking spaces. Under these assumptions, the estimated land value is approximately HK$1.8-2.3 billion. This assessment excludes any consideration of profit-sharing arrangements with MTR Corporation, which, if included, would affect the land value.
For reference, the recent land tender for TMTL 569 in Tuen Mun (August 2025) was awarded to Sino Land at HK$1,089 million, translating to HK$3,860 psf of AV. Other bids in the tender ranged from HK$480.5 million to HK$698.0 million (HK$1,703–2,474 psf AV). That said, the winning bid of this site has a premium of 56% over the second bid.
While profit-sharing with MTR would reduce the land value of Package One development, I believe its accommodation value would still exceed that of TMTL 569, given the subject site’s superior location, connectivity, and view. Moreover, Package One offers a significantly larger scale—approximately double the site area and maximum GFA compared to TMTL 569. That said, the AV of the winning bid for TMTL 569 appears at the high side when compared to the other participating bids and the expected offer for this Package One.
CBRE’s Valuation & Advisory Services team provides valuations, manages land exchange and lease modification processes, conducts feasibility studies for development projects, and assists with government applications on land matters.
Contact us to explore tailored solutions that address your business goals.