Hunghom Peninsula set to get a green name
Quinton Chan
15 January 2005
South China Morning Post

Hunghom Peninsula, the controversial waterfront property recently saved from demolition, will be given a new name - possibly with an environmental theme.

After a public outcry about the planned demolition of the never-occupied estate - and the negative message it would convey about environmental protection - one of its owners said it was imperative to give the estate a new identity before putting it on sale later this year.

"After all the controversy, it has to be renamed," said Stewart Leung Chi-kin, executive director of New World Development.

Mr Leung had no idea what the seven-block estate would be called, but agreed a name with an environmental theme would be good.

He said permission would be sought soon to renovate the apartments, with the work to take six to eight months. He said the 2,000 flats could be on sale by the end of the year.

The estate was built for the Home Ownership Scheme. But it was sold back to the developer last year after the government suspended the subsidised flats scheme amid the property market slump.

Developers New World and Sun Hung Kai Properties planned to knock down the blocks for redevelopment, but reversed their decision after a public outcry and the threat of an investigation by lawmakers.

Danny Yung Ning-tsun, artistic director of the cultural collective group, Zuni Icosahedron, said a name change would not erase people's memories of the saga.

"If they really want to give it a new name, they had better call it East Kowloon cultural district because they preserved the estate so Sun Hung Kai could gain credit for its West Kowloon cultural district bid," he said.

Hunghom Peninsula
Wednesday, July 6, 2005
Government Press Release

Following is a question by the Hon Ronny Tong and a written reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (July 6):

Question:

It has been reported that the developer which purchased Hunghom Peninsula has recently drawn up a renovation plan for that estate, and is prepared to make substantial alterations to its original fitting-out. On the other hand, according to the sale and purchase agreement signed by the Government and that developer, the latter should obtain the Government's permission before conducting any major renovation and alteration. In this connection, will the Government inform this Council:

(a) of the details of the above renovation plan, and whether it has been approved by the Government; if so, whether the authorities have required the developer to pay extra premium; if so, of the amount involved; and

(b) given that renovation works of buildings will generate substantial construction waste, whether the authorities have assessed the impact of the waste generated by the renovation works of Hunghom Peninsula on the environment, and how they will tackle the problem?

Reply:

Madam President,

My reply to the two-part question is as follows:

(a) The developer of Hunghom Peninsula submitted for the Building Authority's approval the relevant building plans concerning the alteration and addition works to the residential and non-residential portions on May 12, 2005 and on June 13, 2005 respectively. The proposed alteration and addition works include the addition of lifts, combination of flats and revision to internal layout, renovation of external walls, and alterations to carpark and emergency vehicular access. The plans are still under processing.

Up to now, the Lands Department has not received any application for lease modification from the developer. Under the established practice, when such an application is received and approved, premium will be assessed by the Lands Department.

(b) Similar to other construction projects, alteration works of Hunghom Peninsula should comply with all the relevant statutory environmental requirements. The Environmental Protection Department is very concerned about the environmental impact due to the construction waste generated in the alteration works and has requested the developer to submit a comprehensive waste management plan. This is to ensure that measures are undertaken to reduce the generation of construction wastes requiring disposal, to manage construction waste properly and to reuse and recycle useful materials. The developer has committed to submitting the plan after the details of the alteration works are finalised.

Conservation Towers

Hypocrisy Highrises???


;)

Hunghom Peninsula
Wednesday, October 19, 2005
Government Press Release

Following is a question by the Hon Ronny Tong and a reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (October 19):

Question:

According to the sale and purchase agreement signed by the Government and the developer of Hunghom Peninsula, the latter must obtain the former's permission before conducting any major renovation and alteration works for the said estate. It has been reported that the Building Authority has approved the developer's second alteration plans. The approved alteration plans involve merging and converting a number of horizontally or vertically adjacent units into duplex or double duplex flats, as well as enlarging the kitchens, toilets and windows of such flats. In this connection, will the Government inform this Council:

(a) of the details of such alteration plans, and how they differ from those submitted in the first instance;

(b) whether the developer has submitted to the Environmental Protection Department any detailed waste management programme for such alteration works; if it has, of the details of the programme; and

(c) whether the Lands Department has received and approved any application for lease modification from the developer, and whether the developer has been required to pay any regrant premium; if there is such a requirement, of the amount of the premium?

Reply:

Madam President,

My reply to the three-part question is as follows :

In May and June 2005, the developer of Hunghom Peninsula submitted to the Building Authority a number of plans for alteration and addition works to the estate. As some proposals in the plans did not comply with the relevant regulations under the Buildings Ordinance, the Building Authority was unable to approve the plans and had informed the developer in writing in August 2005. Subsequently, the developer submitted revised building plans for the alteration and addition works for the estate on 31 August 2005. The revised building plans were approved on 29 September 2005. The approved alteration and addition works include the addition of lifts, escalators and covered walkways; combination of some flats into larger, duplex or triplex units; revision to internal layout; enlargement of bathrooms, kitchens and windows; renovation of external walls; revision to shop and carpark layout; addition of recreational facilities and alteration to emergency vehicular access.

There are three major areas of differences between the approved alteration and addition works and those proposed in the first application. Firstly, there were changes in carpark and shop layout in the non-residential portion. Secondly, voids were designed in duplex or triplex flats in the first application. In the revised building plans, the voids in the duplex or triplex flats were cancelled. Thirdly, the layout of kitchens and bathrooms in some flats was revised.

The environmental impact due to the construction waste generated in the alteration works is of particular concern to the Environmental Protection Department as well as to the public because all existing installations are brand new and have never been used. The Environmental Protection Department has requested the developer to adopt the best practice, as well as to submit a comprehensive waste management plan. This is to ensure that measures are undertaken to reduce the generation of construction wastes requiring disposal, to manage construction waste properly and to reuse and recycle useful materials. The developer has committed to submitting the plan after the details of the alteration works are finalised. To date, the Environmental Protection Department has not received any waste management plan yet but once it is received, the Department will consider it and advise the developer accordingly.

The Government considers that any alteration which constitutes deviation from the approved Master Layout Plan would necessitate lease modification. If there is any enhancement in value of the development arising from the lease modification, premium would be payable by the developer.

Since March 2005, the Lands Department has informed the developer and his legal representatives of the above-mentioned requirement in writing and orally on a number of occasions. In response to the developer's revised Master Layout Plan submitted to the Lands Department, and the developer's revised building plans submitted to and finally approved by the Building Authority, the Lands Department once again wrote to the developer on 7 October 2005, pointing out that "should the developer wish to alter the Master Layout Plan to accommodate the alteration works proposed in the building plans, a lease modification is required". So far, the Lands Department has not received any application for lease modification from the developer. The Lands Department would conduct premium assessment after the application for lease modification has been received and approved.

Hunghom developers will sell to mass market
30 March 2006
South China Morning Post

Having been mothballed, sold to developers, then saved from demolition after an outcry, harbourfront flats in Hunghom will, after all, be sold to ordinary families.

Two years after their controversial sale at what critics called a bargain price of $2.77 billion, the developers announced yesterday they had abandoned plans to create bigger flats at the seven-tower Home Ownership Scheme estate.

However, Stewart Leung Chi-kin, an executive director of New World Development, said that scrapping the plan for fewer and bigger flats at the Hunghom Peninsula did not mean they would not be luxury flats.

"Some people say because we dumped the [original] plan the development is not a luxury one anymore. However, small or medium-sized flats can still be classified as luxury flats. They don't necessarily have to be big flats," Mr Leung said.

He said the land premium set by the government for converting flats in the estate into bigger ones was too high. The flats would be sold in late June or July.

The estate was built for the government by Sun Hung Kai Properties and a New World Development subsidiary. The two developers had proposed converting the 2,700 flats, which range in size from 300 to 700 sq ft, into 1,800 flats of 700 to 1,200 sq ft by combining units and offering duplexes. They planned to add more lifts, change internal layouts, renovate external walls and enlarge the car park.

A source from Sun Hung Kai Properties said the firm would continue renovating external walls and upgrading décor at a cost of $1,000 per sq ft. He predicted the flats would sell for up to $6,000 per sq ft given the estate's location next to Hunghom KCR station.

Sam Ng Ping-sun, Ricacorp Properties' district director, agreed the flats could sell for up to $6,000 per sq ft given that the secondary market price for flats of similar size and building quality in the area - such as those in the Laguna Verde, Royal Peninsula and Whampoa Garden developments - was between $5,300 and $6,800 per sq ft.

The fate of Hunghom Peninsula has been a source of continuing controversy since February 2004, when the government, having frozen sales of subsidised flats under the Home Ownership Scheme, sold the site. Weeks later, the developers announced they intended to demolish the estate and redevelop the site for luxury flats.

In the face of pressure from the public and the government, they finally backed down at the end of 2004 and offered to renovate the blocks instead.

But the renovation plans had a stormy passage. The Buildings Department initially rejected them last year because they breached fire safety requirements, and negotiations between the developers and government on the amount of land premium payable dragged on after they were approved.

Hunghom Peninsula to test price levels
7 June 2006
South China Morning Post

New World Development and Sun Hung Kai Properties will launch former subsidised housing estate Hunghom Peninsula next month, with a target price higher than the secondary market price of private developments in the district.

"We plan to sell Hunghom Peninsula in the middle of July, after the refurbishment of show flats has finished. The renovation of the project will be finished next year," said Barbara Ho Ng Yin-yue, a New World Development sales and marketing director.

"We have not decided on the asking prices of the project, but I believe our new project will achieve a higher price than [other] projects in the area.

"Even though our project was built as a home ownership scheme, prices will be higher than Whampoa Garden and Royal Peninsula."

Property agents said the average price at Whampoa Garden was $4,400 per sqft and at Royal Peninsula it was $5,000.

They expected Hunghom Peninsula flats to be priced from $4,000 to $6,000 per sqft as 60 per cent of the flats have sea views and the project is next to the Hunghom KCR station.

Any pictures?

http://www.globalphotos.org/hongkong/20070501/IMG_2995.jpg

http://www.globalphotos.org/hongkong/20070501/IMG_2997.jpg

http://www.globalphotos.org/hongkong/20070501/IMG_3004.jpg

http://www.globalphotos.org/hongkong/20070501/IMG_3008.jpg

http://www.globalphotos.org/hongkong/20070501/IMG_3012.jpg

http://www.globalphotos.org/hongkong/20070501/IMG_3039.jpg

http://www.globalphotos.org/hongkong/20070501/IMG_3081.jpg

yay, more of these, oh joy.

Hunghom Peninsula ready to go on sale
8 September 2007
South China Morning Post

Hunghom Peninsula, originally built under the private sector participation scheme, is ready for sale after New World Development and Sun Hung Kai Properties agreed to a land premium amount for changes made to the project.

New World chairman Cheng Yu-tung said yesterday the land premium procedure for the project in Hunghom Bay had been completed.

"The project is ready for sale anytime," Mr Cheng said, without giving a figure for the premium or a timetable for the launch.

A source said the developers had accepted a premium of less than HK$50 million for minor amendments, such as improving the units' layouts and adding a clubhouse.

"Developers have to pay the land premium as the project could fetch higher prices after developers upgraded the property to private housing standards," a surveyor said.

Developers have been negotiating with the Lands Department over the premium amount since 2004, when they first announced plans to upgrade the seven residential buildings initially constructed as low-income housing.

The surveyor said the premium amount was lower than it might have been under the developer's initial plan to divide larger flats into small units.

The developers agreed to renovate the project only after facing public outcry over their plan to knock down the brand-new buildings and replace them with luxury housing.

Located next to the student hostel of the Polytechnic University, Hunghom Peninsula has 2,470 units of between 500 and 700 square feet each. It was completed in 2002 and upgrading work began in 2005.

Davey Bow Chi-tak, a regional sales director at Centaline Properties, estimated that Hunghom Peninsula could fetch between HK$5,000 and HK$7,000 per square foot, in line with the adjacent Royal Peninsula.

wait so.....are those the pre-existing blocks or new ones? What is being re-developed and what is being saved? Do they have the render promos?

wait so.....are those the pre-existing blocks or new ones? What is being re-developed and what is being saved? Do they have the render promos?

All buildings are existing as built for the Home Ownership Scheme. They are being renovated by the developers so the flats can be sold at a more profitable rate instead of the tiny flats for HOS.

Harbour Place developers slam critics as sales start
Hong Kong Standard
Friday, December 21, 2007

Sun Hung Kai Properties (0016) and New World Development (0017) yesterday fired back at critics who accused them of standing to reap at least HK$5 billion profit from selling units at their controversial joint-venture Harbour Place residential project they had purchased from the government at a bargain price.

Previously called Hunghom Peninsula, the seven-tower project on the Hung Hom waterfront comprising 2,470 flats was originally completed by the government in 2002 for low-income groups to purchase under the Home Ownership Scheme.

However, the scheme was scrapped before the units were marketed and the government instead sold the entire project to developers in 2004. Market sources put the developers' total cost at about HK$5.727 billion, or HK$3,688 per square foot.

The first 1,000 units launched last night were priced at an average of HK$7,024 psf - more than 90 percent above the government's selling price.

The cheapest unit offered, on the first floor, was listed at HK$2.82 million for 559 square feet. The most expensive unit, on the 35th floor, was listed at HK$7.21 million for 770 sq ft.

As of 10pm yesterday, about 60 units were sold. If all 2,470 units are eventually sold, market sources calculate that SHKP and New World would gross some HK$10.9 billion - for a tidy profit of HK$5.2 billion. But the two developers deny that the estimates are accurate.

"The calculation [of our profits] should not be done this way," said NWD executive director Stewart Leung Chi-kin. "It is not fair to compare the selling price today with the cost several years ago. The current property market is very different." Sun Hung Kai Real Estate executive Eric Chow Kwok-yin said: "Adding to buying the project from the government, we also needed to bear costs such as land premium and interest costs."

Harbour Place is priced 10 percent higher than similar projects in Hung Hom, where apartments at Laguna Verde and Royal Peninsula were recently fetching HK$6,850 and HK$5,710 psf, respectively.

$7.21m for 770 sq ft in Hung Hom is ridiculous.

$7.21m for 770 sq ft in Hung Hom is ridiculous.

It is. But the flat is probably the one at the top facing the harbour. Compares to those over in West Kowloon above Kowloon Station. That's cheap. IMO, this Hung Hom area is more livable than West Kowloon.

Imagine if this were built to suit a private developer market on the first hand. The price tag would probably be doubled for the same flat and angle.

True - it probably commands a half decent view, and is fairly convenient in terms of transportation and facilities.

The actual development itself isn't actually up to much in terms of clubhouse et al though, which is why I said the price was ridiculous.

Not everybody needs a clubhouse. Personally I wouldn't really care.

Not everybody needs a clubhouse. Personally I wouldn't really care.

I would. The clubhouse is part of what you pay for.

If you take the location or land factor out of the price tag, and it cost the same for each square foot. A 770 SF flat with a clubhouse downstairs is more expensive than the one doesn't.

This development is far more inconvenient than Union Square, although the views may be better. It's a long ride on the tunnel bus into Central, or another long ride by Star Ferry.

It's not THAT bad. About a 10-15 minute walk to the Cross Harbour tunnel bus stops, traffic there is a bitch though. Star Ferry's also another 10-15 minute walk in the other direction I guess, 12 minutes to Central on the ferry if you get it on time - ferry comes every 20-40 minutes, depending on time of day.

It's not THAT bad. About a 10-15 minute walk to the Cross Harbour tunnel bus stops, traffic there is a bitch though. Star Ferry's also another 10-15 minute walk in the other direction I guess, 12 minutes to Central on the ferry if you get it on time - ferry comes every 20-40 minutes, depending on time of day.
It's only a 5-minute MTR ride from Kowloon to Hong Kong.

Billion-dollar day as 230 Harbour Place flats sold
Hong Kong Standard
Monday, January 14, 2008

http://www.globalphotos.org/hongkong/2008/0112/IMG_5752.jpg

About 230 of the 250 units launched in block 5 of Harbour Place in Hung Hom were sold on Saturday grossing about HK$1 billion, according to Eric Chow Kwok-yin, executive director of SHK Real Estate Agency.

In view of this, the average price of the remaining flats in blocks 4, 6 and 7 has risen by 3-5 percent from HK$7,000 per square foot, Chow said. However, he added the price of flats in block 5 will remain at HK$6,800 to HK$6,900.

Following the frenzied sales on Saturday, the first day of the property project's public launch, only 16 units were sold yesterday by 7pm, according to property agencies.

"The higher-quality flats were sold on the first day, leaving buyers with fewer choices on Sunday," said Lam Ko-wai, a senior manager at Midland Realty. Lam said he had heard a fund plans to acquire 50 units in block 5 while the developer is also holding 100 units on hand.

There are also some 200 units of Harbour Place block 4 to block 7 on the secondary market, but as yet not a single transaction, according to George Lam Sui-wah at Ricacorp Properties.

Due to the robust sales, property agents expect the price of block 1 to block 3 to be set 10-15 percent higher than the average price of around HK$7,000 psf.

"Blocks 1 to 3 have a better view of Victoria Harbour and Lei Yuen Mun," said Ricacorp's Lam.

"The developers said earlier that block 1 to block 3 may cost over HK$10,000 psf," added Davy Shek Ka-kei of Centaline Property Agency.

梁展文稱沒想過政府會遺漏考慮紅灣半島因素
【10:47】2009年05月09日

http://news.on.cc/ncnews/hknews/img/ncbrka01_20090509104704_big.jpg

【on.cc 專訊】對於被指未有將紅灣半島事件填寫於向公務員事務局提交的離職後工作申請表上，前房屋及規劃地政局常任秘書長梁展文解釋，他已根據公務員事務局表格的要求，如實地填寫資料，他亦有在表格上填寫新世界中國的母公司是新世界發展，故他相信這已足夠提示政府，將紅灣半島問題列入考慮之列；而他處理紅灣半島時的上司當時仍在政府工作，故他沒想過政府會遺漏紅灣半島這因素。

梁展文又指，曾考慮在表格上填上紅灣半島事件，但因考慮範圍問題，例如嘉亨灣事件是否須同時填上、其他他曾批核的個案應如何處理等，故最後都選擇不填寫紅灣半島事件。

what was the controversy over the redevelopment of the 7 tower Hunghom Penninsula Residential complex?? They built it in 2004 and then just a couple years later Sung Hung Kai wants to tear it down for new construction of flats...

Is it Government Housing still?? or have they sold the flats incorrectly?? I am curious what went wrong and why some developers wanted to demolish right after it was built.

I live literally next door to it...

http://photos-c.ak.fbcdn.net/hphotos-ak-snc1/hs094.snc1/4687_188781850135_900475135_7222698_4182283_n.jpg

Basically, instead of government housing... the entire development for revamped, adding resort type facilities and targets the middle class (flats n the 400 to 700 sq. ft. range going for ~HKD5000/sq. ft.).

I assume because of it's prime waterfront location, post SARS/Asian Financial Crisis property crash... the developer did want to raise the entire development and rebuild from scratch luxury apartment, which would command HKD10,000+/sq. ft. In short, even going through the cost of the original development, pulling the whole lot down, then building posher ones in place... the developer would have made more money.

That is how Hong Kong's rigged property market works... but after mass complaints by citizens, the developers were forced to renovate and not obliterate.

The complex was built by the Government incorporated with the Sun Hung Kei Properties under the Housing Ownership Scheme (HOS) in the late 90s/early 2000s when the former CE Tung Chee Hwa issued the "85,000 flat" policy which asked to construct 85,000 flats in a short period of time. Then the property market went downhill, the Government halted the HOS and Tung unofficially stopped the "85,000 flat" policy. The Hunghom Peninsula was one of those complexes got built under HOS, but didn't make it to the market because of the termination of HOS. These buildings stood there for years before the Government sold them to Sun Hung Kai in a "discounted" rate.

Then, just like StanleyJ said, since this site is located on the prime waterfront, SHK wanted to tear this low quality flats to reconstruct something more luxury that can be sold as a higher price tag for much bigger profit. The public was furious on SHK wanted to tear down new unoccupied buildings for bigger profit. That was completely environmental unfriendly. After some controversies, SHK gave up and agreed to just renovate the buildings instead.

There was a joke saying the original flat was constructed in a way that any pregnant woman couldn't turn around in the kitchen because the kitchen was ridiculously small.
I think the big part of renovation from SHK is knocking down walls and combining flat for more usable floor footage per flat.

I've merged the 2 threads. We had a thread on this controversy in the Projects part of the HK section.

I live literally next door to it...


You live in the Royal Peninsula :D

I live literally next door to it...

http://photos-c.ak.fbcdn.net/hphotos-ak-snc1/hs094.snc1/4687_188781850135_900475135_7222698_4182283_n.jpg

Basically, instead of government housing... the entire development for revamped, adding resort type facilities and targets the middle class (flats n the 400 to 700 sq. ft. range going for ~HKD5000/sq. ft.).

I assume because of it's prime waterfront location, post SARS/Asian Financial Crisis property crash... the developer did want to raise the entire development and rebuild from scratch luxury apartment, which would command HKD10,000+/sq. ft. In short, even going through the cost of the original development, pulling the whole lot down, then building posher ones in place... the developer would have made more money.

That is how Hong Kong's rigged property market works... but after mass complaints by citizens, the developers were forced to renovate and not obliterate.

Ah thanks!

That very much explains why they look like government housing anyway.

Thanks that cleared up some earlier confusion I had... btw - so the HOS plan - was it cheap housing? Even though Tung unofficially stopped Housing Ownership Scheme... Why were they not occupied?

Or was HOS a payment/loan plan that failed?

HOS built housing are government subsidized housing, usually in the form on land value, which allow citizen would meet the medium-low income families to purchase their own property. Typically, the housing standard was not all that bad as Hung Hom Peninsular.

The Tung's "85,000 flat" policy sacred to have too many housing property on the market, along with other factors, significantly hurt the property market. He wished to stop building government hosing and availability to save the property market. That included allowing the built HOS flat to be sold in the market as well.

You live in the Royal Peninsula :D

*rimshot* ;)

Anyway... was quite glad they "reclad" the exterior walls. This is how it looked as Govt. housing:

http://static.panoramio.com/photos/original/5638222.jpg

:puke:

And since this is now a merged thread... Star Ferry access is rather useless as it's 20 minutes between ferries and service only runs till 7pm to/from Wan Chai and 8pm to/from Central. Service is further crippled during weekends.

The cross harbour buses are okay, but again using the old tunnel... what should be a 8 minute journey (say to Causeway Bay) can take 40+ minutes. :(

That said... if the Kwun Tong line ever gets extended with a Whampoa Station, the MTR station would be closer than the equivalent at Union Square. Even better if the Kwun Tong line makes a 4th/5th harbour crossing (depends if it's before or after Shatin-Central link) and interchange at Fortress Hill.

^^ It doesn't matter which will be the 4th cross-harbour MTR, Whampao has been ruled out as a station already. So... sorry~~

^^ It doesn't matter which will be the 4th cross-harbour MTR, Whampao has been ruled out as a station already. So... sorry~~

I read about that (one of your posts no doubt ;))... though thought it was a maybe rather than definite? Still a few years before final design... the last revised scheme shows a change of alignment for the Shatin-Central Ma On Shan extension and that still shows Ho Man Tin and Whampoa in the Kwun Tong extension?

http://www.mtr.com.hk/eng/projects/future_scl.html

Anyway... getting back on topic, this development will be filled and in the next 10-30 years, old Whampoa/Hung Hom block will be redeveloped... the population will want/need a mass transit extension (as opposed to some people mover thing to Hung Hom station).

This is why I wanted to know... since I am releasing some extra content for Simcity4 - I made a representation of Hunghom Pennisula for all those HK fans out there

http://img29.imageshack.us/img29/8239/hunghom2.jpg

not yet done - gonna add extra props for the parks and tennis courts... but you can see I used the old facade scheme on the buildings.

This is why I wanted to know... since I am releasing some extra content for Simcity4 - I made a representation of Hunghom Pennisula for all those HK fans out there

http://img29.imageshack.us/img29/8239/hunghom2.jpg

not yet done - gonna add extra props for the parks and tennis courts... but you can see I used the old facade scheme on the buildings.

:eek::eek::eek:

Suen opts to stay mum on controversial land project

Beatrice Siu

Wednesday, July 15, 2009

Former housing chief Michael Suen Ming-yeung yesterday used the confidentiality of Executive Council meetings to avoid giving details of how the price of the controversial 2004 Hung Hom Peninsula project was set.

But Suen, questioned at the Legislative Council panel hearing on former housing chief Leung Chin-man's post-Civil Service employment by a New World Development unit, said the Lands Department and not Leung participated in the discussion about the land premium.

New World Development purchased the lot at a bargain price of HK$864 million, though at least double that could have been expected.

The subcommittee deputy chairman, Lee Wing-tat, said the Executive Council had proposed a HK$1.15 billon price, and so he wondered why Suen, then secretary for housing, planning and lands, still opted for a price 30 percent lower than the target.

Suen refused to answer because, he said, he is forbidden by law to reveal details of Exco meetings.

Suen did admit that the Hung Hom project was "much more difficult" than he had thought as he did not estimate the large discrepancy between the government and the developer's evaluation.

He added there was no precedent in changing the usage of housing estates and that settling on prices for 2,000 units was a different process from reaching a price for a single unit, causing the differences in the evaluation.

Having considered eight other options, the final estimate faced the least legal challenges, he said.

Lawmaker Ronny Tong Ka- wah asked why there was no suspicion over New World China Land executive director Stewart Leung Chi-kin's attempt to discuss with Leung Chin-man the failed land premium talks between the government and the developer in March 2003.

Suen explained that he had to deal with many businesses at that time and did not pay attention to the incident.

Leung's request to join New World China Land was approved last July, but a public outcry led to his resignation a few days later.

Leung was questioned on whether the job was linked to the sale of Hung Hom Peninsula Home Ownership Scheme flats.

The flats were sold cheaply to a consortium including a New World subsidiary when Leung was the director of housing.

Source: http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=84852&sid=24568579&con_type=1&d_str=20090715&fc=4

Oooh the plot thickens. Through in some John Woo style gangsters and we got a movie.