10/5/2018-10

City Council’s acquisition of Sai Ying Pun project price of 23,600 yuan

The URA announced a record-breaking price of RMB 23,568 per sq. ft. of available space to issue an offer to a property owner of the Saiqingli/Chenxiang Street project in Sai Ying Pun, a 400-sq. The owners will receive 9.43 million yuan in compensation.

Industry: high purchase price reflects geographical value

At the end of last year, the URA acquired a total of 15,916 yuan per sq ft of real estate and purchased 3 reconstruction projects from Jiulong District, becoming the highest purchase price ever recorded. At that time, Wei Zhicheng, the chief executive officer, had already notified the West Gate project that the purchase price would be broken again. The price of the Sai Ying Pun project announced yesterday was a new record, exceeding 23% of the Kowloon City project at 23,568 yuan per square foot.

According to Chen Haichao, head of research and development department of Lijiage Real Estate, property prices in Hong Kong have risen for 24 consecutive months. With property prices continuing to innovate, reflecting high prices in the market, the URA’s acquisition units will also be able to adjust the purchase price in response to market conditions. The target of the acquisition; he believes that if property prices continue to remain high, the trend of future purchase prices will not rule out higher and higher. He pointed out that the purchase price is quite high, but the project is located in the urban area and the purchase price reflects the geographical value.

The qualified owner-occupiers of the project may also choose the floor replacement flats or the new flats for the new developments built on the original site of the redevelopment project. The project involves a total of 101 titles, and the owners will have 60 days to consider the URA’s offer. When the property acquisition process is completed, the URA will provide ex-gratia allowances and resettlement arrangements for eligible residential tenants in the relevant properties.

The Sung Kyung-ri/Cinxiang Street project was launched in July 2017 and the gazette on March 23, 2018 was authorized by the Secretary for Development. The project site has a total area of ​​approximately 1,120 square meters and covers 14 street numbers. Depending on the details of the development of the project, the URA initially proposed to provide about 8,300 square meters of residential floor area and about 400 square meters of commercial/retail floor area within the project. The project is expected to be completed in 2026/2027.