Hong Kong consortium to borrow farmland to compete in China
In recent years, more and more Chinese investment in Hong Kong, in order to take a share in Hong Kong real estate, often at high prices to grab, local developers only by virtue of its large number of agricultural land advantage, through land premiums to develop land to compete with Chinese The
8 residential land invested 6
According to newspaper statistics, in 2012 the government approved 22 sites, only two Chinese investment, accounting for 9%; and last year, China won six sites, accounting for 23% of the 23 sites.
As of September this year, the Government has approved eight residential sites and six are funded by a Chinese-funded consortium. The local consortium is only interested in two smaller New Territories land.
In addition to the increasing number of Chinese companies joining the local land market, their bids tend to be high. The most classic to the number of HNA in November last year, to 13.5 million yuan per square foot to win the Kai Tak residential land, relative to two years ago with the region more than 1 times the land price.
Statistics of China’s domestic investment this year to absorb the residential floor of 2.83 million square feet, accounting for the Government approved the residential floor of 292 million square feet of 96%, involving the amount of 40.44 billion yuan investment, accounting for the overall residential income of 42.14 billion yuan about 96% The
In the face of China’s blind spot, local developers also seem helpless, the new land (00016) Chairman and Managing Director Guo Binglian has said: “and other epilepsy in the first." At the same time and another way out.
The biggest advantage of Hong Kong developers is the large number of agricultural land. In the case of new land, there are 28 million square feet of agricultural land, assuming a plot of three times the plot, which can be built about 84 million square feet, calculated at 500 square feet per unit, providing 16.8 million, equivalent to 14 Taikoo Shing.
It is expected that the local developers will continue to subsidize land premiums in order to increase the residential land to the Chinese embassy.