The runway area is waiting to be pushed.
In recent years, the Mainland has tightened its capital. The investment strategy of the Chinese consortium has changed. It tends to use the land in the Kai Tak Runway area. There are still nine coastal sea areas to be pushed, which is a trend for Chinese and Hong Kong developers to invest in the ground. .
As the largest development project in the urban area, the Kai Tak New Development Area has attracted competition from the China-Hong Kong consortium. The land price in the region has risen rapidly in the past few years. From 2013 to 2017, the government has launched 13 residential plots, of which 8 were invested by Chinese capital and the remaining 5 were held by Hong Kong. Although HNA will resell three sites to Wheelock and Henderson Land (00012), the land price in the district has risen from 4,900 yuan per square foot to 15,000 to 17,800 yuan.
Chinese capital focuses on urban depression
As the mainland’s regulatory funds become more stringent and the trade war continues, the Chinese investment in Hong Kong seems to have shown signs of slowing down. In the past year, about 90% of residential land has been won by local developers. However, many Chinese-funded background consortiums are still interested in absorbing Hong Kong’s land and turning their land-losing strategies into “selecting fat and consuming" and looking for quality urban areas to focus on attack.
The Kai Tak Runway area has 11 seascapes and is a battleground for the military. Four of them are launched this season to form a “T-shaped" with high plasticity. The first piece of land was won by the four consortiums of Wheelock last week.
The No. 2 area of 4B District, which will be closed at the beginning of next month, will be a link. In order to achieve better landscape and layout for joint development, it is not excluded that the consortium will bid at a more aggressive price, which is expected to play a positive role in the market.