New King to stimulate the property market to Hong Kong should be accelerated push
Cheung Sha Wan Linhai land yesterday open tender price of 17.29 billion yuan to break the beginning of Ap Lei Chau land more than 168 billion yuan to the King Records. I believe the new king will stimulate the property market warming, the Hong Kong government should make preparations to deal with, first increase the push, and spicy recruitment, to ease the rising trend.
Sino-Hong Kong joint venture to increase investment by the risk reduction
Xintiandi is funded by a syndicate of Sinotrust (00083), Shimao Property (00813), Wheelock (00020), Ka Wah International (00173) and Javanese Holdings (00251), with an average land price per sq ft of 17,501 yuan, although it failed to break the record of 22,110 yuan in Ap Lei Chau. However, if we take into account the construction cost and the developer’s profit, the actual sales price will be more than $ 30,000 in the future, much higher than the current price in the same district.
The bidding consortium has two major characteristics. One is the cooperation between large and small property developers. The other is the joint venture between China and Hong Kong. This reflects that developers are optimistic about the prospects of the property market. However, large-scale and large silver yards will require developers to work together before they can stand out among the best competitors. This will not only increase the bid chance but also share the risk.
China-Hong Kong joint venture consortium bid Yongjin, reflecting confidence in the market outlook. The birth of the new king, I believe short-term heating up for the property market just add more firewood.
Over the past few months, prospective buyers have been watching the new policy of Chief Executive Sir Jeong Cheng-e. However, the policy address has focused on public housing and has little to say about private property. The long-awaited purchasing power has been released, resulting in a rise in the volume and price of first and second-hand flats. Recently released Central Plains Property Index rose nearly 2% a single week, has reflected the property market is heating up, coupled with the excitement of the new king, the Hong Kong government actually need to be prepared, once the property prices rise more than plus spicy threshold, such as two consecutive A month-on-month increase of more than 2% or a double stamp duty case reflecting investment demand surged, there should be a reserve for new demand management measures.
In the meantime, the Hong Kong Government should increase the supply of land as soon as possible. In the first quarter of this year, 17,000 flats have been sold out in the first quarter of this year, reflecting more market demand than originally expected. Owing to the developers’ premium prices, the supply of privately owned flats in the first three quarters of the year exceeded the target of 18,000 flats. The government still has spare capacity on the ground. At this moment, the government should actually push the land again to respond to the hot demand.
Coordinate with the MTR to rebuild the temporary shelving project as soon as possible
In addition, MTRCL (00066) also temporarily shelved four projects due to its compliance with the supply of private-owned land. As a major shareholder of the MTRC, the Hong Kong Government can coordinate with the MTRCL to re-launch the project as soon as possible to convince the public of the government’s ability to short-term Increase the supply of land within.
Only letting the public feel the future supply of units is not short, it will not rush to chase the city, stop the hot property market cycle faster circulation, so hopefully, to avoid the property market fire rose too fast too much.