The Kai Tak Runway Residence is the first section of the front row of seascapes with a maximum valuation of 13 billion
The land launched by the fourth (the 4C District No. 3) of the old airport runway area will be intercepted by the Lands Department tomorrow. The land will be used for residential development. It is not only the first place in the district this year, but also the first front row of the Victoria Harbour Seascape for the Kai Tak runway area. The market’s total valuation for the site ranges from 10.4 billion to 13 billion yuan. The industry is expected to create a new high in the runway area.
The land for the tender is the No. 6551 of the New Kowloon Inland Lot. The site area is about 117,900 square feet. The estimated plot ratio is 5.5 times and the maximum building area is about 648,600 square feet. The plot is designated for non-industrial development. It is worth noting that this site is a sea view of Wangwei Port. The landscape is superior to the top three approved runway sites. The site is adjacent to the future hotel belt and is also the closest to the cruise terminal.
Since November last year, a total of three plots of land have been approved in the old airport runway area of Kai Tak, all of which are “back row” residential sites in Area 4B. The first launch of Zone 4B, Area 3, received 8 tenders, a consortium of New World (017), Henderson Land (012), Wheelock (020) and Imperial Group, which was jointly invested in the first half of November last year. The winning bid price was 8.33 billion yuan. The second piece of land was awarded from No. 4, Zone 4B. The Gaoyin Group defeated the other six consortiums in the same month and won the bid price of about 8.9 billion yuan. As for the previous one, No. 2 in Area 4B received a total of 6 bids, which were successfully invested by Chinese-funded China Overseas (688) for 8.03 billion yuan.
High-quality urban seascape rare building mansion
Based on industry and market forecasts, the gross estimate of Lot No. 3 in Area 4C is between 10.4 billion and 13 billion yuan, equivalent to a floor price of 16,000 to 20,000 yuan per floor. Lin Haowen, senior director and director of valuation and consulting at Knight Frank, believes that with the advantage of Kai Tak CBD2 (the second commercial core area) and the enjoyment of seascape, the developers who have won the bid are more competitive or aggressive. The US trade war and the government’s vacant tax policy will also affect the developer’s bid. In addition, he expects that the project will develop to the Victorian luxury residential level in the future, and the price will reach RMB 29,000 after completion.
Lin Zibin, director of the American Association of Surveyors, said that compared with other runway residential sites that were launched earlier, the land is the most advantageous in terms of location and landscape. He pointed out that although developers have recently pushed at low prices, such high-quality urban seascapes are extremely rare, and it is expected that the price will hit a new high in the runway area.
For the number of tenders, Lin Haowen estimates that the land will receive about 7 to 8 tenders. Due to the large scale of project development, the total investment cost is estimated to be about 16 billion to 18 billion yuan, so it will be dominated by large-scale developers with strong strength. He also pointed out that the entry of the consortium will become a new trend, because it can share risks and facilitate future sales.
Zhang Jingda, a surveyor of the Central Plains, also said that the land was a rare land and it is expected that about 10 tenders will be received, which is higher than the previous three runways. As the size of the site is larger than the previous three runways, it can attract developers to join the consortium. However, it is difficult to say whether the consortium will be more than the first three. The main purpose of the developer joint venture is to reduce the risk, but Many large local developers also tend to be sole proprietorship.