The price of Kai Tak Runway is 1.29 million. The price of the high-end silver is over 11.1 billion.
The first commercial and hotel site in Area 2C, Kowloon, which was launched in the runway area of the East Kai Tak Development Area, Kowloon, is located in Area 4C (hereinafter referred to as the 4C5 land). Although it was unexpectedly flown in January this year, it is adjacent to the 4C Area No. 4 (hereinafter referred to as the 4C4 land). Commercial and hotel land, under the cover of the Sino-US trade war, is still actively contested by developers. The result is that Gao Yin Finance (00530) has won more than RMB 11.1 billion, and the price of each floor is lower. It is said that the floor price is 12,888 yuan, which is close to the market expectation ceiling and creates a new high in the price of the Kowloon East commercial floor.
Adjacent to the land in January this year
The 4C4 plot was awarded between the 4C5 plot last time and the 4C3 plot landed at the beginning of Xindi (00016). It is a “front row” of Victoria Harbour and sea view. It was received on Friday (10th). 01113), Xindi, Xinfang (00083), Wheelock Real Estate, Yingjun (00041) and Gaoyin Finance entered the bidding. The 4C4 land was granted to Junteng Investment Co., Ltd., a subsidiary of Gaoyin Financial Co., Ltd. for approximately RMB 11.124 billion.
The land area is 115,089 square meters. It is estimated that the highest building capacity is about 816,165 square meters. The transaction price is 12888 yuan. According to the land sales regulations, the 4C4 land should have no less than 258,947 to 433,579 square meters of floor space for hotel use, and the rest can be used as commercial or hotel supporting floor. Developers are not allowed to dispose of the property. The market valuation of the land is about 8.2 billion to 11.22 billion yuan, and the floor price is 9500 yuan to 13,000 yuan. Therefore, Gaoyin Finance won the 4C4 land near the market expectation limit. The residential area of Area 4B (hereinafter referred to as 4B4 land) opposite the upper site was also won by Gao Yin Finance and relevant persons in November last year.
A total investment of 18 billion to build a hotel commercial building
A spokesperson for Gao Yin Financial revealed that it was delighted to re-enter the Kai Tak Runway area and expressed confidence in the long-term development potential of starting Kowloon East. The site is the only beachfront commercial and hotel site in the city, and it is planned to build a landmark hotel and office building. The total investment of the project is estimated to be about 16 billion to 18 billion yuan, that is, the total development cost per square is 18536. To 20,853 yuan. The Group will comprehensively plan the overall development of the two projects, namely 4B4 and 4C4, in order to maximize the value of the two sites and to generate synergies with the other project of the Group, the Kowloon Bay Gold Financial International Centre.
Breaking Nanfeng’s record every two years ago
Together with the current 4C4 land, the Government has sold three commercial or commercial and hotel sites in the Kai Tak Development Area since 2016. The most expensive one was the commercial and hotel land of No. 2 (hereinafter referred to as 1F2 land), which was acquired by Nanfeng in May 2017 for about 24.601 billion yuan. The floor price was 12,864 yuan. After two years, Gao Yin Financial’s 4C4 land price was 0.2% higher than that of 1F2, creating a new high in the price of the Kai Tak District and the Kowloon East Commercial Building.
Lin Haowen, executive director and chief of valuation and consulting department of Knight Frank, pointed out that although the site has full Victoria Harbour and fireworks seascape, but lack of transportation facilities and insufficient commercial atmosphere in the district, the bid price is higher than expected, reflecting that the winning bidder is optimistic about the district. And it has synergy with its projects in the region, which is “the price is determined.” The project has always developed a large scale and a long payback period. The estimated long-term rental return is about 3% to 3.5%.
Mr. Huang Yibang, executive director of DTZ’s Hong Kong Valuation and Advisory Services Department, believes that the transaction price of the land is very satisfactory. It is believed that the developers are optimistic about the maturity of development in the future and will enhance the attractiveness of office and commercial properties in the district.