It’s hard to find a luxury home.

The hilltop luxury homes are rare, and it is a rare opportunity to absorb high-quality land storage. However, the final developers’ bids have not reached the government’s reserve price. The three main reasons behind this include: 1. The property market is deteriorating, 2. The luxury market is frequently pushed, and the market is afraid. Food stagnation, and 3. Lack of Chinese investment.

The supply of large-scale luxury homes on the top of the mountain is quite rare. It is regarded as “selling one less piece". It is a rare opportunity for developers. The consortium consists of a dream combination of 6 developers. I believe it is not “Dead chicken" bids at a low price, but why is it still ending in the end?

The market situation is getting worse.

The most important reason is that the recent market conditions have deteriorated. Under the unfavorable factors such as the Sino-US trade war and the interest rate hike cycle, the property market is showing signs of turning, and the developers will adjust the land price to follow the market conditions. If the government cannot adjust the reserve price simultaneously, it is prone to appear. Flow label.

Secondly, this year, a number of luxury homes have been launched, including the 1F District King of Kai Tak, which was acquired by Xindi (00016) in May this year. The land price is as high as 25.2 billion yuan; and the third phase of Wong Chuk Hang Station, Ho Man Tin, which will be closed Station 2, Kai Tak Runway District, 4 luxury homes, etc., together with the current landmark of Wenhui Road, 8 are all tens of billions of kings.

Chinese activity is reduced by Beishui support

The number of landlords has increased significantly, but the number of strong recipients is limited. Developers are gradually becoming “food stagnation". Whether they will be willing to take the risk of competing for the high price of Wenhui Road is indeed doubtful.

Finally, last year, the Government even pushed a lot of tens of billions of land. At that time, Chinese-funded developers were still active in the market, including Longguang (03380) and other 168 billion yuan to win the ducks, Pazhou, and Lu Jin (01098). The pit station was in Phase 1, but after nearly a year of tightening capital outflows in the Mainland, the level of Chinese capital activity was greatly reduced. In the first three quarters of this year, only one residential area was won. Without the support of Beishui, the government’s ability to sell land is inevitably affected.