The price of the Qingshan Road project was steadily hit by 2.6%.
The urban project was fiercely competitive. The URA announced all the prices of the Sham Shui Po Castle Peak Road project. Henderson Land (00012) won the project with a price of 1.37 billion yuan. The winning bid price was only 2.6% higher than the second highest price, which beat the opponent and also reflected the competition of the project. fierce.
Henderson won the project on the 23rd of last month, with a land area of 133,000 square feet, with a floor price of 10,279 yuan per square foot, slightly lower than the market’s lower limit of 7%, which is slightly lower than that of the same department in June. Detongzhou Street Project (10,500 yuan per square foot) 2%.
Strong competition among developers
The URA announced the price of the remaining 16 tenders yesterday. According to the data, the second highest tender price was 1.333 billion yuan (10,014 yuan per square foot of floor space), so it was only HK$35.2 million or 2.6. %, overwhelming the second highest bidder, successfully won the project.
In fact, the distribution of the bid price announced by the URA shows that the competition of the developers is fierce. For example, the bid price of the first six tenders is higher than 1 billion yuan (7,513 yuan per square foot of floor price), and the median price of the project. It is 901 million yuan, or 6,769 yuan per square foot.
As regards the lowest developer’s entry price of only 688 million yuan, the floor price per floor is as low as 5,169 yuan, which is nearly half of the low bid price. The situation reflects that some consortia are bidding at low prices and only seek to “kill the chicken”. This situation has occurred in the Fanling Industrial Site and the Yau Tong Gaochao Road residential land tendered by the Government in the past. In some cases, the lowest price is included, and only the bid price is 36%.
According to the bidding conditions, the project can build up to 160,000 square feet of floor space. However, after the completion of the project, the developer must return nearly 27,000 square feet of commercial floor to the URA. The residential floor is only 133,000 square feet. It is also necessary to hand over the 18 gangs of a total of 7,680 square feet to the URA for the purpose of changing the building, which has affected the developer’s bid.
Some industry think that the URA’s announcement of the winning bid data will increase market transparency and reduce public doubts. For developers, in the long run, reference can be made to relevant data to help bid in the future.