20/9/2018-4

Central Central Disassembly and Selling Abacus does not ring?

The rent of Jiasha in Central has repeatedly broken, and the supply of office buildings is in short supply. The value of Jiaxia in the area should be high. However, the recent dismantling of the Central Central has been unfavorable news, and the sales situation is not satisfactory. Why is the Central Index launched in the Central Building, but the response is not as expected?

Last year, a group of local senior investors took part in the Mainland consortium to purchase the 47-storey office building of Central Central from Chang’an (01113) for 40.2 billion yuan, breaking the highest transaction price of the historical property. I still remember that many people were ambitions at the time, not to mention that the price was not expensive at the time (33,000 yuan per ounce, slightly lower than the market price). As long as the market conditions continue to improve, such as shipments will be profitable. In September, it seems that the wishful thinking has not started. First of all, the market has confirmed that the whole floor transaction is basically two layers, and one of the floors is sold. The price is only about 32,000 yuan, which is lower than the purchase price. Building owners and new buyers are suspected of having a small conflict. Temporary sales are not ideal.

The bid price is not high.

The sales are not ideal, is the reason why the price is too high? The owner of a class in Central Central has generally sold about 40,000 to 50,000 yuan, is it a market price? In the near-middle zone and the surrounding area, the comparison of the A/Ha, the 23rd floor of the Bank of America Center in Central changed hands in July, with an average price of about 50,562 yuan. As for May this year, the top floor of the 34th floor of No. 9 Queen’s Road Central, the commercial building of Central, changed hands by about 60,000 yuan per square foot. There are not many trades in Central for sale. According to the two transactions of Huang Jiu and Bank of America Center, the price is 60,000 and 50,000 yuan respectively. The middle to low price of Central Central is 40,000 to 50,000 yuan. .

The weakening of market conditions is one of the factors affecting trading. The comprehensive Midland Industrial and Commercial Bureau Information Research Department and Midland Business Data show that in August, only 50 of the 50 major indicators recorded a transaction volume, and more than 39 units last month. Xiamen recorded zero transactions. The industry believes that the atmosphere is obviously frustrated by the Sino-US trade war and stock market volatility.

Another key factor comes from the background of the owner. In the past two years, the commercial price of Central Commercial Building has risen rapidly. Since last year, Hengdi (00012) purchased the land of Murray Road parking lot. After the land price reached 50,000 yuan, the price of Jiasha was taken off. In fact, both the Wing Kau and the Bank of America Centres are trading at high prices. This reflects the fact that there are not many commercial buildings in the past which are available for sale in Central, and there are few owners who are willing to put in the market. When there are owners selling a layer of Jiasha, if they touch Wangwang, they will Come to multi-channel consortiums, users and investors to compete. Regarding the quality of the property, the Central Centre is definitely the standard one, and it is one of the top commercial buildings in Hong Kong. The index is not doubtful, but the 47th floor of the Central Central is sold by a group of investors, even for individual buyers. It is claimed that the long-term holdings are not for sale, but for the buyers, the 47-story floor is a potential release. It is conservatively estimated that half of the floor can be sold, involving more than 20 floors. The supply is greatly increased and it is difficult to digest in a short time. For buyers, there is no need to snap up, so we will wait and see.

In addition, the entrance threshold of the Central Centre is not affordable to the general investors. Comparing the three commercial buildings available for sale in Central, Global Building, Huang Jiu and Bank of America Centres, each floor area is about 10,000 to 13,000 square feet, based on market value. Each floor is about 500 million yuan, and the central area of ​​each floor is about 25,000 square feet, which is 1 times larger than the area of ​​3 buildings. Each floor involves more than 1 billion yuan. The high unit price narrows the range of buyers that can be accepted. It is no wonder that individual investors have changed their positions earlier and put the whole floor into 12 units. The lowering of the threshold is accepted, reflecting that the full-scale floor investment is not affordable for many consortia.

The owner holds the goods at a high interest. The buyer keeps watching.

There is another factor that cannot be ignored. The entire transaction process of the Central Center has also been quite turbulent. A group of buyers have been looking for bank financing, and it is no secret that foreign banks have completed high-interest loans. Holding goods at a high interest rate, the owner’s shipment is more urgent and understandable, but when the market conditions weaken, the buyers wait and see, causing a sawing situation, making the originally attractive Central Center, the dismantling reaction is not as expected.