Kai Tak commercial land flow standard 9 bidding no one to reach the reserve price
The Lands Department announced yesterday that the commercial site of No. 5, Area 4C, Kai Tak, which was closed last Friday, refused to accept the bid because the price did not meet the government’s reserve price. This site is the first commercial site in the old Kai Tak Runway area with a maximum floor area of approximately 612,000 square feet and is designated for non-industrial use (excluding residential, warehouse and gas stations but including hotels). From 8.9 billion to 9.8 billion yuan. This is the second time after the land of Wenhui Road on the top of the mountain in October last year.
According to the Lands Department, the Government publicly sells the land in the land sale plan in the market according to the established mechanism. If there is no price to reach the reserve price assessed by the government professional appraisers, the government will not sell the land.
It is reported that on Friday (January 25), the commercial land of No. 5 Kai Tak District 4C was intercepted and received 9 tenders, including Cheung Kong (1113), Shun Lee (083), Ka Wah (173) and Eagle. Jun (041), Astute Max, Jianye Real Estate, Yuanzhan (035), Wharf Property (1997) and Xindi (016).
Wen Weiming, general manager of Ka Wah International Business and Marketing Planning, said that the land flow standard reflects the gap between the developers and the government in the view of the site. It is believed that the commercial part of Kai Tak District will develop in time and the commercial land will be returned for a long time, but it is emphasized. Kai Tak land quality. The relevant project provisions are not for sale. He said that he did not affect the group’s bid, because the proportion of office buildings and hotel rooms can be adjusted.
Expected not to affect the market atmosphere
Lin Haowen, Senior Director and Director of Valuation and Consulting at Knight Frank, bluntly said that there is no expectation that the project will be carried out. Even if the project has a large scale of development and long payback period, it cannot be dismantled, and future transportation facilities are also a problem. It will be too low.
He continued that under the current mechanism, the Government will not announce and is not suitable for the announcement of the reserve price, but it is certain that there will be a certain gap between the calculation of the government and the developer’s calculations, especially on some commercial sites that cannot be sold, because the developer will consider the future cash flow. The factors go to bid.
Lin Haowen believes that this time the flow is an individual event and will not affect the market sentiment. If the property market is really in the adjustment period, I hope that the government can be more market-oriented in the future, and it is estimated that the land price will be adjusted downward by about 5% to 10% this year.
The Li Jiage Group and Chief Executive Officer Shi Yongqing responded to the Kai Tak Commercial Landmark, saying that the current standard reflects that the government’s high-level strategy is inconsistent with the work of frontline officials, so that the government still maintains a high land price policy. He also said that the high land price does not necessarily lead to high property prices, but the land flow standard will lead to a decline in supply, which will make it difficult for property prices to fall sharply.
Calling on the government not to rush to push the place
Lu Weide, senior regional business director of the Central Plains (Industry and Commerce) Industrial and Commercial Department, believes that due to the undeveloped development and supporting facilities in the Kai Tak Cruise Terminal area, and the high investment in hotel projects, the return period is long and the recent economic data is not satisfactory. Therefore, it is a normal practice for developers to make tender bids. It is a normal practice to rush to bid for aggressive prices. It is suggested that the Government can make more improvements in the development of Kai Tak, or when the new residential developments in Kai Tak Development Area will be completed. launch to market.