Kai Tak Runway Commercial Ground Gun Unexpected Flow Mark

The Government has launched five tenders for the Kowloon East Kai Tak Development Area in about three months. The commercial and hotel site (No. 4C5 land) in Area 4C of the Kai Tak Raceway Area was closed on Friday (25th). It was the first non-residential land to be launched in the runway area. A total of 9 bids were received. However, all the consortium’s bids did not reach the government’s reserve price, and the cold-blooded bid ended. It became the super mansion of Wenhui Road on the top of the mountain in mid-October last year. After Wang Liubiao, the second land sold by the government in more than three months was sold.

9 consortium bidding is not as good as the reserve price

The 4C5 land, which has just flown, covers an area of ​​about 102,000 square feet. It is the 20th Kai Tak area land launched by the Government since 2013. It is also the fifth tender land area for the tender. The market valuation is 7.35 billion to 9.49 billion yuan. It has attracted local major developers such as Cheung Kong (01113), Wharf Property (01997), SHKP (00016) and Yingjun (00041) to enter the tender. The Lands Department has received 9 tenders, which is the most reactive land response in the runway area. Good once.

Just as the market expects the land to be approved in the position of the landlord, it is against the high trend. The Lands Department announced yesterday that the amount of the tenders for the nine tenders did not meet the reserve price assessed by the government’s professional appraisers. Therefore, the Government did not accept all the tenders and became the first landmark land in Kai Tak. The department reiterated that the Government’s policy objective is to provide a stable and sustainable land supply to the market. It will not be affected by the tender results of individual land and will consider re-launching the 4C5 land at an appropriate time.

Liang Zhijian: The government “know the environment”

The Lands Department emphasizes that the entry price depends on a number of factors, including the attractiveness of the bidding consortium. The bidders will consider the market, the company’s situation and the development strategy. The Government will not speculate on the bidder’s bid.

Wheelock (00020) was admitted to the property through its Wharf Property. The Vice Chairman of the Wheelock, Mr Leung Chi-kin, said that the 4C5 site received nine tenders. “There is no reason why all the nine labels are scared.” He bluntly stated that the group is at market price. In the case of entering the tender, the price is not arbitrarily set. “There is a need to do it and bidding.” The current market environment has changed. However, when the Government determines the reserve price, it “sees the environment” and leads to the flow of the target. It is expected that the Government can follow up. Market price to determine the price of the land.

The 4C5 land is the fifth non-residential land that has not been successfully awarded since the government announced the land sales plan in the 2011-12 financial year. Three of the remaining four plots have been re-approved in 2014-2016; and the market value of the peak Wenhui Road in the current fiscal year, the market valuation was as high as 24.258 billion to 48.517 billion yuan, the Lands Department reiterated Will consider launching the site at an appropriate time.

The second month of 3 months, hotel valuation differences

Although there are two plots of land in just over three months, the industry believes that the 4C5 flow label is only an individual event. It is estimated that due to the traffic facilities of the site and the need to construct a hotel floor, the developer and the Lands Department will calculate the land price. , prompted the 4C5 land flow to end.

The land sales regulations show that the building area of ​​the 4C5 land is about 612,000 square meters, and the restrictions of about 183,700 to 306,100 square meters are not required for hotel use. The Secretary for Development, Mr Wong Wai-lun, once expected to provide about 340 to 570 hotels. room. Mr. Zhang Shengdian, Director of Pu’er Enterprise Development (valuation and property management), believes that developers have limited interest in building hotels in the Kai Tak Runway area. However, if the Government determines the reserve price based on hotel development, the value of the hotel is higher than that of the office building. In the case of high, it may cause a streamline ending. Zhang Shengdian believes that the government will learn from this experience. In the future, when the 4C5 land is re-launched, or the adjacent 4C District No. 4 commercial and hotel land is tendered, the land price has a chance to be closer to the market.

Senior surveyor Mrs Cheung said that the development of the Kai Tak Cruise Terminal is still immature. The site is used for the construction of hotels. The tourist source is narrow and the hotel is often long. It is estimated that the developers will consider the relevant factors and make the bid. There is a gap with the government’s reserve price.