China and overseas low-cost land sales, sales of more than 60%

Tai Po Tianzhu was awarded by China Overseas (00688) for 2.13 billion yuan in 2016. The floor price per square foot was approximately RMB 1,848. Together with the development cost, etc., based on the first price list, it is estimated that the sales profit will be as high as 6 More than 80%.

The predecessor of Tianzhu was a greenbelt in Shantang Road, Lizhishan, covering an area of ​​about 406,000 square feet. After being rezoned for residential use in 2015, the tender was launched and the floor can be built up to 1.153 million square feet. In the meantime, it was subject to judicial review by environmental protection groups. The Government even needed to postpone the tendering time. The haze of judicial review at the time of land tender closing has not disappeared.

Judicial review affects land prices per 1848

Although the land was still successfully invested by China Overseas, the land price was as low as 2.13 billion yuan, and the land price per square foot was only 1,848 yuan. The land price in the same area after the SARS was 14 years lower, which is also lower than the market valuation. The lower limit is 40%.

If the land price is awarded, together with the construction and development profit cost of about 5,000 yuan per square foot, the estimated total cost is about 8 billion to 9 billion yuan, and the cost per square foot of floor space is about 6,500 to 7,000 yuan, to 80%. According to the practicability calculation, the first batch of Tianzhu drilling units has a price of 10,700 to 13,900 yuan, and the development profit has reached 60% to 1 times. It is expected that developers will get a very lucrative profit.

In fact, based on the cost of the land grant at the time, the market generally estimated that the project will be sold at a price of about 10,000 yuan in the future. The developers can now sell at a higher price, reflecting the developer’s vision at the time and the recent years. The impact of rising prices.