4/12/2017-6

Valuations of Chinese courage to grab 95% of land prices were born to Wang Jing Wang were living

In recent years, a number of Chinese developers have aggressively marketed high-quality land in Hong Kong to make Hong Kong’s land market more competitive. The Lands Department has granted a total of 16 land parcels for sale in 2017 (up to November 16, the same below) with a total land premium of 127.6 billion yuan, a contribution of 42.3 billion yuan from the Chinese level, up from 21.69 billion yuan in 2016 Yuan soared 95%; the proportion of Chinese-owned assets even reached 33.2%, representing an increase of 7.4 percentage points from 25.8% for the full year of 2016.

Five of the 16 sites approved by the Lands Department in 2017 were wholly-owned by Chinese-funded consortia, one of which was jointly funded by a Chinese-funded consortium and the other one by a consortium of Chinese-funded and local developers. Based on a rough calculation of the interest held by the Chinese-funded consortia, the total amount of land purchased by the Chinese-funded consortium in 2017 is about 275.9 thousand square feet, accounting for 31.3% of the total land use area of ​​about 18.8 million square feet. This represents a decrease of 10.4% compared with 3.08 million square feet in 2016, but its share increased by approximately 6.9 percentage points.

In 2017, many Chinese-funded sites attracted much attention. Among them, HNA Group, which purchased two residential sites in East Kai Tak in Kowloon in the fourth quarter of 2016, spent a total of RMB12.97 billion in the first quarter of 2017 and purchased two other phases Adjacent to the Kai Tak residential land, the total land price of 4 sites amounted to 27.2 billion yuan.

In addition, Long Kwong Properties (03380) and KWG (01813) purchased the residential area in Linnan Road, Ap Lei Chau for about HK $ 16,856 million in February 2017 and once became the most expensive residential land in the history of land sales. However, Records were dished out by residential property in Hing Wah Street, Cheung Sha Wan in November to $ 17.288 billion from the consortium of 4 local developers, including Shimao Property (00813), Patterson Trust (00083).

Chinese crazy beware of residential land, the local large-scale developers to storm industrial and commercial land, in May there are two consecutive birth to King. First Evergrande (00012) voted 23.28 billion yuan on May 16 to acquire the commercial premises of Meiri Road Central in Central District. The floor price per square foot (hereinafter referred to as the floor price per square foot) exceeded $ 50,000. The cost and floor area The prices were all new land sales non-residential land records, but the cost record remained only for about half a month, it was 24,501 million Nan Fung voted Kai Tak a commercial / hotel to break.

Local developers to increase soil storage

As many local developers are encouraged to increase residential land storage through land premium, there are at least four cases of premium for land exceeding $ 1 billion in 2017, with Xindi (00016) being the largest of three and the total amount being Reaching 22.6 billion yuan.

Zhang Alice, Deputy Managing Director of Colliers International Asia, believes that the pace of Chinese-owned residential investment in Hong Kong will become more cautious. In 2018, it is estimated that China-based capital will be converted to a partnership with local developers. Due to the notable increase of residential property prices over agricultural land in recent years, the amount of land premiums in rural areas is likely to rise and fall, prompting developers to make up for the land premium as soon as possible.