6/8/2018-9

Cheung Kong has won the third phase of Wong Chuk Hang Station, the first land acquisition in two years, the total investment is 25 billion yuan, and the price is up to 30,000.

The third phase of Wong Chuk Hang Station, which has historically paid the most expensive railway project, was defeated by Changshi (01113) and won by four other local consortiums. It belongs to the Group’s first land acquisition in the past two years. The market expects investment of about 25 billion yuan. After the completion of the project, the price of the utility price reached 30,000 yuan.

After the chairman of the company, Li Zeju, took over, he landed the land. The Phase 3 project of Wong Chuk Hang Station, which was recently closed, is the only part of the entire Wong Chuk Hang Station which has a shopping arcade. It can also be built with a floor space of 1.5 million square feet. The landscape is also the first and second. The period is ideal, so the land premium amount is as high as 12.971 billion yuan, and the land premium per square foot is about 8,614 yuan, which has become the railway project with the highest premium price. The MTR announced yesterday that the project was defeated by Changshi and another four consortiums.

Changshi: The price is ideal, the profit is reasonable

In recent years, Cheung Kong has rarely invested in the land. This is the third phase of the Wong Chuk Hang project. It was not only in September 2016, but it won the Hong Kong residential land in Sha Tin for another $1.95 billion in September 2016. Since September 2011, the Group has once again won a real estate project in Hong Kong for over 10 billion yuan. It was also the founder Li Ka-shing retired and his son Li Ze-jue took the first place to win a residential plot.

Wu Jiaqing, Executive Director of Cheung Kong, said that the Group has been actively participating in land auctions. According to the conditions and potential of each project, it has never been willing to take the plunge. However, the price of this project is very satisfactory and the profits are reasonable.

Wu Jiaqing pointed out that there is only one station between Wong Chuk Hang Station and the Golden Bell Station of the transportation hub. The traffic is convenient and there are about 500,000 square feet of shopping malls. The completed properties can enjoy the open landscape and have confidence in the development potential of the project. And is expected to be completed in 2023.

In the past two years, the MTR has approved three Wong Chuk Hang Station projects. The first and second phases of the projects approved in March and November last year have a land price of about $17,000 to $19,000 per square foot. Although the landscape of the third phase of the project is better, considering the huge amount of total investment and the lack of competition for Chinese capital, the estimated land price will be similar. With a floor area of ​​nearly 1 million square feet, the total land price including land premium is expected to be 17 billion to 21 billion yuan. Together with construction costs, the total investment may exceed 25 billion yuan. Based on the residential floor, the investment per square foot of floor space is about 25,000 yuan.

Nearly one million residential floors for 1200 people

Mr. Lin Haowen, Senior Director and Director of Valuation and Counseling at Knight Frank, said that he was not surprised by the long-term winning bid. In recent years, the Group has been selling a number of properties for sale. It is time to replenish the land reserve. It is expected that there will be a large number of small and medium-sized units. Units and special households, after the completion of the project, the price of each sale amounted to 30,000 yuan.

Chen Chaoguo, managing director of Savills Valuation and Professional Consultancy Services, said that due to the recent tightening of capital restrictions, the slowdown of Hong Kong’s entry into Hong Kong is beneficial to local developers to invest in the land. It is also expected that local consortiums will not bid. As aggressive as ever.

The project is located in the northwest of Wong Chuk Hang Station site and adjacent to the Nam Long Shan Road cooked food market. The total floor area is 1.5059 million square feet. The residential floor is nearly 1 million square feet, providing no more than 1,200 people and another 500,000 square feet of shopping malls. The developer must return the MTR after completion