Hongan 869 million won the residential site of Tsing Yi Estate
The price of property prices rose sharply. Hong An (01243) took Tsing Yi Hao Duan Road plot with a total consideration of 861 million yuan. The highest floor price was priced at 8,491 yuan, which was a three-fold increase in two years. If the developer plans to build a residential floor plan, the land price will be even more expensive.
The price of 8491 yuan rose three times in two years
The site is located at the junction of Mautian Road and Hengmei Street. It covers an area of only 14,000 square feet and is a small-to-medium-scale development project. Last week, the closing of the tender attracted more than 25 consortiums. Many of them are also Chinese-funded developers.
The Lands Department announced yesterday that the land had been acquired by Wang On Property for approximately RMB 869 million. The maximum allowable floor space permitted under the land lease was calculated at 102,000 sq.ft. and the land price was RMB 8,491. This is in contrast to Jiaming Holdings (01271) in 2016. In May of this year, the site of Xishan Road was landed at a price of 1,980 yuan per site. Land prices rose sharply threefold in two years, setting a new record for land prices in Tsing Yi.
The requirements for floor plans are more complicated in the land leases. The commercial floor scale that the developer plans to build will affect the final buildable floor area. For example, the more commercial floors to be built, the more the entire project can be built.
According to the developer’s preliminary plan, it is the tendency to develop pure residential projects. It is not planned to build a commercial floor and the residential part of the building is approximately 80,000 sq. ft., so that the floor price of each residential building is as high as RMB 10,800, which is comparable to this year. The initial investment of $12,000 for each of the residential sites on Anderson Road in Kwun Tong indicates that the land price in the New Territories has gradually become more closely linked to the urban areas.
About 300 buildings were opened.
The Guti Road plot will be listed in the 5th The Met column in Hongan. Huang Yaoxiong, CEO of Hong On Estate stated that based on the Group’s past experience in selling The Met series of open units, it does not believe that the land price is too high, and it is expected that the project will be built approximately. 300 groups, open-ended 200 square feet, with a total investment of 1.3 billion yuan.
According to the total investment amount disclosed by the developer, taking into account the 10% factor of “flood”, the investment amount for each investment is approximately RMB 10,800, which is calculated at a 20% development profit and a utilization rate of 80%. It is estimated that the actual sale price will reach RMB 24,000 in the future. Yuan, which has a practical price of 14,800 yuan compared with the same-size index housing estate, Lai King Wan (19 years old), and Yingcui Peninsula (18 years old), which has a practical price of 16,100 yuan, which is 5 to 60% higher.
According to Zhang Qiao, deputy managing director of Valuation International Asia Valuation and Advisory Services, the land prices reflect that the developers are quite optimistic about the small unit market. It is expected that property prices will still record increases in the future, while the price floor will be 5 million to 6 million yuan. It is still the market chase. He also stated that the value of the commercial floor adjacent to the site is different, and therefore the developers tend to build pure houses.