Kai Tak Commercial and Hotel recently closed with a flow of funds
When the site was first launched in May, the consortium that won the land was ordered to abandon the bid by political and environmental factors in June. It has already caused a certain blow to the property market at that time, but It seems that “lower places are not low”, and the price of each entry price has been tested. It reflects the unfavorable factors of local political and economic factors during the period, and the developers have changed rapidly.
The price of the entry is tested
The old airport runway in Kai Tak will be a new development area for the next three to five years. In the face of the latest political and economic situation, the land price of residential areas in the district will fall even with the market conditions, but the response is far lower than that of commercial hotels. The bottom line is that the investment risks involved are very different.
Urban residential rental is not a source of tourists
Taking residential land as an example, after retreating 10,000 steps, even after three years, the property market experienced a big drop in the market, and the long-term decline in the property market between 2000 and 2003 was repeated, but it was always a new urban building. At that time, the Shazhong line will be open to traffic. Rental is also not a source of tourists.
However, commercial, especially hotel projects, are quite different. Although the rental price of commercial buildings is much larger than that of residential buildings, and even if Kai Tak has the concept of “CBD2”, it is not the core area. The pressure on rental prices must be higher than that of residential buildings. Not to mention more, look at the recent hotel industry to reduce rents and save the country, but the effect is not great, it is a lively interpretation of the hotel investment risk, but also the reason for the recent decline in the attractiveness of commercial hotels to developers.