Political events are worsening. Investment risks increase
The demonstrations in various districts continued to deteriorate. Under the impact of uncertainties, the dim atmosphere spread further to the investment market, which also affected the valuation of commercial and hotel sites near the Kai Tak Sports Park, which was closed this Friday. The risk of investment in land investment has increased, and the development of land hotels has returned to a longer period. It is expected that the number of consortiums will be reduced and the valuation will be reduced by about 10%.
In recent years, the Government has actively promoted the land in Kai Tak. The commercial and hotel premises near Kai Tak Sports Park will be closed this Friday. The site area is about 127,375 square feet and the area under construction is 343,448 square feet. It is expected to provide about 300 hotel rooms. According to industry sources, the hotel is expected to be a 3 star or 4 star hotel development.
For commercial and hotel use
According to the latest market valuation, the price of land is about 90 million to 11,000, and the market valuation is between 3 billion and 3.7 billion. Lin Haowen, executive director and director of valuation and consulting at Knight Frank, said that due to social movements and the deterioration of the Sino-US trade war, it is estimated that only about 4 to 6 developers will be included in the land on Friday, and the response will not be too enthusiastic. It is expected to be conservative on the bid. It refers to the support of social consumption power for commercial land, but the social atmosphere has been unstable in recent days, and the estimated response will not be ideal.
Lin Haowen pointed out that it is estimated that the main customer group of this commercial land is a tourist in the sports park. However, there have been flow marks and scheduled events in the same land in Kai Tak District. Therefore, there are certain variables in the commercial land tendering response in the district. The valuation is also reduced by about 10% from the original valuation. It is estimated that the total investment will be between 5.5 billion and 6.5 billion. It is expected that hotels with 300 to 350 rooms will be built, with an estimated positioning of about 3 or 4 stars.
Valuation of 3 billion to 3.7 billion
Lin Haowen believes that it is not ruled out that some developers will enter the bid with a “selling goods” mentality. It is also expected that some developers will bid in the form of a consortium to share market risks. Unless market conditions and social conditions continue to deteriorate, Kai Tak’s land price should “bottom out”. However, there is pressure on the land price of commercial land with large investment. If the government does not “go to the market”, there may be further opportunities for bidding.
Industry: Risk of flow labeling
Chen Chaoguo, managing director of Savills Valuation and professional consultants, said that the recent social events continue to ferment and there are signs of spread, and the prospects for Sino-US trade war are unclear, affecting the investment climate. The valuation of the land is also estimated. The value is lowered by about 10%. It is expected that developers who are interested in bidding will decide the price in response to the recent situation. The price list will be conservative and prudent. The price will be low and the flow label will not be ruled out.
Chen Chaoguo pointed out that the social atmosphere is unstable and the future development situation is unclear. It is expected that the developers and the consortium will respond in general. It is expected that only a few will participate in the investment, and it is not excluded to bid for the goods.
Liang Peiyu, Senior Director of China Fang Consulting and Evaluation, said that the recent social incidents and the impact of the Sino-US trade war are expected to be less than the past. The bidding is also conservative. If the government still does not Changing land prices due to market conditions does not rule out opportunities for bidding.
The old airport runway area has launched similar land this year, but the response is inferior. In the 4C area of the 4C area, which was launched in January this year, it was recovered due to the price. Later, in the 4C area of the 4C area, which was launched in May, it was originally won by Gaoyin Finance at 11.12 billion, and the price was 12.8 million. However, in June, it abandoned the transaction and ordered to leave.