The market expects the price of 11.8 million to see a new low
The largest residential area in the Kai Tak Runway area has been opened to date. The No. 1 site in Area 4A was captured by K. Wah International (173) and will be captured by Tak Fung (020) and China Overseas (688). Got it. The bid price is about 12.74 billion yuan, equivalent to only RMB 118,000 per land, not only lower than the market expected lower limit, but also the new low in the runway area. The industry said that the trade war and the unstable social atmosphere in Hong Kong have made developers’ bids more conservative and reflect their bearish outlook. However, some people in the real estate industry believe that unless the market conditions deteriorate further, the land price of the runway area should have bottomed out.
The Lands Department announced yesterday that the New Kowloon Inland Lot No. 6577 and Kai Tak Area 4A No. 1 were granted to the consortiums of K. Wah International, Wheelock Properties and China Overseas Group for $12,399.8 million
The site occupies an area of approximately 176,000 square feet, with a maximum floor area of approximately 1.076 million square feet, making it the largest residential site in the runway area. The “back row" of the runway area is designated for residential use. More than 30,000 flats are required to be built into residential care homes and child care centres.
Wen Weiming, director of Kahwa’s business and marketing planning, said that Kai Tak is the most eye-catching large-scale development zone in the future. The scale of supporting facilities in the region is 100 billion, which is optimistic about the prospects in the region. He continued, the three developers of the joint venture have development experience in Kai Tak, and look forward to the new combination in which to play different experiences. Wheelock said that it is very pleased that the consortium has invested in the land and the site is near the sea. Most of the units enjoy the CBD2 sea view and have great development potential.
Kai Tak residential land prices are expected to bottom out
Lin Haowen, a senior director of Knight Frank, expects the total investment of the land to be up to 20 billion yuan. After completion, it is expected to take off at 26,000 yuan per trip. He also said that residential land has certain attractiveness. Even if the land price is discounted, unless the market conditions and social conditions continue to deteriorate, the Kai Tak residential land price should have “bottomed out".
In view of the poor price of the winning bid, Zhang Jingda, a surveyor of the Central Plains, believes that because of the recent reversal of the trade war and the unstable social atmosphere, the developers are bleak, and the land itself has a large investment amount, and the risks are correspondingly high. The developer’s bid is quite conservative.
14% lower than the price of adjacent residential land
Previously, the market estimated that the land price per land ranged from 13,000 yuan to 15,000 yuan, and the total price ranged from about 14 billion yuan to 16.2 billion yuan. Before and after the land tender closing, all surveyors responded to the market conditions and the cold response of the bidding. The valuation was lowered. The current bid price is only 12.7 billion yuan, which is less than 12,000 yuan, which is lower than the market expected lower limit.
The adjacent residential area No. 1 in Area 4B was approved at nearly 9.9 billion yuan at the end of March, equivalent to RMB 13,700 per trip. After a lapse of four months, the land price fell by 13.5%. It is worth noting that the developers who submitted tenders last week also have Changshi (1113), Xinzhi (083) and Xindi (016), all of which are wholly-owned.