Every 12,000 people will be worth 12.7 billion
The political situation is turbulent, the property market is in full swing, and the No. 1 plot of Kai Tak 4A District was opened yesterday. The consortium of Jiahua (173), Wheelock (020) and China Overseas (688) joined the group for RMB12.7 billion. The land price per floor is only 11,842 yuan, which is the lowest level of the Kai Tak runway. It is also the lowest in the whole two-and-a-half-year price of the Kai Tak District, which is 13.6% lower than the price of the neighboring land four months ago. Reporter: Chen Baoen
The political situation in Hong Kong is tense, affecting the confidence of developers in investing in land. Kai Tak’s “flour price" fell by 13.6% in four months. The residential area of No. 1 in Area 4A of Kai Tak Runway District was closed on Friday and only received 4 tenders, which was the lowest residential area in the district. The Lands Department announced that the site was granted to Xinglong Hong Kong Investment Co., Ltd. with a total of 12.793 billion yuan. The parent companies include Jiahua, the venue and China Overseas. The lease term is 50 years. The three companies have experience in the development of the district, respectively, launching Jiahui, Oasis Kai Tak and Kai Tak 1.
Land price fell 14% in 4 months
The No. 1 site in Kai Tak 4A has a maximum floor area of about 1.0558 million square meters, and the floor price per floor is only 11,842 yuan. The site is located in the back row of the old runway area in Kai Tak. It is believed that the landscape of the commercial and industrial buildings in the Kowloon Bay area is mainly for private residential use and residential care homes and child care centres.
The rear land of the last runway area is No. 1 in Zone 4B. In March this year, it was acquired by Wheelock, Henderson Land (012), China Overseas Land and New World (017) for a total of 9.893 billion yuan. The land price was 13,702 yuan, which was 13.6% lower than the neighboring land price in 4 months. In the whole Kai Tak District, in December 2016, 1K District No. 2 was awarded by Jiahua for 5.828 billion yuan, and the land price per floor was 10,255 yuan. The project later developed into Jiafenghui, which will be launched in the second half of this year. As for the industry’s earlier estimates, the minimum floor price per floor of the site is $13,000, which is 8.8% of the lower valuation limit of the winning bid. In addition to the successful bidder, other bidders include Xinzhi (083), Xindi (016) and Changshi (1113).
Wen Weiming, Director of Ka Wah International Business and Marketing Planning, said that he is very pleased that the company has invested in this precious land. The project is strategically located. The Kai Tak Development Area is Hong Kong’s most eye-catching large-scale development area in the future, with more than 100 billion yuan. Facilities, optimistic about the prospects in the area, and honored to vote for the land in the area. Jiahua and the group company have rich development experience in Kai Tak, and look forward to the new combination of different experiences to jointly create a new quality residential project.
The string is the price reduction
Lin Haowen, senior director and valuation and consulting department of Knight Frank, said that the bid price was lower than expected, reflecting that developers believe that recent social movements and Sino-US trade wars have affected the time and market for selling. In addition, there is currently a vacant tax. The sale of flats has a slow impact on profits. Therefore, there is a discount on the offer. However, it is believed that most developers still have confidence in the market outlook. He expects to sell 26,000 yuan each after the completion of the project. The total investment cost is about 18 billion to 20 billion yuan. It is estimated that the project will build a hybrid mansion. Based on market conditions, it is estimated that small and medium-sized units will be the mainstay.
Land prices plummeted, and East Kowloon second-hand saw a price cut. The three-bedroom E-room of the three-story high-rise room in Niuchiwan has an original price of 13 million yuan. The price was reduced by 10% to $11.5 million.