The consortium has rushed to compete in ultra-low prices
The political events are overshadowed, and the tide of demonstrations has not been uninterrupted for a few months. A series of short-term factors have directly hampered the development of the developer’s mentality; the West Kowloon high-speed rail station giant commercial landlord closed the tender yesterday and only intercepted three tenders for eight years. The record with the least amount of bids, and the bidding consortium is dominated by large local developers. According to industry sources, many developers are worried about the medium and long-term prospects of Hong Kong’s tourism, hotel and retail industries. They are expected to test the government’s bottom line with low prices. The bids are very conservative and the opportunities for land-based bidding are increasing. Newspaper Real Estate Group
Recently, the social atmosphere was once again tense. The West Kowloon High Speed Rail Station was closed down by the commercial landlord yesterday. The Lands Department announced that it had intercepted three tenders. As far as the scene was concerned, the participating consortiums were Cheung Kong and SHKP, and they were bidding on a sole proprietorship; while Wharf was co-signed by Henderson, Henderson, H.C. and Li Fu in a consortium. Instead, the number of tenders received was the eight-year low record since the 2011 bidding for the land of the Shamen Trade and Tourism Industry. The year was over 800 million by the Yijing Group. Captured.
Create a new low in the number of entries in the past eight years
The consortium that has entered the bidding is still dominated by large local developers. In the Wharf warehouse, Chairman of the Tak Fung Property, Mr Leung Chi-kin, said that the tender was entered into the tender, and the bids considered various factors, such as recent political events and social movements, and they counted themselves and considered that the bids were still at a reasonable level. It is normal to think that the overall economy is volatile in the short term, and it is optimistic about the development of commercial projects in the long run. It is hoped that the government will adjust the market conditions. If the set price is different from the market conditions, it will flow. At the same time, some developers have revealed that the size of the commercial landlord is large and should be split into two or even three plots to facilitate the participation of more developers and help reduce the risk of the flow label.
Liang Zhijian: bidding to consider social transport and other factors
According to industry insiders, due to recent political events, the hotel occupancy rate is low and office rents are falling. It is believed that many consortia are bidding at ultra-low prices, but the government should not sell land, so there is an opportunity to appear . In fact, the market has lowered its valuation twice in the past, with a cumulative decline of about 30%. The valuation has gradually dropped from the original 790 billion to about 37.9 billion to 47.4 billion. The land price per square floor is about $12,000 to $15,000.
The government does not sell land.
With the reversal of the market conditions, the industry has cumulatively lowered the valuation of the site by about 30%. From the announcement of the sale at the beginning of the year, the price was reduced from $17,000 to $25,000 per person, down to about $12,000 to $15,000. The valuation has been lowered from the original 56.3 billion to 7.9 billion to about 3.8 billion to 4.7 billion.
Lin Haowen, executive director of Rating Square and director of valuation and consulting department, said that the number of entries was similar to expectations and was dominated by strong developers. I believe that the Development Chamber will count each other, but because of the huge amount of investment and the recent market conditions, the bid will be extremely conservative. It is believed that the government is not willing to sell land and lower the reserve price. Due to the large scale of project development and long payback period, the estimated payback period is about 30 years.
The latest valuation is about 38 billion to 47 billion
Liang Peiyu, senior director of Huafang Consulting and Evaluation, said that the number of bids is in line with market expectations. However, due to recent political and social movements, it has seriously affected the confidence of the consortium in bidding for commercial land, and the investment in this project is huge and the return period is long. The consortium’s bid is very conservative and prudent. It is believed that the market price set by the government does not closely follow the current market conditions and there is a greater risk of liquidation.
Located at the West Kowloon High Speed Rail Station, the commercial landlord is one of the largest projects in a single tender in recent years. The geographical location is strategic. The site covers an area of over 640,000 square feet and the highest building capacity is over 316. Chinatown, designated as non-industrial use. According to the land sales regulations, the project cannot be sold separately after it is completed, but it can only be sold in whole buildings. In addition, the winning bidders are required to construct integrated station entrances and exits and covered footbridges.