The Phase 4 development project of MTR Wong Chuk Hang Station was closed yesterday
A total of 6 tenders were recorded, which is in line with market expectations. The participating consortium is mainly composed of medium and large local developers. According to industry sources, it is expected that the developer’s bid will be conservative due to the recent market conditions affecting the intention of the consortium to enter the bid.
The project is located in the southeast of the Wong Chuk Hang Station development project. It is a rare railway station super-cap project in Hong Kong Island in recent years. It is naturally the focus of the market when the supply of urban projects is limited. Last month, 38 letters of intent were the next highest level. The project was closed yesterday. The MTR spokesman said that six tender documents were received yesterday. The tender documents received will be carefully considered and the results of the tender will be announced later.
Valuation is about 9.5 billion to 12.7 billion
This time, it attracted a large number of local large-scale developers and consortiums. As seen on the spot yesterday, the developers and consortia included Changshi, Xindi, Henderson and Yingjun. The Kerry Construction, Sino Land and Taikoo Real estate was entered into the tender in the form of a joint venture. In addition, Huaying Group partnered with China Overseas and Wheelock Real Estate to bid for a consortium to diversify investment risks.
In fact, the second phase of the development was won by Sino Land and Kerry Construction in 2017. It was once again a joint group and joined the new face Swire Properties to bid for the joint venture.
The current valuation of the industry is based on the valuation of the land, which is about 9.5 billion to 12.7 billion, and the floor price is about 15,000 to 20,000. It is expected that the developer’s bid will be more conservative.
Floor price is 15,000 to 20,000
Lin Haowen, executive director and director of valuation and consulting at Knight Frank, said that the number of people entering the target was in line with expectations and was dominated by large developers, as the district-owned projects and developers with synergies were more interested. Due to unfavorable factors such as the Sino-US trade war, vacant tax and social movements, it is estimated that developers will be more cautious in their bidding. They believe that the “flow target" is not a big chance. I believe the developers will “count their own". Due to recent new policies, some units will be designed as one-bedroom or open-unit units under 10 million.
Can build more than 638,000 baht
Zhang Zhichu, Managing Director of Yanliang Consulting and Evaluation, believes that the large scale of project development involves a large amount of investment. As a result, many developers have bidding in a consortium to share the risks. The bidding will be prudent and conservative, and it is expected that there will be development projects in the same district. The developer has a high chance of winning the bid.
According to the news, the land premium of the project exceeded 6.757 billion yuan, and each party was about 10,587 yuan, which was the highest among the number of times that Wong Chuk Hang Station has been launched. It is understood that the terms of the tender are as usual. Apart from the land premium and fixed dividend ratio of about 25%, the winners should be determined by the “price" of the higher bidder.
According to the information, the entire development project is located in the southeast of the Wong Chuk Hang Station development project. There are no more than 800 residential buildings in the two residential buildings. Among them, the residential floor is over 638,000 square meters and is expected to be completed in 2025.