Hong Kong Wen Wei Po (By Ngan LunLok)
Facing internal and external problems of continuous demonstrations conflict and the deterioration of the Sino-US trade war, the tender for commercial S shop land near Kai Tak Sports Park in Shing Kai Road, Kai Tak was closed yesterday. The industry had been pessimistic about the land bidding reaction, but the Lands Department announced that it had received 10 tenders yesterday, showing that developers were unexpectedly enthusiastic on the land. The surveyor believes it is not excluded that some developers are entering the tender with the mentality of "bargain hunting” because of the recent social turmoil.
Most of the bidding consortiums are sole proprietorship.
The Lands Department announced, yesterday, the commercial S shop land near Kai Tak Sports Park in Shing Kai Road, Kai Tak gained 10 tenders, more than the 9 and 6 tenders for the commercial lands of the same district that closed in January and May this year. Synthesizing market information, the bidding consortiums yesterday include Far East Development, Sino, Wheelock, SHKP, Cheung Kong, China Overseas, Great Eagle, and K&K Property, many of which are sole proprietorship to bid.
Asked about the government's increase in default cost including rising the deposits and so on, the Senior Manager of Property Valuation and Research of Wheelock Properties, Ho WaiKam believes that the Government’s new measures will have little impact and they will count according to market conditions, also the Group will bid in sole proprietorship. While the Administrative Manager of K&K Property, Lam YeeWah expresses to look good to Kai Tak's development, but frankly says their pricing will be cautious and conservative considering the current social situation.
According to data, the commercial S shop land near Kai Tak Sports Park in Shing Kai Road, Kai Tak covers an area of about 121,375 sq ft. and can be built on about 344,448 sq ft, with 45-50% among can be used as hotel and its ancillary facilities (including retail ), and the rest is office building, also the two parts are not detachable sale, which will be a long-term investment. The project is adjacent to the proposed MTR Sung Wong Toi Station in the sha tin to Central Link, which will be opened to traffic in 2021, and the Kai Tak Sports Park will be completed in 2023, so looking north to the Sports Park and south to the sea in future becomes the selling point of the project.
Although the location of the land is superior, but it is worth noting that both two commercial land sites launched by the government in the first half of the year run into a stone wall, with No. 5 land site in Kai Tak 4C district closed in January was failure of bid and the No.4 land site in Kai Tak 4C district closed in May later came across forfeiture of deposit in June although it had been sold to winning consortium at over HKD11.1 billion, plus the recent social is unrest, so the market had been pessimistic about the bidding reaction yesterday.
Knight Frank: the mentality of "bargain hunting”.
The market has predicted earlier that the sq ft floor area land price of the project is about HKD8,000-10,800, and the valuation is HKD2.76-3.72 billion. The Senior Director and Director of Valuation and Consulting of Knight Frank, Lam HoMan expresses, the consortiums entering the bidding yesterday were more than expected, very enthusiastic, and it is not ruled out that some developers had entered the bidding with the attitude of “bargain hunting”. It is estimated that developers will be more conservative in their bids, because there were a number of negative factors in recent days, and the major customers of such project are tourists in Sports Park, also it has to be supported by social consumption ability.
The Director of the Midland Surveyors, Lam ChiPun expresses, Kai Tak is located in a future important development town and urban area, although there were two commercial land sites in the same district came across failure of bid and suspension of trading, but the scale of the land launched this time is relatively small with lower risk, so a lot of consortiums were attracted, exceeding the market expectations, while the commercial and hotel parts are not detachable sale, thus the pricing of the consortiums will also reflect the above factors.