The buildable floor area is 638,000 sq ft with the lowest sq ft land price at HKD15,000.
(By Ngan LunLok)
The land price is inevitably affected by the unstable property market outlook. The MTR announced yesterday to enroll letters of intent for Wong Chuk Hang Station phase 4 since today, and it will close next Monday. It is known that the project can be built with 638, 305 sq ft at the most, and is expected to provide no more than 800 units. Simply base on the land price, surveyor's valuation of the land is about HKD9.72 -12.766 billion with the sq ft floor area land price at about HKD15,230-20,000, and some people lower the valuation by 10% in response to recent market conditions.
The Senior Director and Valuation and Consulting Director of Knight Frank, Lam HoMan expresses, their latest valuation is between HKD16,500-18,500, which was about 10% lower than that at the beginning of the year. However, he is still optimistic about the response. It is estimated that there are more than 20 developers have submitted letter of intent, and eventually about 10 among will officially enter the bid. Due to the large scale, it is estimated most participated consortiums are large-scale developers, with some will enter by joint form to share development risk. He also points out that the project's land premium has an indicator effect on the market, and it also can show the attitude of the developers to the market outlook, besides it is expected the sq ft price will be HKD30,000 after completion.
It is estimated most are big consortiums to compete due to the large scale.
The Executive Director and Enterprise Development Director (valuation and property management) of PuJin, Cheong ShingDium expresses, the predicted sq ft floor area land price is about HKD20,000, with the valuation at about HKD12.766 billion, which is the upper limit of the market expectation, and it is estimated the sq ft price will be about HKD40,000 after completion. The Managing Director of WangLeung Consulting and Evaluation, Cheong KiuChoris value at about HKD15,230 per sq ft, leading the valuation to only HKD9.72 billion, which is the lower limit of the market expectation.
MTR: Terms are "very friendly".
A spokesman for the MTR expresses to launch two projects by planning for the second half of the financial year, including Wong Chuk Hang Station Phase 4 and LOHAS Park phase 12 in Tseung Kwan O, and 2,650 units are involved. Recently, the community was unstable. MTR responded the bidding terms were "very friendly" to the developers and would make any adjustments to the tender terms according to market conditions, when was asked whether it would make any adjustments to the tender terms of Wong Chuk Hang Station Phase 4 in early. In addition, due to the situation, it is believed that the government will reflect the market conditions when formulating the land premium level.
According to MTR’s announcement, the entire Wong Chuk Hang Station development project covers an area of about 7.17 hectares, and will build 14 high-rise buildings in 27-38 floors, with a residential floor area in about 3.86 million sq ft, providing about 4,700 units. There will be also a shopping mall in 506,000 sq ft, and other public transport interchanges and social welfare facilities etc. The phase 4 enrolling letters of intend this time is located in the southeast of the Wong Chuk Hang Station project, and it is expected to be built on two buildings providing no more than 800 units, besides it is predicted to be completed in 2025.
Wong Chuk Hang Station land site was launched since 2017. Phase 1 which was won by Ping An Real Estate and Road King Infra in March 2017 can be built with 576,950 sq ft, and it is HKD4.684 billion after land premium with the sq ft price at HKD8,119, providing about 700-800 units. Phase 2 which was won by Sino and Kerry in December of the same year can be built with 492,991 sq ft, and it is HKD5.213 billion after land premium with the sq ft price at HKD10,576, providing about 550-600 units; Phase 3 which was won by Cheung Kong in last August can be built with 1,505,884 sq ft (including shopping malls), and it is HKD12.971 billion after land premium with the sq ft price at HKD8,614, providing no more than 1,200 units.
The price after the land premium for Edward Wong Industrial Centre is more than HKD460 million.
In addition, the Lands Department announced yesterday that, SHKP's Edward Wong Industrial Centre in Wang Wo Tsai Street 13-23, Tsuen Wan completed the land premium, with the amount at over HKD468 million after land premium, and it is in commercial/residential use. The sq ft price after land premium is about HKD2,788 base on the reconstructed total floor area of about 168,000 sq ft.
