The industry valuation is between HKD4.8 billion and HKD7.7 billion, with the sq ft sales price above from HKD16,000.
(By Lai ChiTin)
The political impact is still raging in Hong Kong, while projects from MRT and authority have greater attraction to developers under the haze of the real estate market. MTR’s residential project LOHAS Park phase 12 in Tsueng Kwan closed the application and had collected 33 letters of intent yesterday afternoon, and it not only received ideal response as expected but also set a new record of the most letters of intent since the launch of LOHAS Park, also it is expected the project can build up to 2000 units. The industry predicts that the floor area sq ft land price will be between HKD5000 and HKD8000, with a valuation of about HKD4.8 billion to HKD7.7 billion, and it is expected that the sq ft sale price will start from HKD16,000 after completion.
MTR’s residential project LOHAS Park phase 12 in Tsueng Kwan closed the application for development at 2 p.m yesterday, with 33 letters of intent received. Developers include China Overseas Land & Investment, Chinachem, K&K Property, Wheelock, SHKP, Nan Fung, New World, Chevalier International, SEA Group, Empire Group, etc.
The project is located on top of the planned "THE LOHAS" mall, south of MTR LOHAS Park Station, with a maximum residential floor area of 961,000 sq ft, and it will supply no more than 2000 residential units. In terms of unit number, it is the largest project in the district in 5 years.
The average unit area is the smallest.
According to the data, the previous largest land site in the district was phase 6 launched in December 2014 and won by Nan Fung and Sino-Ocean Group, and current it is LP6, which can build 1,474,000 sq ft of floor area and will supply not less than 2400 units. However, LOHAS Park phase 12 launched this time only can build floor area of about 961,100 sq ft, that is, the average unit area of the project is only about 480 sq ft, the smallest in LOHAS Park phases 1 to 12 although the number of units is the largest in five years.
The surveyor in Centaline Property, Cheong King-tat expresses, each phase of LOHAS Park has always received ideal response when collecting letters of intent over the years, and phase 12 has collected 33 letters of intent, reasonable number and 4 more than that of the phase 11 also located in the center, showing that the response is ideal and developers are desire for high-quality urban land and optimistic towards the future market.
Cheong points out that, the development of LOHAS Park has become more and more mature in recent years, and the new projects are popular, plus there is rare supply of projects on top of urban railway, besides LOHAS Park phase 12 is located on top of the shopping mall showing full of attraction, so it is expected that the bidding response of the phase 12 will be enthusiastic, with the estimated floor area sq ft land price at about HKD5000 and the valuation of about HKD4.8 billion.
It has a better landscape than phase 11.
The Executive Director and Corporate Development Director (valuation and property management) of Pu Jin Group, Cheong Shing-dium expresses, the number of letters of intent is within expectation, and projects from MTR and authority are higher attractive to developers under unstable market since they share the market risk and have higher safety factor, but he believes that the current bids of developers would not be too aggressive. Cheong Shing-dium predicts, the floor area sq ft land price after land premium is between HKD6000 and HKD7000, with the valuation of between HKD5.77 billion and HKD6.73 billion.
The Managing Director of Wang Leung Consulting and Evaluation, Cheong Kiu-Chor believes, the landscape of the project is better than that of phase 11, and the land price is lower under the current market conditions, so it is believed the above factors make the application or the number of bids to be ideal. He points out that, the company has lowered the project valuation in earlier to land price of HKD7,000-8,000 per sq ft and valuation of about HKD6.73-7.69 billion including the land premium, dividend and so on.
The Executive Director and Valuation and Consultation Department Director of Knight Frank LLP, Lam Ho-man expresses, land sales have been difficult in recent years due to social movements and other factors, and projects from MTR and authority are attractive. Many developers have projects in the district and are full of sales experience, but it is estimated major parties are medium-sized and large-scale developers also some will form consortiums to share the development risk since the development scale is large.
Lam Ho-man estimates that, in terms of the floor area land price (including the amount of the land premium), it is about HKD5500-6500 per sq ft (about HKD5.3-6.2 billion), and the sq ft price of residential part will start from HKD16,000 after the completion.
