Hong Kong Wen Wei Po (By Yan Lunle)
"Big Landlord in LOHAS Park" Wheelock Properties bagged more. MTR yesterday announced that Wheelock won the Phase 12 of LOHAS Park in Tsueng Kwan. According to the previous data, the project can build a floor area of about 961,000 sq ft, providing 1,217-2,000 units, and the price after land premium is about HKD2.725 billion, with the sq ft price after land premium at about HKD2,835.
The application for LOHAS Park Phase 12 closed the day before yesterday and received nine tenders, including not only powerful competitors of Cheung Kong, SHKP, and Henderson but also joint-ventured consortiums of Empire Group with New World, Sino with K.Wah, and China Merchants Group with THE HONGKONG LAND COMPANY LTD. The tender opening of the project started rapidly yesterday, and finally, the "hot" Wheelock won the right of development.
Going through the data, Wheelock has rich development experience in the LOHAS Park projects. In recent years, it has developed Phase 5 (MALIBU), Phase 7 (MONTARA), and Phase 9 (MARINI). The sales were entirely satisfactory, so it is estimated that it would go further to bid for Phase 12. And this is the fourth LOHAS Park residential site developed by the company alone. Also, it is located on the upper floor of a shopping mall like Phase 7. The company said yesterday that its LOHAS Park projects could play synergy effects between, and it is optimistic about the prospects in the district.
Leong Chi-Kin: The housing demand remains strong.
The Chairman of Wheelock Real Estate, Leong Chi-Kin, told the media yesterday that he was delighted to have won the project and that the epidemic factor had been considered in the bid. Although there are dual pressures of economic downturn and novel pneumonia epidemic, he believes the latter will not last for a long time, and the project will not be put on sale for at least three years after. He continued that the housing demand in the market remains strong, and the government has reduced the supply of private housing; also, they as a developer need to keep quick turnover.
Two thousand small and medium-sized units will be built by plan.
The Executive Director of Wheelock Properties, Woo Kwong-Yiu points out that the project will provide about 2,000 units mainly in small and medium-size, targeting to first-time buyers.
Although the epidemic has continued in recent days, developers always need to replenish land reserves due to the difficulty of buying land in recent years, plus railway projects are attractive, the Executive Director and Director of Valuation and Consultation Department of Knight Frank LLP, Lam Ho-Man expresses. He also points out that the winning developer has projects in the same district with rich sales experience, and the supporting facilities in this area are becoming mature, which is helpful for future sales and pricing. He estimates the project will build mainly small and medium-sized units, and the sq ft price will above HKD16,000 after the completion.
According to the data, the project is located on top of the "THE LOHAS" mall, south of MTR LOHAS Park Station, and opposite to Phase 11. The project will consist of 3 buildings with the residential floor area upper limit of 961,100 sq ft, providing 1,217-2,000 units, and the average unit area is 481 sq ft based on the most of 2,000 units.
The price of the project after the land premium is HKD2.725 billion.
The market source points out that the project is about HKD2.725 billion after land premium, and the sq ft price after land premium is about HKD2,835. The fixing participation in profit is 15% or more. The developer must bid again at a "fixed price" above HKD350 million. The one that offers the highest price will obtain. The participation in profit and the bid auction at a fixed price will become the key to winning the bid.