2024-04-23 28Hse Editor
The price per square foot is 54,100 square feet, nearly 40%
At a sensitive moment when Sino-U.S. relations continued to be tense, the US consulate had previously tendered for the sale of the dormitory house at No. 37 Shoushan Village Road in the Southern District. It was finally sold for 2.566 billion yuan, which was close to the market's lower limit. The price per square foot was higher than the price of the house sold 2 years ago. The land at No. 39 Shoushan Village Road is nearly 40% lower. Hang Lung Properties confirmed the news of winning the bid and expressed that it is very happy to have successfully bid for the land. It believes that the price is reasonable and will be rebuilt into a number of independent luxury mansions. It is expected to be completed in 2024 with a total investment of about 4 billion yuan.
■reporter Li Zitian
Hang Lung Properties stated that this prestigious land is rare in the market and believes that the price is reasonable, but the second purchase is a vote of confidence in the future of Hong Kong. This land will be rebuilt into a number of independent luxury houses, which are expected to be completed in 2024, with a total investment of about 4 billion yuan. The market estimated earlier that the price per square foot of the land was between 45,000 and 100,000 yuan, and the property valuation was between 2.1 billion and 4.7 billion yuan. The transaction price this time was only the lower limit of market expectations.
Vote for confidence, vote for 4 billion reconstruction
CB Richard Ellis pointed out that the land is currently 6 low-density residential properties, providing 26 units and 52 parking spaces, and an outdoor swimming pool. It is sold in the form of auspicious, and there is no "sale and leaseback" clause. The land area is about 94,796 square feet, and the redevelopment area is about 47,397 square feet. This public tender was participated by multiple consortia and was finally sold for 2.566 billion yuan, which is equivalent to 54,138 HKD per square foot of floor land. According to data, the United States government purchased the land in 1948, and it has been used as the dormitory of the United States Consulate in Hong Kong.
Wang Guowei, senior director of the Hong Kong Capital Markets Department of CB Richard Ellis, said that the sale of the project attracted the attention of many local and international investors. in the marketUnder the volatility, the transaction price was in line with market expectations, but the second largest transaction also reflected that investors remained confident in the market outlook.
Looking at the information, compared with China Resources Land's purchase of No. 39 Shoushan Village Road next to it for 5.9 billion HKD two years ago, the floor price per square foot was 85,847 HKD at that time. This time the price per square foot of the 37th floor fell by nearly 40%. If the plot ratio is increased to 0.75 times after the land premium and the buildable floor area is increased to 71,097 square feet, the floor price per square foot is only about 36,000 yuan, which is more than 50% lower than that of No. 39.
The industry says that market conditions will inevitably offer conservative bids
Lin Zibin, director of Midland Surveyors, explained that China Resources Land’s purchase price hit a record high in the same district that year. The current market conditions are difficult to compare with then, coupled with political factors, the investment period and the longer sales period after the completion of the project. It is understandable that market bids are conservative. Lin Zibin said that the floor price of the project is more than 54,000 HKD per square foot, which is still higher than the market's lower limit of 45,000 yuan, which is within the range of market expectations.
In fact, the news that the US government had sold consulate dormitories in Hong Kong by tender came at a sensitive stage of tension between China and the United States. At that time, the US government stated that it would cancel the special treatment granted to Hong Kong in response to Hong Kong’s implementation of the new national security law. The U.S. government has responded that relevant departments will regularly review overseas properties as part of the reinvestment plan. The sale of the Shoushan Village Road property is purely a "commercial decision." The U.S. government is also stepping up investment in other assets in Hong Kong, including the US headquarters in Hong Kong. The consulate office building.
As for the "real buyer" Hang Lung Properties Chairman Chen Qizong has always claimed that he "embrace the bear market" to buy land, because the bear market has more opportunities. Earlier in July, when asked by reporters whether it was time to pick up bargains, he said that it was still too early to embrace the bear market. It did not mean that the group would continue to look for good opportunities.
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