2024-04-25 28Hse Editor
The epidemic has repeatedly dragged down the economy and the business environment continues to be weak
Hong Kong was affected by a series of violent demonstrations last year, and this year it was hit by the epidemic and US sanctions. The economic and business atmosphere was weak, and the price of commercial land continued to decline. Next month will enter the third fiscal quarter of the Hong Kong government (October to December). The government will announce the land sale plan for the new quarter in the next few days. The has reviewed the information. In the fiscal quarter), the tender has not been launched until last week. The market estimates that the government may postpone the tender according to market conditions. Pujin Group valued the land at only 37 billion HKD in July, down nearly 60% from the highest valuation of 92 billion HKD in February this year.
■reporter Yan Lunle
In response to the impact of the epidemic and economic downturn, the government has launched multiple rounds of relief measures that have exacerbated the fiscal deficit. The government expects that the fiscal deficit this fiscal year will significantly increase to about 300 billion yuan, and Hong Kong’s land sales accounted for a quarter of last year’s treasury revenue First, it is the largest source of income, and stable land price income will inevitably become one of the government's deficit reduction options. The most valuable Central Commercial Land King is the key to the treasury's revenue this fiscal year. However, the current epidemic is repeated and the Hong Kong economy has fallen into negative growth. The weak business atmosphere has affected the value of commercial land. If the Central Land King is launched at this time, it may not be able to sell at a good price, and it will also significantly reduce the ammunition for reducing the deficit in the future.
Hard pushing land will affect warehouse income
According to the latest "Hong Kong Real Estate Market Observation" published by Jones Lang LaSalle, the overall Grade A office rents fell by 1.7% in August. Grade A office rents in Central still had the highest decline in all districts. The rent fell 2.5% on a monthly basis due to vacancy. The rate has risen to 6%, the highest since December 2005. There are few new lease transactions in the area, and some of them are leases.Huyuan District was relocated to other office buildings to save costs.
Hong Kong's Wen Wei Po checked the information. The government originally arranged for the Central Land King to bid for this fiscal quarter, but this fiscal season has come to an end, and the Central Land King is still missing, which inevitably makes people wonder whether the tender arrangements have changed. The asked the government about the progress of the tender last week. The government did not respond positively, saying only that "as in the past, the land sale arrangement will be announced in due course." Some market participants believe that due to the sharp drop in land prices, the government may delay the launch of land to avoid the impact of the sharp drop in land prices on the warehouse.
West Kowloon Commercial Land is sold at a low valuation of 46%
According to data, this central commercial site is located to the north of the Statue Square, adjacent to Phase 2 of the IFC, covering an area of 516,000 square feet. It is divided into two phases of development 3A and 3B, with a total floor area of more than 1.84 million square feet. The government has announced that the land will be tendered in a "double envelope" type. In addition to the bid price, technical details and design will also be considered. At the end of February this year, the Pujin Group's valuation of the land reached 92 billion yuan, and the land price per square foot was 50,000 yuan, but by July it had been lowered to 37 billion yuan, and the valuation plummeted by nearly 60%.
In fact, affected by the continuous violent demonstrations last year, the business environment in Hong Kong has deteriorated sharply, and the value of commercial land has plummeted. It is obvious that the commercial land above the West Kowloon MTR station has a market valuation of about 100 billion HKD at the beginning of last year. After the violent activities intensified in June last year due to the turmoil of the amendments, surveyors have continuously lowered the valuation of the land. By November last year, the highest valuation at the time of the tender had dropped to 79.1 billion yuan, and finally SHKP paid about 42.2 billion yuan. Yuantou won, and the transaction price was 46.65% lower than the market's lowered maximum valuation of 79.1 billion yuan.
Causeway Bay commercial land is expected to debut next season
However, Leung Peihong, senior director of Huafang Consulting, believes that another valuable commercial site may be launched in the next fiscal quarter. It is located at the commercial site of Caroline Hill Road in Causeway Bay. The land was rezoned from the former headquarters of the Electrical and Mechanical Services Department and covers an area of approximately 15.9. Ten thousand square feet, with a buildable floor area of 1.076 million square feet, including a district rehabilitation center and child care center, a public parking lot with no less than 125 parking spaces, and public transportation pick-up and drop-off facilities. In addition, a minimum of 6.5 must be provided Ten thousand square feet of public open space.
Leung Peihong analyzed that with the reconstruction of the old buildings on Haywan Street and Caroline Hill Road, including the Haywan Building, Lixin Building, Lixi Building, Liyun Building, Lijia Building and Caroline Building, the lot will be rebuilt. The new scene is conducive to the value of this commercial land. He valued the land at RMB 16.1 billion to RMB 17.2 billion, and the land price per square foot was about RMB 15,000 to RMB 16,000. It is worth noting that Hysan, the big landlord of Causeway Bay, has multiple commercial projects around the land, including Hysan Place and Leighton Center.
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