Epidemic City Sells Peak and Central Two Kings

28Hse Editor  2020-09-29 

Government: There is a bottom line, there is a reserve price to ensure that it will not sell cheap

Affected by the repeated COVID-19 pandemic and the Sino-U.S. rivalry, the business atmosphere in Hong Kong is sluggish. However, in the newly announced third quarter of the fiscal year (October-December) land sales plan, the government will still launch two biddings for tens of billions of landlords , Respectively, are the mansion land on Man Fai Road on the Peak and the central waterfront commercial site originally tendered this season. The Secretary for Development, Wong Wai-lun, explained yesterday that the postponement of the bidding for commercial properties in Central was due to the complexity of the documents in the "double envelope" tender. He denied that it was due to the economic environment and worried that the land would be sold flat and would affect the warehouse, and emphasized that the double envelope system is suitable. The land sale this time ensures that the land will not be sold at a low price. ■reporter Yan Lunle

Wong Wai-lun said yesterday that the Central Waterfront commercial site that was originally tendered this season will be postponed to the next quarter. The changes are mainly due to the fact that the land will be sold in the form of double envelopes, with relatively few arrangements. Moreover, the tender documents will be more complicated, so the government needs more time to complete the relevant work.

According to the data, the commercial land in Central is located to the north of the Statue Square, adjacent to Phase 2 of IFC, covering an area of 516,000 square feet. It will be divided into phases 3A and 3B, with a total floor area of more than 1.84 million square feet, of which about 228,000 square feet. The square foot must be used as a government facility, including the replacement of the current General Post Office, and the remaining 1.6 million square feet should be used for commercial development. Due to the rapid changes in the business environment recently, the market’s valuation of land varies, ranging from 37.1 billion HKD to 64.6 billion yuan, and the land price per square foot is about 23,000 to 40,000 yuan.

Central Commercially considers long-term contribution

It is estimated by the market that the government has delayed tendering due to the poor business environment, so as to prevent the flat sale of the land from affecting the income of the warehouse and unable to fill the fiscal deficit. Wong Wai Lun said that this time selling the Central Commercial Land will not only consider the price but emphasize the project.It is strategic and important to the accessibility of the new waterfront, so design considerations are also added. Moreover, the site involves the relocation of part of the operation of the post office and the use of the parking lot. It will take 5 to 6 years before the relocation is completed, and the entire project is expected to be completed in 10 years.

Wong Wai-lun reiterated that the double-envelope system was adopted for this land. The government has a bottom line and a reserve price in the land design and bidding price to ensure that the land will not be sold at a low price. As for the recent performance of the commercial market, he believes that the land supply plan should not be changed significantly due to short-term market fluctuations and ups and downs.

When asked whether the valuation of commercial land in Central would decline in response to the epidemic, Huang Weilun said that the government itself did not estimate the land price, emphasizing that the land is valuable and strategic. It can provide a large amount of Grade A office space and help economic development, half of which About 2.5 hectares of land is greening and public space, which is important for the design and connection of the new waterfront public space. It is not just a measure of the monetary value of the land, but the long-term contribution of the land to Hong Kong.

"Double envelope" can balance the requirements of all parties

Some people think that the double envelope system should not be used, and it is recommended to design first before bidding. Huang Weilun stated that he would not adopt it, because the current practice has been discussed for many years, and the city planning committee also has a relevant development outline. Any practice needs to be done again, and it will only be endless. He believes that the double envelope approach has been properly balanced and price is not the only consideration, it is the best practice.

In addition, the government will also launch an industrial site in Fanling in the third quarter, providing a gross floor area of approximately 20,100 square meters (216,000 square feet). Wong Wai Lun emphasized that the government will continue to increase land supply in a multi-pronged way to maintain a continuous and stable supply and respond to the needs of the public in housing, economic and social development.

Research and development use of Penny's Bay land

Wong Wai-lun was also asked yesterday about the development direction of the 60 hectares of land in Phase 2 of Penny's Bay Disney. He pointed out that due to the "Public Use and Restrictive Deeds", if you want to develop houses, you need to obtain the consent of the Disney Company. The "Outline Plan" is not planned for housing purposes. The Development Bureau, the Bureau of Commerce and Economic Affairs and the Planning Department will further discuss the long-term development of the land, emphasizing that the land is now being used as a quarantine facility and has not been wasted.

Disclaimer: All wordings and pictures which indicated 28HSE editor are the copyright of 28HSE LIMITED. Acknowledgement is required if other parts of this publication are used. The content is for reference only, does not constitute investment advice and it does not mean that 28HSE agreed the points. The area which show in the article is salable area if there is no special circumstances. The pictures is for reference also.

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