2024-04-30 28Hse Editor
Re-launch only 5 tenders, weak market conditions, conservative bids
Hong Kong has entered a cycle of interest rate hikes, and the outlook for the property market is full of uncertainties. The residential land on Castle Peak Road, Tai Lam, Tuen Mun, which was closed yesterday, may also be affected. The Lands Department announced that it had received only 5 bids, the same as when the bids passed in April. The surveyor pointed out that the outlook of the property market is still full of variables, and the supply of new properties in the area is also abundant. It is believed that developers will be more cautious in their bids, and there is still a risk of losing bids, depending on whether the government will lower the reserve price according to market conditions. The latest valuation of the project ranges from about 4.8 billion to 7.2 billion yuan, which has dropped by more than 30% compared with April.
◆reporter Yan Lunle
Based on comprehensive market information, the five developers that entered the bid yesterday are Henderson Land, SHKP, Cheung Kong, Sinotrust and Garmin. Among them, Garmin, Xinzhi and Henderson indicated that the sole proprietorship was awarded.
Jiaming: Bids such as interest rate hikes depending on market conditions
Zeng Jiamin, the project manager of Jiaming Group, said that this bid did not take into account the valuation of the last failed bid. The bid was made based on weakening market conditions, interest rate hikes and site conditions. Although this project is large in scale, the development also faces complex factors such as nearby roads. , but there are not many choices in the market, and the company has similar experience, so it entered the bidding.
The project failed to bid in April, and 5 bids were also received at that time. The winning consortiums were Henderson Land, SHKP, Cheung Kong, Xinzhi and K. Wah International. Among them, Henderson Land, SHKP, Cheung Kong and Xin Zhi have won the bid again this time, but Jia Hua chose to give up, and Jia Ming joined the "Battle Team".
According to the data, the scale of residential land on Castle Peak Road, Tai Lam, Tuen Mun is huge, covering an area of about 363,000 square feet, with a buildable floor area of about 1.306 million square feet, which can supply about 2,020 units with a minimum unit area of 280 square feet. The period ends on June 30, 2028. There are many public works facilities on the site, and the developer may need to reserve extra cost and time to deal with related issues. Among them, there are existing slopes in the northeast and in the middle. The land sale prospectus states that the buyer is responsible for its repair and maintenance.
Supply 2020 unit valuation fell 33% from April
Lin Zibin, director of Midland Surveyors, said that due to the large scale of the land and the large investment amount, and the project has passed the bid, together with the development cost, the total investment is estimated to be more than 10 billion yuan. In addition, the recent market environment and projects have appeared If the bid fails, developers are expected to be more cautious in their bids.
Zhang Jingda, a surveyor of Centaline Property, said bluntly that the current market conditions are still full of uncertainties, and the supply of new projects in the region is also abundant. It is believed that developers will be more cautious in bidding, and there is still a risk of losing bids, depending on whether the government will lower the reserve price according to market conditions. In fact, the latest market valuation of the site currently ranges from about 4.8 billion to 7.2 billion yuan, which is equivalent to a land price of 3,700 to 5,500 yuan per square foot. Compared with the valuation in April of about 7.2 billion to 9 billion yuan and about 5,500 to 6,900 yuan per square foot, the lower limit of the market valuation has dropped by about 33%.
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