Tuen Mun’s land price has leveled over 40% in 2 years to 4.6 billion, and Cheung Kong has won Tai Lam’s limited-square-foot land: very confident in Hong Kong
Wenwei  2022-10-06  Transaction 

The outlook for the property market is uncertain, and developers' bids for land purchases have also become "tight." The Lands Department announced yesterday that Cheung Kong has bid over 4.6 billion yuan for a residential site on the Tai Lam section of Castle Peak Road in Tuen Mun. Although it avoided the fate of the failed bid, the land price per square foot is only RMB 3,522 based on the floor area of about 1.3 million square feet, which is 5% lower than the market expectation. Land price levels go back in time to 6 years ago. Changshi said that due to certain difficulties in the construction of the land, more than 13 billion yuan will be invested in the development project even with the land price. ◆Hong Kong Wen Wei Po reporter Yan Lunle

In April this year, the “limited square foot” residential land in the Tai Lam section of Castle Peak Road, Tuen Mun, was lost. The response was not satisfactory when the bid closed last Friday. Only 5 bids were received, from Cheung Kong, Henderson Land, SHKP, Garmin and Sino-Sino. . But the project was successfully approved in the end, avoiding the fate of failing the bid again. The Lands Department announced that Cheung Kong won the bid for the project at a price of 4.601 billion yuan and a floor price of about 3,522 yuan per square foot. Previously, the market valued the land at about 4.8 billion to 7.2 billion yuan, and the land price per square foot was about 3,700 to 5,500 yuan.

A total investment of 13 billion can build 2020 units

Cheung Kong executive director Zhao Guoxiong said that the group has been actively participating in the land acquisition because of its confidence in the prospects of the Hong Kong real estate market and is very excited about the land acquisition this time. However, the land area is large, the construction was once difficult, and the number of units involved is large. It is estimated that together with the land price and development costs, the total investment is expected to exceed 13 billion yuan. He also pointed out that the transportation network and community facilities in the area will become more complete with the successive completion of neighboring projects and the development of the "Northern Metropolis".

The site covers an area of about 363,000 square feet, with a buildable floor area of about 1,306,000 square feet and can provide about 2,020 units. There is a minimum unit size limit on the site, which must be at least 280 square feet. The market estimates that small and medium-sized units will be built, mainly one-bedroom and two-bedroom, and the target customers are boarding and small family households.

It is expected to adjust the reserve price to ensure the supply

Lin Zibin, director of Midland Surveyors, pointed out that the size of the land and the investment amount were relatively large, and the bid was lost in April. In addition to the recent market conditions, developers have become more cautious in their bids. This successful auction reflects that the government adjusts the reserve price according to market changes, which can ensure the future residential supply. Zhang Qiaochu, managing director of Hongliang Consulting and Evaluation, believes that the tailoring of the land is not easy. In addition, the price level of local semi-new buildings is about 12,000 to 15,000 yuan per square foot, and the traffic in the area is still improving. Therefore, developers offer more conservative prices. .

Looking through the information, the last piece of land approved in the Tuen Mun area is the Castle Peak Road- Castle Peak Bay section in Tuen Mun District 48, which Kaisa won for 3.5 billion yuan in January 2020, with a buildable floor area of 582,800 square feet. , involving 3.5 billion yuan, and the land price per square foot is 6,005 yuan. It can be seen that the land price in the region has shrunk by 41.4% in the past two years.3%. It is worth noting that at the end of 2021, Kaisa is rumored to transfer the land to the family of "Toy King" Cai Zhiming for 3.77 billion yuan, and the land price per square foot is 6,468 yuan.

The transaction level of the land this time can be traced back to 2016, when the Castle Peak Road section of Castle Peak Road in Tuen Mun 48 and the Tai Lam section of Castle Peak Road, Tuen Mun in the New Territories were awarded respectively. Today, the Imperial series and OMA by the Sea have been completed. The land prices per square foot were RMB 4,085 and RMB 3,343 respectively.

Tuen Mun Residential Site Profile

Site Location Residential site at Castle Peak Road-Tai Lam Section, Tuen Mun (Tuen Mun Town Lot No. 561)

Site area 362,887 sq. ft.

Buildable floor area 1,306,392 square feet

Provide about 2,020 units

The winning consortium Changshi

The winning bid price was RMB 4.601 billion (RMB 3,522 per sq. ft.)

The original market value was 4.8 billion to 7.2 billion yuan (3,700 to 5,500 yuan per square foot)

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