2024-05-23 28Hse Editor
Under the new crown pneumonia epidemic, in order to attract developers to actively invest in land, reduce development risks, and avoid the re-bid of the land, MTR adjusted the bidding method earlier, and yesterday's closing bid for the Pak Shing Point ventilation building property project in Tseung Kwan O will no longer be awarded to the highest bidder. The method "determines the winner", and the developer decides the dividend ratio by himself. The new move worked. Even though the land premium price per square foot reached a new high of $3,789 in the area, and as the first MTR project to add a minimum area restriction clause, it still received a total of 9 bids yesterday. In addition to the "appeal" of the real estate market, many small and medium-sized real estate developers have also made a move because the investment amount is not high, and the response is satisfactory. ◆reporter Yan Lunle
The Pak Shing Kok Ventilation Building Property Project is located on Chiu Shun Road, Tseung Kwan O, near the junction of Wan Wan Avenue. 36 expressions of interest were received earlier. The site area of the project is about 48,000 square feet, and the upper limit of the residential floor space that can be built is about 290,692 square feet. Based on comprehensive market information, the consortiums that won the bid yesterday include: Cheung Kong, SHKP, Wheelock Properties, Xinzhi, Jianhao Properties, K. Wah, Capital Strategies, etc. New World also partnered with China Merchants Land to win the bid.
Build 550 units with a minimum area of 280 square feet
It is worth noting that the project is the first MTR project to follow the government’s entry into the minimum area restriction clause. It will provide about 550 units in the future, all with an area of at least 280 square feet, but many developers think that the impact will not be significant. After winning the bid yesterday, Kenneth Real Estate Executive Director Lin Yihua said that it is expected that the limited square foot clause should have little impact on the price. He Weijin, senior manager of property development at Wheelock Properties, also believes that the limited square foot clause has no impact on the price. It is expected that small and medium-sized units will be developed in the future. He pointed out that the advantage of the project is that it is close to the subway and has convenient transportation.
The land premium price per square foot is expected to be 3789 yuan
According to earlier sources, the land premium for the Pak Shing Kok project amounted to approximately RMB 1,101.37 million, or approximately RMB 3,789 per square foot. Looking through the information, the adjacent Tseung Kwan O LOHAS Park project, the last phase (Phase 13) launched in September 2020, the land premium price per square foot is as high as 3,600 yuan, which is the highest record for the land price per square foot in the previous area, but Compared with this project, it is about 5.3% higher. In other words, the project has become the most expensive site in the Tseung Kwan O area in recent years.
Although the amount of land premium is not low, the project still received 9 bids, and the response was very satisfactory. Also taking the 13th issue of Sunrise Cannes City as an example, as the last issue of the entire series, 9 bids were also received when the bidding closed in October 2020. Lin Zibin, director of Midland Surveyors, said yesterday that the project's bidding situation was in line with expectations, regardless of the high participation of medium- and large-scale developers and consortia. Due to the active demand for boarding and changing flats in the area, the project just caters to the needs of "small families".
The response to the tender this time was satisfactory, and some people in the industry believe that it may be due to the MTR's adjustment of the tender terms. Different from the "buy it now" price, whoever gets the highest price, and the fixed dividend model in recent years, the news indicates that this trip will developBusinesses must make recommendations to MTR on the proportion of dividends, and dividends will be the biggest factor in determining the winning bidder. In addition, the developer has to pay an upfront fee of about $50 million.
"Testing the water temperature" for the Tung Chung Liu standard project
Industry insiders pointed out that last year, the Tung Chung Traction and Distribution Station project passed the bid because the land premium for the project was relatively expensive, and because the site is just above the tunnel of the Tung Chung railway line, there are certain technical difficulties in piling, and there are potential settlement problems, which makes the construction difficult. One of the reasons for the failure of the project. This time, the Pak Shing Kok project also faced higher construction difficulties, including the construction of residential buildings without affecting the operation of the existing MTR facilities. In addition, the recent severe epidemic has increased investment risks, so the project will not be approved by the highest bidder, but will use the dividend distribution method to determine the winning bidder. It is not only to avoid bid failure, but also to increase the developer's interest in entering the bid, allowing development. Businesses have more room to assess development risks.
In fact, for the MTR, after the Tai Wai Station project was tendered in 2014, most of the tenders used fixed dividends to ensure profits and reduce risks. In an earlier interview with the media, Mr. Tang Chi-fai, director of property and international business of MTR, also made it clear that when the Tung Chung Traction and Distribution Station project is re-launched in the future, the tendering method will be reviewed in light of market conditions. The industry believes that the tender for the Yum Shing Point project is a bit of a "test of the water temperature", and it is ready for the re-launch of the larger Tung Chung Traction and Distribution Station project, which will provide 1,600 units in the future.
Tseung Kwan O Pak Shing Kok Ventilation Building Project Small File
Buildable floor area 290,692 square feet
It is expected to provide 550 units
The land premium is about 1.101 billion yuan
Land premium of $3,789 per square foot
Market valuation is about 1.6 billion to 2.3 billion yuan
Estimated land price per square foot is 5,500 to 8,000 yuan
Main bidding terms 1. The upfront cost is 50 million yuan
2. The developer decides the dividend ratio at his own discretion
3. All units are not less than 280 square feet
The winning consortiums are Cheung Kong, SHKP, Wheelock Properties, Sino Land, Jianhao Properties, K. Wah, Capital Strategy, New World Partners with China Merchants Land, etc.
Watchmaking: reporter Yan Lunle
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