2024-05-08 28Hse Editor
The outlook for the property market is not clear, but urban land purchases are rare, which still attracts many developers. The URA's To Kwa Wan Wing Kwong Street/Sung On Street project was tendered yesterday, providing 278,600 square feet and is expected to provide 560 units. Based on market news, the project finally received 7 tenders, mainly from Hong Kong real estate developers, including SHKP, Cheung Kong, Henderson Land, etc. Among them, Cheung Kong and Henderson Land have won bids for other URA redevelopment projects in To Kwa Wan in recent years. Due to the synergistic effect, the bidders have been very popular. ◆reporter Yan Lunle
The URA announced that it received seven tenders yesterday for its To Kwa Wan Wing Kwong Street/Sung On Street development project. Based on comprehensive market information, the winning consortiums include Emperor International, Great Eagle, Henderson Land, Wheelock Properties, SHKP and Cheung Kong. Sinochem also partnered with China Merchants Land to win the bid. Looking through the information, the project received 31 letters of intent at the beginning of August, and the URA invited all 31 developers and consortia to bid for the project at the beginning of last month.
Developers: Interest rate hikes have been considered
Emperor International Property Manager Cai Hongji said that the cycle and rhythm of interest rate hikes will affect valuations, and the group's bids are expected to be related to unstable factors. However, he believes that this project is the land with the most sea views in the entire To Kwa Wan community development of the URA, and the development scale is moderate, so it was awarded the bid. He also believes that due to the rigid demand for land in the urban area, and the mature development of the To Kwa Wan District, the project can also benefit from the Tuen Ma Line. If the bid is successful, it will mainly develop small and medium-sized units.
The Wing Kwong Street/Shung On Street development project covers an area of about 30,957 square feet and has a total floor area of about 278,615 square feet. The residential part of the project provides about 230,000 square feet and is expected to provide 560 units; the base commercial and retail podium level provides about 46,000 square feet. According to preliminary market estimates, the land value is about 2.65 billion to 3.62 billion yuan, and the land price per square foot is about 9,500 to 13,000 yuan.
Continue to use the bidding upfront fee model
According to the source, the bidding terms stated that when the sales revenue exceeds 6 billion yuan, the winning consortium will pay dividends to the URA. The project continues to use the pre-bidding fee model, and the developer must propose a one-off land price, and the one with the highest price will win the game. The mall part is held by the developer and the URA for the first five years. The winning consortium will hold about 70% of the mall's interest, while the URA will hold 30%, which can be sold after five years. There are restrictions on the size of residential units in the project. The saleable area must not be less than 300 square feet, and half of the units must be less than 480 square feet.
It is understood that the URA in To Kwa Wan District has tendered 3 redevelopment projects in the past year. Among them, the Bailey Street/Rongguang Street project won by Henderson in September last year (later joined the Empire Group and Hysan Xingye for joint venture development) was priced at 8.189 billion yuan, and the land price per square foot was 11,414 yuan. In December last year, Kerry Properties won the bid for the Hung Fook Street/Yin Han Street project with a price of 5.5878 billion yuan, and the land price per square foot was 12,591 yuan. By March of this year, Cheung Kong had bid for the "four-in-one" project of Hung Fook Street, Kai Ming Street and Wing Kwong Street for HK$5.996 billion, with a land price of HK$11,382 per square foot.
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