Residential area No. 1 in Area 4C of Kai Tak Runway Area was approved at the end of last month at a price of RMB 12.9 billion, which was lower than the price of 8% of the adjacent land
The government announced the rest of the list price, the sub-price still reached 12.5 billion yuan, the price of each land was 17,500 yuan, only 3% lower than the winning price.
The No. 1 plot of Zone 4C is part of the residential plot that was first approved after the revision of the Kai Tak Commercial Site by the Gaoyin Group. The Lands Department announced last month that the joint venture between China Resources Land (01109) and Poly Real Estate (00119) won $12.9 billion. The land price per floor was 18,080 yuan, which was 8% lower than the price of neighboring land. The market is concerned about the remaining developers. Will the bid be more conservative?
The remaining 5 consortia entered the standard 100 to 12.5 billion
According to the Lands Department’s announcement yesterday, the price of the remaining five consortiums ranged from $9.888 billion to $12.5 billion. The estimated floor price of each building was between $13,892 and $17,500. Compared with the bid price, the price is 3.2% to 23% lower. The sub-price is only 400 million yuan or 3.2% away from the bid price, which reflects that the bids of the developers in the market are consistent, and the gap is not too large.
Bid median floor price 15538
As seen from the developer’s bidding, the consortium’s bid is slightly conservative. For example, if the median price of the inbound price is 15,518 yuan per square meter, the median bid price of the consortium will be 17,888. Yuan, which is 13% lower, and overall, the land price has not yet been significantly adjusted.
The Chairman of the Group, Mr Leung Chi-kin, has responded that the short-term developer’s offer is slightly lower. It is not surprising that the organization’s consortium has only entered the price of the consortium.