The prospects of the property market are uncertain, and developers are willing to pay less for land prices
Last quarter, the land premium income was only 590 million yuan, a quarterly decline of 80%, which is the least in the past three years. , Also fell 40% year-on-year.
Last quarter revenue was only 590 million, down 80% quarter-to-quarter
According to the Lands Department’s announcement, during the October-December 2019 quarter, eight contract amendments and two land exchange cases were recorded, as well as four other technical contract amendments that did not involve the amount of land premium. Compared with the 3.82 billion yuan in the third quarter of last year, it fell by 84% quarter-to-quarter. It was also the least since the third quarter of 2016 in the past three years.
As a matter of fact, in the past two months, the market has hardly recorded any cases of land premium supplementation, and only some of them are technical amendments. This reflects the current uncertain outlook of the property market and the low desire of developers to make up land premiums.
Nanfeng Saigon South Side premium 580 million
In addition, Nan Fung or related parties had previously paid a total of 581 million yuan for a 1.3 hectare land replenishment site in the southern edge of Sai Kung, which will be developed as “residential (type C)”. Four three-story high-rise residential buildings with a total floor area of approximately 97,000 square feet. Based on this calculation, the land replenishment price per square foot is nearly 6,000 yuan, which is similar to the land replenishment price of New World (00017) in 2011 in the same district for the Tai Po Tsai project (currently proud), which is 6,148 yuan per foot.
During the quarter, three other sites in Chai Wan, Tsing Yi and Sha Tin were awarded to the Hong Kong Housing Authority for public housing development through private agreements.
In summary, last year’s total land premium income of 15.84 billion yuan was recorded, which was a year-on-year decrease of 40% from 26.15 billion yuan in 2018, which was the least in the past three years. Earlier, the Secretary for Development, Mr Wong Wai Lun, also pointed out that the land supply from private development and reconstruction projects this year was only 2,600 units, which was lower than the estimated 3,860 units at the beginning of the year.
As for the relatively large land premium cases last year, including SHKP (00016) and the 2.1 million yuan land premium for the Shek Wu Wai Project in Yuen Long, 300 houses will be built, and Changshi (01113) will also be Dongyuan Street in Yau Tong For the project, the land premium was 2.21 billion yuan.