( By Yan Lunle)
According to statistics of land sales in the past four financial years by this news, government had sold 95 lots of land, and Cheung Kong as Hong Kong leading land agent had bought 9 lots of them in the first three years, but this company stopped purchasing in last financial year, not even any railway project or URA project, which was rare. Coincidentally, another large developer New World had never won any government land in these four years. In fact, large developers were obviously more conservative on land purchasing in last financial year, and top six land agents offered land price over HKD 10 billion less than small-medium developers supplied.
IMF warned of property market down risk.
Six large land agents immediately pursued lands since 2010 when government largely increasing land supply, who won nearly all of the medium and large lands beating small-medium financial groups, but situation reversed since last year. According to this news' statistics, in 2013-14 financial year, small-medium land agents won 24 lands by HKD 28.078 billion, taking 62.4% of the total amount, which showed obviously rising comparing with little above 20% in 2011-12 financial year. Insider analyzed, property market trend is unclear, making large financial groups worrying the sales after purchase, so they offered lower price and failed on bidding. In fact, IMF had warned three times of Hong Kong property market down risk since this year, and appealed Hong Kong government preparing to cancel strict measures.
Take Cheung Kong among the large developers as example, according to data, the last time Cheung Kong won land bidding was back to November 2012, when the company purchased Choi Sha Street land in Lok Wo Sha Ma On Shan at HKD 2.901 billion, which means Cheung Kong hasn't bought any land for up to one year and a half.
In the past, Cheung Kong was always like to purchase government lands and railway station on top projects, for example, except Lanshan in Fung Yuen Tai Po, the other three among the four new projects they planed to launch this year are railway project or URA project, including City Point (1,717 units) in Tsuen Wan West Station 7th, Hemera (1,648 units) of LOHAS Park 3 from MTR, and Trinity Towers (402 units) in Lai Chi Kok Road developed with URA, which shows Cheung Kong property sales relies much on government land supply.
While another large developer New World was also conservative on land pricing, who had never won any government land for the past four years. However, besides taking in government's land bidding, New World had stocked land from diversified sources like old property rebuilding, land premium housing and so on, so they have enough land stock currently. But there were more difficulties in old property rebuilding and land premium housing in recent years, so they may hurry and stock more land by bidding in future.
Mainland real estate company becomes new power in land market.
As local developers become more conservative, mainland developers came to Hong Kong for purchasing land in succession, with some mainland real estate companies won totally 5 lots of Hong Kong land at land amount up to HKD 7.3 billion in last financial year, which was the peak season, making them a new power in land market.
There into, Poly bought Kai Tak land by HKD 3.92 billion last year; Shimao Property, Mingfa Group and so on also cooperated with EMPEROR IHL to purchase Shouson Hill Road West land by HKD 2.70808 billion for luxury property developing. While Vanke, KWG Property and so on also took part in land bidding for many times, and Vanke even had cooperated with Wing Tai Properties Limited to bid for Kai Tak land, although they failed, but this new power must not be ignored.
