More than HKD 9.3 billion which above 26% than prediction upper limit; Second hand property mark up in same district is up to HKD 1 million.
(By Ngan Lun Lok, Leong Yuet Kam)
West Rail Yuen Long project bidding opened yesterday, and New Territories " Northwest large landowner" Sun Hung Kai won by HKD 9.32 billion, higher 25.6% than market prediction upper limit, and it becomes New Territories northwest king land. Sun Hung Kai claims the total invest is up to HKD 20 billion, thus market predicts the usable area sq ft price will above HKD 16 thousand. This news stimulates the whole property market in Yuen Long, and agent points the average mark up in same district is 5%, some owners even rise price by HKD 1 million, also there are owners from nearby YOHO series projects want to close their sale.
West Rail Yuen Long project bidding opened yesterday, and MTR published Sun Hung Kai won by HKD 9.32 billion, beating other five powerful financial groups. It is shock to the market, because both the sale price and e sq ft floor area land price HKD 6,275 become the highest in New Territories northwest. Reviewing the market value in the past, the highest valuation was just HKD 7.42 billion, what is means price this time is 25.6% higher than the market prediction upper limit.
It can be built on 1876 units and is at total invest HKD 20 billion.
West Rail Yuen Long project land price is reasonable, and it is located on top of West Rail major station gathering many traffic lines, plus with the scale is large, base on residential and shopping mall developing experience for many years the group plans to invest totally HKD 20billion. West Rail Yuen Long project land is 421 thousand sq ft, which can be built on floor area 1.4853 million sq ft and provides 1,876 units, according to data. Bidding terms requires Sun Hung Kai paying preliminary engineering cost HKD 170 million and the participation in profit ratio is 5%.
In fact, Sun Hung Kai is large landowner in Yuen Long. In the past many years, Sun Hung Kai has purchased many lands in New Territories northwest including many agricultural lands, finished projects YOHO series which are YOHO TOWN and YOHO Midtown, and pending YOHO 3 (Grand YOHO Development), so it is believed high price to win the land this time will be good to the pricing of YOHO 3. Besides, under developing projects in this district still have Sun Yuen Long Centre, Riva, RESIDENCE and The Beaumount which will be put on sale soon.
This news roughly estimates Sun Hung Kai owns at least lands available for 13 thousand units in Yuen Long including Tin Shui Wai, so Sun Hung Kai always is called "northwest large landowner".
They determined to win maybe in order to consolidate the domain.
Sun Hung Kai offering super high price to win the land obviously want to make sure the domain is consolidated, since Yuen Long project includes more than 100 thousand sq ft commercial part. Sun Hung Kai has actively developed shopping mall in this district recent years, profit of which will be affected by cutthroat competition if Yuen Long station is won by other developer who may develop similar shopping mall in there. So Sun Hung Kai bought it by super high price.
According to data, Sun Hung Kai's YOHO MALL on YOHO base is about 1.1 million which is the second large shopping mall in New Territories next to Sha Tin New Town Plaza. Same series Wing kei village surroundings also applies for building two shopping malls of totally 812 thousand sq ft in recent months, plus with Yuen Long base shopping mall, Sun Hung Kai owns more than 2 million sq ft shopping mall in this area. Besides, Sun Hung Kai also builds two hotels supplying 1,024 rooms there, using every sq ft to found a business empire.
The sq ft price estimated will be more than HKD 15 thousand after finish.
This won price also is out of many surveyors' prediction. Sun Hung Kai has many projects in this district, and this shopping mall part also is valuable, so Sun Hung Kai is willing to buy by high price, Cushman & Wakefield Greater China Region evaluation value advisory department director Cheong Kiu Chor analyzed. Yuen Long project cost is ideal, so it will bring indexing effect to land price in same district even in New Territories, Centaline Property surveyor Lai Kin Fai expressed.
Single developer connects its own residential projects, commercial malls by over bridge is good to residents and merchants, which also can consolidate the value of residences and shopping malls, benefiting the developer, so win-win prediction encourage Sun Hung Kai to fight for the land, Lai Kin Fai expressed. It is predicted the residence floor area usable sq ft price will be about HKD 15 thousand to HKD 16 thousand after finish. Transaction price higher than market prediction reflects developer determined to win and not spare to bid by nearly HKD 10 billion, Midland Surveyors director Lam Chi Pun expressed.
