Real estate market
Written by: Cai Weinan
2020-12-29 14:06
Last update date: 2020-12-29 14:22
Affected by the new crown pneumonia epidemic, Hong Kong's economy will reverse in all directions in 2020, and the government's land sales revenue will also lag behind.
This year (January to December) the government launched a total of 13 official land, of which two commercial land were unsuccessful. The 11 official land successfully approved also only contributed 36.897 billion yuan to the warehouse, which is about 72% year-on-year. , That is, the total income from land sales for the whole year is not as good as last year's commercial land on the West Kowloon High Speed Rail Station.
The annual income from land sales is less than a piece of West Kowloon
With reference to the land sales revenue in 2019 and 2020, there is a difference between "heaven and earth".
According to information from the Lands Department, last year was the peak of land sales. A total of 16 plots were launched. Although there were 3 unsuccessful bids, the 13 official plots successfully sold involved a total of 131.122 billion yuan, a record high.
Among them, the SHKP (016) bid for the commercial land king over the West Kowloon High Speed Rail Station in November last year alone involved 42.232 billion yuan, accounting for 30% of the overall revenue.
In addition, the six Kai Tak plots sold last year were sold at a transaction price of about 9.8 billion to 15.9 billion yuan, each of which is very important and easily becomes the king of tens of billions of land.
The total price of 11 official land sold this year is not as good as a commercial land above the West Kowloon High Speed Rail Station.
(Provided by the developer)
Many non-core areas of the land lack the "Land King" series
However, stepping into 2020, the 11 Crown Lands successfully sold throughout the year, excluding the residential land 2, 4, 6 and 8 of Man Fai Road on the Peak, which was launched at the end of the year and was approved for $12 billion, and the remaining 10 land Mainly located in non-core areas, the transaction price ranged from 85.9 million to 5.6 billion yuan, reflecting that only one piece of land reached the level of "10 billion land kings" throughout the year.
The proportion of wholly Chinese-owned land acquisition increased by 22%
The background of the consortium is carefully divided. Among the 11 land sold, Hong Kong-funded and Chinese-funded developers accounted for 6 and 5 respectively, which accounted for 55% and 45% respectively. There were zero cases of land acquisition by Sino-Hong Kong joint ventures.
Compared with the 13 official land sold in 2019, Hong Kong-owned and Chinese-funded developers occupy 6 (46%) and 3 (23%) land respectively, and 4 (31%) Sino-Hong Kong joint ventures. .
In addition, among the 11 official land parcels sold, the transaction price of 4 residential land parcels was only about 500 million yuan or less. They were small in scale and distributed in places such as Mong Kok, Sai Kung and Tai Po. Therefore, many of the winning consortia this year were small Developers, building materials dealers and engineering companies acquire land with sole proprietorship.
The proportion of ``local ginger'' reduced by the four leading players is only a long-term gain
At the same time, only Cheung Kong (1113) of the four major developers this year has made gains, acquiring the first land on Anderson Road in Kwun Tong for 4.951 billion yuan.
The remaining three major developers including Xindi (016), Henderson (012) and New World (017) have not successfully absorbed land reserves from the official land market.
Income from land sales next year will depend on Central and Peak Land
Zhang Qiaochu, managing director of Hongliang Consulting and Evaluation, said that the revenue from land sales for the whole year of 2020 has dropped sharply, mainly because the scale of the official land launched this year is relatively small, unlike the commercial land king on the West Kowloon high-speed rail station launched last year. The land in Kai Tak is tens of billions of dollars, so the developer has the ability to make a sole proprietorship. There was no land acquisition by joint venture during the year.
Zhang Qiaochu also pointed out that the two commercial land bids recorded in Kai Tak and Tung Chung during the year were also one of the reasons that dragged down the land sales revenue.
The valuation caps of the two sites are as high as 5 billion and 10.4 billion respectively.
Regarding the trend of land sales next year, he believes that there will be less and less land available for sale on the surface of the land sold. In 2021, it will rely heavily on the Central Waterfront Commercial Land King and another relatively small residential land on Man Fai Road on the Peak.
If the market conditions are unsatisfactory, and one of the auctions is out of order, it will seriously drag down the land sales income and the warehouse income.
Surveyor: expect more domestic properties to bid for land in Hong Kong
Zhang Shengdian, Executive Director of Pu Jin and Director of Corporate Development (Valuation and Property Management), believes that in the past, many mainland real estate developments in Hong Kong tended to cooperate with local developers. However, accumulating years of experience, individual developers have sufficient strength and Technology develops the land on its own, and believes that in the future, domestic housing will have greater conditions to bid for the land solely.
In addition, he also believes that due to the abundant global capital and the introduction of the development direction of the Greater Bay Area, more mainland real estate companies are expected to develop in Hong Kong.
China Overseas Land & Investment Co., Ltd. grabs RMB 4.2 billion for residential land in District 4E, Kai Tak, at a price of RMB 13,000 per square foot. High valuation ceiling of 4%
Agile Chen family members won the bid for residential land in Dapu Jiao section for 451 million yuan, which is called private investment
Vanke consortium seizes residential land on Ma Wo Road in Tai Po for 3.7 billion yuan
Chinachem Group seizes residential land in Ho Chung, Sai Kung for more than 530 million yuan
China Mobile wins 8 companies 5.6 billion yuan to invest in Fotan Industrial Land
Dah Chong Group overwhelmed 18 consortium to acquire residential land in Ap Lei Chau for 1.332 billion yuan
Land Sale Land Supply Finance-Lands Department, Lands Department Cheung Kong Group