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Incident Mount Anderson may trigger land premium downward adjustment
2023-6-10
The sale of Chinachem group's new project Mount Anderson, which is located at Anderson Road in Kwun Tong, recorded a worse than expectant result recently. Under this scenario, the developer had no choices but to withdraw the sales promotion jobs and announced that the original site will be converted to an elderly centre. To put it simply, this incident seemed to have been resolved satisfactorily, but from another point of view, it is hard for the developer to gain back $3.1 billion land price and 1 billion construction fees.
Since the Lands Department has cancelled its  pre-sale agreement, the developer will not be able to restart the sales jobs soon. Starting from submitting the tender, the developer seemed not to have an alternative plan for the failure sales of this project. Actually, nobody could predict only three units being sold after the opening sale of this project.
Over the past three decades, it is rarely to have a similar event like this. Due to the suddenness of this incident, the developer's new plan seems only be a preliminary draft without in-depth research.
Cheung Kong purchased a plot of residential land in the same district in early 2020. The land price was only $4,564 per square feet (psf.). In contrast, the average price sold by the lands department in the same district in recent years was about $12000 psf. Therefore, prospective buyers of this district will only focus on the new projects launched by Cheung Kong later. Subsequently, that same district's developers will have no choice but to cut the price to launch the new projects in future to enhance its competitive advantage.
Ever since the exposure of the incident about Chinachem Group's Mount Anderson, other local developers will be extremely cautious for submitting the tender offer to the Government projects in future. As anticipation, low-price offer will become a new normal. Under such circumstances, it is going to be harder for the Government to sell lands at market price and the land premium incomes will certainly decrease that is inevitable.
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A mall in Tsim Sha Tsui has rented three floors to a dining and entertainment group for about HK$7 million per month - the biggest lease by size and value since the pandemic ended, according to a report. The 80,000-square-foot space at Silvercord mall will be transformed into an anime-themed store featuring dining, retail and a play area, the Hong Kong Economic Times reported. The site may include characters from Demon Slayer and One Piece, the report said. But the lessee has not been revealed. The site was previously occupied by Hennes & Mauritz AB. |
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5. Service industry reported double-digit increases 2023-06-14 10:25:43 |
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The service industry reported double-digit increases in almost all segments in the first quarter of 2023 compared to the same period last year according to Hong Kong’s Census and Statistics Department (C&SD). Accommodation services business receipts went up by 84.5%, food services up by 81.7%, banking by 30.6%, retail by 24.1%, and administrative and support services by 21.9%. On the other hand, double-digit decreases were recorded in business receipts of the transportation (-18.7%), import/export trade (-17.5%) and courier (-12.5%) industries during the same period. |
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6. 孟晚舟沽維港灣複式賺1129萬 2023-06-16 01:03:02 |
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華為副董事長兼首席財務官孟晚舟，於上月底沽售大角嘴維港灣3座41 及42樓B室複式戶，面積1407方呎，作價2999萬，平呎價21230元。 孟晚舟於2013年12月以1870萬購入，持貨9年帳面獲利1129萬，物業升值60%，新買家為孫振寧(Sun Zhenning)。 |
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