Table of Contents
Set a new record low
The Lands Department has recently announced that a residential site on Sai Shan Road, Tsing Yi was granted to Dragon Peak Development Co., Ltd., whose parent company is Grand Bright Group Holdings Co., Ltd., for HK$938.88 million. The floor price per square foot of the transaction was only HK$1,980, which was not only lower than the lower limit of market estimates, but also a significant drop of more than 50% from the lower limit of the valuation when the land was first tendered last year, setting a new low record for floor land prices in the area.
The land is Tsing Yi Town Lot No. 190, which failed to be tendered at the end of last year. The site area is approximately 66,737 square feet. If used purely for private residential purposes and calculated based on the maximum plot ratio of 7.1 times, the maximum buildable floor area is approximately 474,200 square feet, and it is estimated that approximately 800 small and medium-sized residential units can be built. Based on the transaction price, the floor land price per square foot is only HK$1,980, far lower than the market's previous estimate of HK$2,000 to HK$2,800.
Future property market expectations
Market analysis points out that the record low land prices may reflect developers' conservative expectations for the future property market, especially in the current economic environment, where residential market demand and price growth momentum are insufficient. In addition, the supporting facilities surrounding the land have yet to be improved, which may also affect its valuation. Industry insiders predict that the residential supply in the area will increase further in the future, which may put pressure on property prices.
The fact that the Jiaming Group acquired the land at a low price this time shows its confidence in the future development potential of the Tsing Yi District, and also provides an important price reference for the market. The future development trend and market response of this project will become the focus of industry attention.
