HONG KONG, Dec. 15, 2011 /PRNewswire-Asia/ -- Vincent Cheung Kiu-cho,Cushman & Wakefield's National Director for Valuation and Advisory Services said, "The sites in Hung Luen Road in Hung Hom Bay and Mui Wo for sale by tender, which closes tomorrow, are designated for hotel and residential uses respectively. With global economic uncertainties and the new government restrictive measures, competition will be less keen and the developers are quite likely to remain cautious when bidding for the lands. Our valuations of the two sites are HK$4.17 billion and HK$173 million respectively."
Cheung further points out that the government restrictive measures have hit the residential market recently, and therefore expects the market sentiment on Hung Hom Bay site would be better than the site in Mui Wo. The permissible GFA of the Hung Hom site is approximately 672.7 thousand sq. ft. According to the conditions of sale, 556 thousand sq. ft. are developable for hotel use, whilst the remaining areas are retained for Government quarters and public transport interchange. According to the recent transactions of 3- and 4-star hotels in the district, the value of each hotel room in Tsimshatsui ranges between HK$6.4 million and HK$7.8 million. And Cheung expects a high-class hotel is likely to be developed in the site. Considering the above two factors, the average value of approximately HK$7,400 psf is reasonable (the areas of Government quarters and public transport interchange is not being taken into account).
The site that comes with stipulation of number of flats in Mui Wo is located at Lot 726in DD 4, Mui Wo. The site area is approximately 24,300 sq. ft. with a maximum buildable area of 49,400 sq. ft. and the number of flats is limited to a maximum 50. Cheung remarks that Tung Chung is deemed the new town centre of Lantau Island, thanks to the MTR connection. Two connected plots in Cheung Sha, Lantau Island were recently acquired by Swire Properties with HK$360 million, or HK$5,542 and HK$5,538 psf. But on the other hand, Mui Wo is an old town with less transport facilities and a lower degree of privacy and weaker environment than Cheung Sha, therefore Cheung estimates that the transaction price will be far lower than the two plots in Cheung Sha, at HK$3,500 psf.
Sale of land by tender and Cushman & Wakefield estimation:
| KIL 11205 Junction of Hung Luen Road and Wa Shun Street, Hung Hom Bay Reclamation, Kowloon |
Lot 726 in DD 4, Mui Wo | |
| User | Hotel | Residential and Commercial |
| Site Area (sq. ft.) | Approx. 168,200 | Approx. 24,300 |
| Total GFA (sq. ft.) | Approx. 672,700 | Approx. 49,400 |
| Cushman & Wakefield Estimation (Land Value) | HK$4.17 billion | HK$173 million |
| Cushman & Wakefield Estimated Unit Sales Price | HK$7,400 (less Government quarters and public transport facilities) | HK$3,500 |
About Cushman & Wakefield
Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 234 offices in 61 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at: www.cushmanwakefield.com.
