China / Hong Kong Monthly Chart Book HK Property Refer to important disclosures at the end of this report DBS Group Research . Equity 14 January 2019 Local developers dominated the land HSI: 26,667 market • Kai Tak is the key source of land supply ANALYST Jeff YAU CFA, +852 3668 4180 • MTRC stepping up project launches
[email protected] • Local developers dominated the land market Ian CHUI +852 3668 4174 Kai Tak is the key source of land supply. In 2018, the government sold
[email protected] 11 residential or residential/commercial sites via public tender for HK$70.6bn. Upon completion, these projects are expected to provide Jason LAM +852 3668 4179 >5,500 residential units, of which about 74% will come from the Kai
[email protected] Tak area. After SHKP (16.HK) paid a record price for the sizeable residential/retail lot adjacent to Kai Tak MTR Station, the government released three waterfront residential sites along the runway of the old airport onto the market for tender during Nov-Dec 18. A consortium equally owned by Henderson Land (12.HK), Wheelock (20.HK), New World Development (17.HK), and Empire Group won the tender for one of the sites. The joint venture arrangement allows the consortium members to diversify their investment risk. The other two went to Chinese companies, China Overseas Land (688.HK) and Goldin Financial (530.HK). MTRC stepping up project launches. In 2H18, MTRC (66.HK) offered two projects for tender. Cheung Kong Asset Holdings (1113.HK) defeated four other developers to secure the development rights of Wong Chuk Hang Station Package 3 in Aug-18.