Mr Kwan Pok Lam, executive director of Oceanwide International, said in an interview that the Group's large new development at Hung On Li 1, Hung Shui Kiu was well positioned to benefit from the development of the Beidu District, including its proximity to Hung Shui Kiu Station on the MTR Tuen Ma Line, which is scheduled to be built next year.
The Beidu District is expected to create 150,000 creative jobs, which will also boost demand for housing in the district. Pre-sale consents are being applied for in two phases, of which Phase 1 is expected to be put on sale as early as this quarter. In partnership with Capital Strategy, the Group is also discussing a land exchange with the Government in the Kwu Tung area, with a potential floor area of over 940,000 sq ft in the future.
Guan Bolin pointed out that Honganli No.1 project is the largest new development in the area in the past decade. It has been about 26 years since the acquisition of land, the land premium and the preparatory development, and the total investment (including the land premium) is about 4 billion to 5 billion yuan. A total of 1,025 units of 300 to 500 square feet covering one to three bedrooms, with two bedrooms accounting for 70% of the total, are being applied for pre-sale consent in two phases.
The first phase has a total of 623 lots, with a key date of 30 June 2025. Pre-sales will be approved as soon as this quarter and will be launched immediately. Pricing will be based on new offers in the same area such as #LYOS and recent launches. As for Phase 2, a total of 402 units are pending pre-sale approval. Guan Baolin pointed out that the project is designed by the British architect team who is responsible for the design of the luxury house plate and the royal brother, shaping it into a small and medium-sized luxury house plate.
In fact, with the rapid development of Hung Shui Kiu/Ha Tsuen New Development Area under the "Beidu District" concept, construction of the additional Hung Shui Kiu station on the MTR's Tuen Ma Line is expected to start next year and be completed in 2030. The station is also the starting point of the Hong Kong-Shenzhen Western Railway, which connects the development of Qianhai and further elevates it into the core business district of the New Territories North. Mr Kwan said that it now takes about 25 to 30 minutes to drive from Hung Shui Kiu to Tsim Sha Tsui and Central Financial District, and 45 minutes even by light rail or bus, which is already an hour's living cycle. Even though a number of new disk deployment queue to sell, he believes that the group project potential is huge, do not worry about being divided thin purchasing power.
He added that the group would continue to increase its land bank through the acquisition of agricultural land in the New Territories, government land investment, private land purchase and acquisition of old buildings. Investment in areas with convenient transportation was mainly considered. As the Government was developing the "North Capital District" and the Group also held three sites in the New Territories with a total area of over 1.62 million sq ft, the development of the area would be prioritized. The above three sites include a project in the Kwu Tung area, which is under discussion with the Government for land exchange under the capital strategy. The project covers an area of 269,000 sq ft and can build 941,000 sq ft of floor space. There is also a single-owned project at Lam Tei, Tuen Mun, with a gross floor area of 66,500 sq ft, and a joint venture project at Sha Kung with a gross floor area of 616,000 sq ft.
In addition, the luxury estate at 23 Po Shan Road in the West Mid-levels, in partnership with Tak Cheung Real Estate and Capital Strategy, has been taken up for occupation and is currently building a demonstration flat. The project will provide 16 units of stratified luxury homes ranging in size from 3,700 to 7,300 sq ft.
Looking ahead to Hong Kong's property market, he said that with the resumption of customs clearance with the Mainland and the rest of the world, the recovery of various industries, the economic growth of 2.7% in the first quarter and the unemployment rate falling to 3.1% would be a natural boon for the property market.
Although the US has raised interest rates ten times in a row, the banks in Hong Kong have only followed suit four times. In addition, the real interest rate in Hong Kong is still lower than that in other places, and the positive new selling situation in recent months reflects the recovery of people's confidence in buying homes. Therefore, they are not too worried about the impact of interest rates on the property market. In addition, the government's "high talent Access" program will generate housing demand. The housing price of small and medium-sized residential buildings is expected to rise by 5 to 8 percent this year, and the price of luxury homes will rise by more than 10 percent.
