HK Property :Yuen Long dominates near-term project launch

2H15 project launches likely to be concentrated inYuen Long. There are nine projects with 4,887 units in theYuen Long area under application for presale consent as ofJun-15. SHKP dominates supply in the near term withapplications for three projects or 2,664 units, namely GrandYOHO Development, Acappella Development (Ph1A-C) andTwin Regency. We believe the 1,114-unit Grand YOHOdevelopment would take centre stage given its easyaccessibility to both Yuen Long West Rail station and YOHOMall, which is under development and will be Yuen Long’slargest mall with 1msf in GFA comprising refurbished SunYuen Long Centre and retail arcades, YOHO Midtown andGrand YOHO.

    Two large projects at Long Ping Station. Cheung KongProperty and K.Wah-led consortium are applying for presaleconsents for Yuen Long project (YLTL 518) and Long Ping(North) Station development, respectively. These twoprojects are located within a few minutes walking distancefrom Long Ping Station (one stop after Yuen Long Station),which takes c.40 minute to travel to Central.

    Yuen Long Station site up for tender. On the supplyside, MTRC, as an agent for the government, recentlyoffered Yuen Long Station site, which provides c.1,870units in 6 residential towers with 1.36msf in GFA, fortender. Given that the project will be very marketable andthe large investment outlay, this development should holdstrong appeal to deep-pocketed local developers.