Inside the Great Wall:Hong Kong/China Property Daily
Emerging risks seen in the land market after 50% increase in land cost
Industry participants commented that the current risk resulting from the highland cost is even higher than in 2014. They said developers need to maintainthe market share and hence more M&A and cooperation on projectdevelopment will be expected. In addition, there is a 3-6-month lagging effect.
As the property market has been cooling down since April, it is likely the landmarket will cool down in the third quarter of the year. Moreover, data fromCentaline showed the average land cost of the 50 leading developers hadincreased by 48.4% YoY as of May 25 in this year so far. (Hexun)
Tightening measures in Hefei have reportedly been approved
The media reported that the local government of Hefei approved tighteningmeasures on house purchase restrictions and mortgage policies. Thesemeasures will be announced in June. (CFI)
Tongzhou announces provisional restrictive measures on local hukou
The local government of Tongzhou District, Beijing, announced eightprovisional restrictive measures on hukou for the District. One of these is thatnon-residential properties, including retail and commercial properties, withinthe District are not allowed to have hukou settlement, and applications of nonimmediatefamily members for hukou transfer to Tongzhou will be suspended.
As a result, the population control of as well as hukou management of the noncoreregion of Beijing will be implemented. (CFI)Sino Land launches Commune Modern at ASP of HK$9,931psfRight after obtaining the presale consent for its Fanling project CommuneModern, Sino Land (0083.HK) released the price list for the project on 28 May2016. 60 units were priced at HK$9,931psf after discounts. The cheapest unitcan be bought for HK$3.285m and one-bedroom units are all priced belowHK$4m. Compared to neighboring first-hand projects in the past three years,Mount One and Green Code’s first-hand prices are HK$9,712psf andHK$9,407psf respectively, so Sino’s new launch is 2.3-5.6% more expensive.
The project will supply 296 units in total with sizes ranging from 235sf to750sf, and they are designed in studio, one-bedroom, two-bedroom and threebedroomlayouts. (Sing Tao Daily & EPRC)
121 primary units sold over the weekend, -30% WoW
Over the weekend, developers altogether sold 121 units, which was 30% lessthan the previous week. For Savannah, some 45 units were sold against 80units being on offer, indicating a take-up rate of 56% for its fourth sale batch.
38 units of Bloomsway were also sold. Other primary transactions includeseven units of the Mediterranean, two units of the Zutten and two units ofEltanin Square Mile. (Sing Tao)