Silverstein Properties, developer of the World Trade Centre towers in New York, bought a 51,416 square metre lot in Qianhai yesterday for a mixed-use project for 13.4 billion yuan (HK$17.1 billion), pushing the price of local land to a record.
This is the sixth parcel sold in six months through public tenders, raking in a total of 40.7 billion yuan for the 15 square kilometre special zone, created in 2010 to test the nation's yuan liberalisation and financial reforms.
Qianhai is now facing competition from Shanghai and 10 other special zones across the mainland.
"It's a pretty fair market price, although it is much cheaper compared with land price for office buildings in Hong Kong," said Joseph Tsang, a managing director at global property consultancy Jones Lang LaSalle in Hong Kong.
It’s a pretty fair price, although it is much cheaper compared with … Hong Kong
JOSEPH TSANG, JONES LANG LASALLE
"Qianhai is a development focus for the mainland and has a very good outlook as more financial companies move their back offices there."
The price tag of 28,113 yuan per square metre is 74 per cent higher than the 16,153 yuan per square metre paid in November last year by Shimao Property for a commercial office development and topped the 21,669 yuan per square metre by China Resources Land for a commercial site in Qianhai in August.
OK, don't believe it. Here's another clip from Forbes:
US real estate developer Silverstein Properties just bet $2.21 billion that a new China free trade zone will help the socialist country build a world class financial services hub. Silverstein is the first foreign investor to buy into the Qianhai Economic Zone in the southern Chinese city of Shenzhen where China is preparing to test out a freer flow of the yuan in and out of the country, as well as greater convertibility of foreign exchange.
Within two days of a Wednesday announcement by China’s government granting permission for the free trade zone in the southern Chinese province of Guangdong, the New York-based developer successfully bid RMB 13.4 billion ($2.21 billion) for an undeveloped site in Qianhai.
Shenzhen is the second-largest city in Guangdong, and its position across the border from Hong Kong, has long made it a favorite for manufacturers. Now the prospect of the new free trade zone, and its potentially greater freedoms, including market-driven bank deposit rates, and derivatives trading, has piqued the interest of speculators.
gman is and has been a reliable source on this board. He also does his due diligence. Blackrock and several other mega investment firms are also promoting this area. My question is where this land is in proximity to the land owned by NTE?