XN000022-1994-08-23 — Page 3

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TUESDAY, AUGUST 23, 1994

TWO LOTS SOLD FOR $1,170 MILLION

TWO LOTS OF GOVERNMENT LAND WERE SOLD FOR A TOTAL AMOUNT OF THIS MILLION AT A PUBLIC AUCTION HELD BY THE LANDS DEPARTMENT $1,170 (TUESDAY) AFTERNOON.

ANOTHER LOT, COVERING AN AREA OF 2,435 SQUARE METRES FOR

TAU GODOWN USE IN HONG YIP STREET IN TUNG INDUSTRIAL OR

INDUSTRIAL

FOR WAS MADE AREA, YUEN LONG, WAS WITHDRAWN BECAUSE NO BIDDING OPENING PRICE OF $35 MILLION.

THE

THE LOT IN AREA 7, TAI PO, WAS BOUGHT BY ADMARCH LIMITED AT THE OPENING PRICE OF $950 MILLION. WITH AN AREA OF 15,250 SQUARE METRES, IT IS INTENDED FOR PRIVATE RESIDENTIAL USE.

THE DEVELOPER HAS TO COMPLETE A GROSS FLOOR AREA OF NOT LESS THAN 15,140 SQUARE METRES BEFORE SEPTEMBER 30, 1998.

THE OTHER LOT, WITH AN AREA OF 3,350 SQUARE METRES FOR GODOWN USE AT KWAI FUK ROAD, KWAI CHUNG, WAS BOUGHT BY NEOSTAR INVESTMENT LIMITED AT $220 MILLION, WITH BIDDING OPENING AT THE SAME PRICE,

THE DEVELOPER HAS TO COMPLETE A GROSS FLOOR AREA OF NOT LESS THAN 19,095 SQUARE METRES BEFORE SEPTEMBER 30, 1997.

HELD IN THE THEATRE OF THE CITY HALL, THE AUCTION WAS CONDUCTED BY GOVERNMENT LAND AGENT, MR JOHN CORRIGALL.

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IN

AUCTION, SAID:

GOVERNMENT RESPONDS TO LAND AUCTION RESULTS * * * * *

RESPONSE TO PRESS ENQUIRIES ABOUT RESULTS OF A SPOKESMAN FOR THE PLANNING, ENVIRONMENT AND

TODAY'S LAND LANDS BRANCH

BIDDERS

"THE VIEW IN THE MARKET IS THAT CAUTIOUS RESPONSE FROM IS DUE TO A NUMBER OF REASONS INCLUDING THE RECENT RISE IN INTEREST RATE AND GOVERNMENT'S MEASURES TO MODERATE PROPERTY PRICES.

"THE TAI PO SITE WITH A PLOT RATIO OF 1.65 IS FOR LOW DENSITY DEVELOPMENT. THE PREMIUM REALISED COMES TO ABOUT $3,600 PER SQUARE FEET WHICH IS REASONABLE IN COMPARISON WITH OTHER SALES IN THE AREA.

"THE

LACK OF INTEREST IN THE YUEN LONG LOT MAY BE DUE ΤΟ ITS GEOGRAPHICAL LOCATION AND POSSIBLF CONSTRAINTS ON DEVELOPMENT POTENTIAL OF THE SITE.

**THE RESULTS ARE AN INDICATION OF FURTHER COOLING OF THE MARKET. THIS COULD BE INTERPRETED AS BBING IN LINE WITH THE COMMUNITY'S WISH AS WELL AS GOVERNMENT'S INTENTION TO SFE PROPERTY

PRICES MODERATING.

"WE SHOULD NOT READ TOO MUCH INTO THE RESULTS AUCTION WHICH IS INFLUENCED BY MANY FACTORS," HE SAID.

OF A SINGLE

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