NWD halts all construction over outbreak

New World Development (0017) became the first local developer to shut down all of its construction sites for two weeks from yesterday until February 17 amid the coronavirus outbreak, as the number of completed private residential units fell to a four-year low in 2019.

The developer said it would review the epidemic's development on a weekly basis and adjust the reopening day of construction sites if required.

It also denied that any employees were infected with the virus, saying none of its staff were confirmed or suspected cases and the suspension was a proactive measure to protect its staff and their families.

The company has been developing six residential and commercial projects, among which, the project atop the Tai Wai Station is expected to offer 3,090 units with the first batch to be launched in the first half of this year.

The Hong Kong Construction Association estimated that 20-30 percent of Hong Kong's construction workers had visited the mainland during the Lunar New Year holiday, and other developers may follow NWD in suspending projects as virus cases escalate.

Meanwhile, the number of completed private residential units dropped 35 percent year-on-year to 13,600 in 2019, a four-year low, according to the Transport and Housing Bureau.

A real estate agency firm expects the number of completed units to continue to fall in the future, as developers are on the sidelines amid the escalation of the coronavirus crisis.

The Transport and Housing Bureau expects that in the following few months, six residential sites could be ready for construction and could provide 3,900 units.

In other news, Wharf Holdings (0004) is set to hand out 10 million yuan (HK$11 million) to establish a fund for the prevention and control of the coronavirus following donations by NWD and Henderson Land Development (0012), but the largest two property operators - Sun Hung Kai Properties (0016) and CK Asset (1113) - have yet to make such an announcement.

(The Standard)

Nine target Lohas site as valuation slips from virus

Nine developers have submitted a tender for Phase 12 of Lohas Park in Tseung Kwan O yesterday, including Henderson Land Development (0012), CK Asset (1113) and Sun Hung Kai Properties (0016).

But analysts have revised down the site's valuation to as little as HK$4.8 billion in view of the Wuhan coronavirus outbreak.

Empire Group said although the virus has impacted the company's bidding price, the group believes it will not affect the development of the whole project in the long term. Besides, there are few units atop the MTR station and they have a rigid market demand.

MTR Corporation's chief property manager David Tang Chi-fai billed the response to the tender submissions as enthusiastic.

A real estate agency valued the site at HK$4,500 per buildable square foot, down by 10 percent due to the Wuhan virus outbreak, and the estimated price for the land at about HK$4.33 billion.

Meanwhile, another agency valued the site at HK$6,000 to HK$6,500 per buildable square foot as primary flats in the same district have sold well and the price should be higher than that of phase one.

In other news, the overall Hong Kong Interbank Offered Rate saw a pullback yesterday. The one-month Hibor, which is linked to the mortgage rate, fell to 2.15661 percent.

(The Standard)