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The Yucuiyuan sales center is located in the southern area of ​​Yicuiyuan at Yaojiayuan North Road and Yaojiayuan Dongli Middle Road in Beijing. It is hard for people who pay attention to this plot of land to imagine that Yucuiyuan will "reunite" with Yicuiyuan after such a long time.

Royal Jade Garden is the last project of Hutchison Whampoa, a subsidiary of Cheung Kong Holdings, which is managed by Li Ka-shing, in Beijing. It has been 23 years since it acquired the Yaojiayuan land for a total price of approximately RMB 700 million in 2001.

On July 18 last year, Yu Cui Yuan obtained the pre-sale certificate, and sales work started a year later. However, the property consultant of Yu Cui Yuan Sales Center said that Yu Cui Yuan is currently in the stage of intention subscription and is still waiting for the official launch.

One year after getting the certificate, the scarcity is also discounted

On both sides of many roads in Chaoqing section, deep red posters are quietly printed with words such as "Yu Cui Yuan View Mansion". The promotional posters mean that Yu Cui Yuan, which has survived the development cycle of 23 years and has its own hot topic of Li Ka-shing, has really entered the market.

According to the official website of Beijing Municipal Housing and Urban-Rural Development Commission, the registered name of "Yu Cui Yuan" is "Yicuiyuan", which is positioned as a high-end low-density residential building in the city, with flat and townhouse products to choose from. At present, there are 9 buildings in Yu Cui Yuan that have obtained pre-sale certificates, including 3 flats and 6 townhouses, with a sales area of ​​93,200 square meters and a total of 473 units. In addition to these 9 houses, Yu Cui Yuan has 5 flats and 12 townhouses that are not on the sales list. And according to the registered information, Yu Cui Yuan is sold as ready-made houses, which has become one of the advantages of the project.

Royal Jade Garden. Photographed by Bai Fan

However, facing the current real estate market adjustment, Yu Cui Yuan, which occupies a scarce position, has to start a discount strategy. According to the public price, the average selling price of Yu Cui Yuan is between 90,700 and 99,000 yuan, and the unit price of some units exceeds 100,000 yuan per square meter. A real estate consultant of Yu Cui Yuan said that there is currently a 3% discount on flat houses and 2% discount on townhouses. The four townhouses are not included in the discount and have been sold out.

There are also rumors that before the official pre-sale certificate is obtained, the "rumored price" of Yu Cui Yuan will be above 100,000 yuan per square meter by the end of 2022, which is about 10% higher than the current average selling price of more than 90,000 yuan. At the same time, in the current sales strategy, half of the balcony area of ​​​​the flat building is given away.

Sand table display of Yu Cui Garden. Photographed by Bai Fan

The above-mentioned real estate consultant said that Yu Cui Yuan is a very mature residential area and is not like other suburban areas.Off-planIn that case, we need to wait for the surrounding supporting facilities to be continuously improved. At present, Yu Cui Yuan has not been officially launched and is still in the intention subscription stage. The subscription fee for a flat is 500,000 yuan, and the subscription fee for a townhouse is 1 million yuan. As for when it will be launched, the property consultant said it is not clear yet.

Looking at the second-hand houses of the same category in the surrounding area, according to the information on the Shell platform, the current average listing price of Yicuiyuan, which is adjacent to Yucuiyuan, is 88,935 yuan/square meter, the average listing price of Yucui Shangfu is 88,902 yuan/square meter, the listing price of Guanhu International is 99,677 yuan/square meter, and the average price of Fanhai International is over 100,000 yuan/square meter.

Compared with the latter two, Yucuiyuan's location is slightly inferior. Moreover, Yucuiyuan was delivered in rough condition, which means that decoration also requires a large amount of funds, while most new houses in Beijing are delivered in fine decoration. The delivery standard is also a key point of competition among new houses nowadays.

The design of Yu Cui Garden has also become a point of criticism. According to official propaganda, Yu Cui Garden is a Hong Kong-style building, but some people think that this design from many years ago is outdated and has no appeal. In addition, the apartment design is also narrow in width,depthIt has a long waiting list and does not have any advantages compared to many new houses in Beijing today.

The price has been on sale for 23 years, and the price has increased by more than 50 times

Yucuiyuan is located between the Third Ring Road and the Fourth Ring Road of Beijing. It belongs to the Chaoqing section and is known as the CBD back garden and CBD business service area. This area is 3 kilometers away from Chaoyang Joy City, about 9 kilometers from the China World Trade Center, and about 3 kilometers from the Lido Business District. There are also Sanlitun, China World Trade Center, Yansha and other business districts around it, as well as nearly 10 parks of various sizes. The Sports Center Station of Metro Line 3, which is 200 meters away from the project, is expected to open in the second half of the year. Judging from the current surrounding configuration, Yucuiyuan's location is indeed scarce.

However, it took Li Ka-shing's Cheung Kong Group 23 years to change from a slightly desolate site to a scarce site. In 2001, Hutchison Whampoa, a subsidiary of Cheung Kong Group, acquired the 400,000 square meter Yaojiayuan site for a total price of about 700 million yuan, with the floor price at that time being only 1,750 yuan per square meter.

As the last project to be launched on this plot of land, Yu Cui Yuan also has the highest selling price, with the lowest residential unit planned to sell for an average price of more than 90,000 yuan. Compared with the floor price of 1,750 yuan per square meter 23 years ago, the unit price of Yu Cui Yuan has skyrocketed by more than 50 times.

The extremely long period of development has led to the continuous appreciation of the properties on the Yaojiayuan site.

After acquiring the Yaojiayuan plot in 2001, Hutchison Whampoa Real Estate (Beijing Chaoyang) Co., Ltd. was established in 2002 to manage the project. The construction of the plot did not start until June 2005. In November of that year, the first phase of the project on this land obtained a pre-sale certificate, which is now Yicuiyuan.

According to the Daily Economic News, a total of 760 commercial houses were put on the market in Yicuiyuan, and the final average transaction price was 9,230 yuan per square meter. Even so, the average transaction price of the first phase was about 5.27 times the floor price. At that time, the surrounding real estate projects such as Huafang Yicheng, Gome First City, and Xinghewan were listed one after another, and the land price was further released.

Yucui Shangfu is the second row of projects delivered in the Yaojiayuan plot, and it obtained the pre-sale certificate in 2011. As the Chaoqing block becomes more mature, Yucui Shangfu naturally follows the market. According to the information published by the Beijing Municipal Housing and Urban-Rural Development Commission, the price of the property was generally around 30,000 yuan per square meter at that time, and the unit price of some properties was as high as 40,000 or 50,000 yuan per square meter, and the transaction price was further magnified by the multiple of the floor price.

Extra long development cycle, increased risk

When talking about Cheung Kong Industries under Li Ka-shing, there is another project that cannot be ignored. Located next to the Henggang Reservoir in Houjie Town, Dongguan City, Guangdong Province, Haiyi Mansion is also a property developed by Hutchison Whampoa under Cheung Kong Industries. In early July, Haiyi Mansion launched 30 special-price houses, some of which were only 14,000-15,000 yuan per square meter. Previously, the average sales price of the project was about 23,000-24,000 yuan per square meter, and the price per square meter dropped by nearly 10,000 yuan.

Even so, the Haiyi Court project still makes considerable profits. In 1999, Hutchison Whampoa acquired the land with a total area of ​​more than 7,000 mu and a total construction area of ​​2 million square meters at a very low price. After being idle for nearly 8 years, the Dongguan Municipal Government fined it nearly 80 million yuan, and then the project development was delayed for another 5 years. So far, the Haiyi Court project has been developed for 25 years, even longer than the time span of the Yaojiayuan plot in Beijing.

According to the China Times, if we compare the price of multi-storey residential buildings in Dongguan with more than 2,000 yuan per square meter in 1998, the unit price of more than 10,000 yuan is still more than 6 times that when the land was acquired. In 2023, Haiyi Mansion is one of the main sales projects of Cheung Kong Group in the mainland market, and the other two are Shanghai Lakeside Mansion and Beijing Yutianxia.

The Yaojiayuan plot of land experienced a round of "near miss" recovery storm. Thirteen years after the land was acquired, on February 10, 2014, the Beijing Municipal Planning and Natural Resources Commission issued a "Notice on the Acceptance of Public Participation Opinions on the Yaojiayuan New Village Commercial Housing Phase II H Group Project in Pingfang Township".

According to the notice, the opinions raised online include: it is suggested to take back the land development rights of Hutchison Whampoa and re-bid the land to maintain the fairness of the land market and ensure government revenue; if the plan is adjusted according to this, the standard of supplementary payment of land price for the newly added construction scale will be raised. Regarding this opinion, the relevant departments responded that this public participation only solicited opinions on the adjustment of planning indicators, and the reasons for the adjustment, the land supply method and other issues will be reported to the municipal government for research and determination in conjunction with the urbanization of the green area in Pingfang Township. Therefore, the land supply method and the supplementary payment of land price in the feedback opinions are not within the scope of this public announcement.

In its 2023 financial report, Cheung Kong Group also listed idle land and delayed completion as risk factors, saying that according to mainland laws and regulations on idle land, if the developer fails to develop the land in accordance with the terms of the land transfer contract (including but not limited to payment of fees, designated land use, commencement of land development and completion time), the relevant authorities may issue a warning to the developer or impose a fine, or require the confiscation of the developer's land use rights. Cheung Kong Group said that this situation may have a significant adverse impact on the group's business, finance, operating performance, development prospects, etc.

According to the 2023 financial report of Cheung Kong Group, the mainland sector contributed HK$6.63 billion in revenue to the company's real estate sales, while in 2022, the mainland sector contributed HK$9.916 billion to the company's real estate sales.