Li Ka-shing Sells Off Beijing Real Estate; Property Prices Rise 43 Times Compared to Land Purchase Price

Previously, many of Li Ka-shing’s real estate projects in mainland China have been sold at discounted prices. (Photo by Guo Weili / Dajiyuan)

October 30, 2024 - Recently, Li Ka-shing’s last real estate project in Beijing, Yucui Garden, opened for sale, offering discounted properties at 76% of the original price, lower than the prices of nearby second-hand properties.

According to reports from China Fund News and The Paper, over a year after obtaining the pre-sale permit, Li Ka-shing’s final real estate project in Beijing, Yucui Garden, went on sale. On October 26, the project, which had a record price of nearly 100,000 yuan per square meter, launched 50 discounted units priced at just 76,000 yuan per square meter, sparking a buying frenzy.

It is understood that after the 50 discounted units sold out that day, Yucui Garden released additional units that evening, although prices were generally raised. The average price for townhouses exceeded 80,000 yuan per square meter, while high-rise units were priced between 77,000 and 86,000 yuan per square meter, still below the previous record price of 90,700 to 99,700 yuan per square meter.

The Yucui Garden project, in fact, received its pre-sale permit on July 18 last year and represents the final phase of development for this plot, with a development cycle spanning 22 years.

According to information from the official website of the Beijing Municipal Commission of Housing and Urban-Rural Development, the Yucui Garden project’s pre-sale area includes nine residential buildings, with a total permitted sales area of 93,212.24 square meters and 473 units. Among them, Buildings 2, 4, and 5 are high-rise products, totaling 396 units, while the remaining 77 units are townhouses. In terms of pricing, the highest intended average sale price is 99,744.99 yuan per square meter, and the lowest is 90,672.35 yuan per square meter.

Located in Yaojiayuan, Chaoyang District, Beijing, the Yucui Garden project is part of the Chaoyang-Qingnian Road area, just a 20-minute drive from both Wangjing and the CBD, earning it the nickname "Backyard of the CBD."

According to data from the Beike platform, Yucui Garden, as a new property, is priced lower than comparable second-hand properties in the surrounding area.

Although the official sale price is far lower than expected, Li Ka-shing has still made significant profits on this project.

According to a report by Red Star News on the 29th, Yucui Garden is a high-end residential project developed by Hutchison Properties, a subsidiary of CK Hutchison Holdings, a Hong Kong-listed company.

Data shows that the Yucui Garden project’s developer is Hutchison Whampoa Properties, owned by Li Ka-shing. The plot’s total area is approximately 400,000 square meters and was acquired by Hutchison Whampoa Properties in 2001 for 700 million yuan, with a floor price of only 1,750 yuan per square meter.

Four years after acquiring the land, Cheung Kong Holdings’ first phase of the project, Yicui Garden, opened for sale in 2005, followed by a long marathon-like development process. More than 20 years after acquiring the land, the second phase, Yucui Garden, finally opened for sale this year. After 23 years, the property price has surged to 43 times the land cost.

Previously, several other properties under Li Ka-shing’s name have also been sold at discounts, with markdowns reaching up to 50%. In July of this year, Li Ka-shing’s Harbour Glory project in Dongguan was sold at a 50% discount, with a minimum price of 13,000 yuan per square meter, compared to its peak price of 30,000 yuan per square meter.

Responsible Editor: Zheng Haoyu