No. of view: 6766
Property News Weekly Digest
2018/4/14
〈Asian Post, April 14, 2018〉Authority's deputy warns homeowners to 'be mindful' of their mortgage repayment obligations as the city's monetary conditions become tighter?The city's de facto central bank yesterday said it had sold HK$3.26 billion worth of US dollars to back the Hong Kong dollar after it fell to its weakest level in 35 years and breached the lower limit of its trading band for the first time.

The Hong Kong Monetary Authority bought the local dollar and sold the American currency in two transactions, one during European trading hours yesterday, and the other before the close of trading in New York, deputy chief executive Howard Lee said.

It was the latest tightening of the city's monetary conditions, causing concern among homeowners about possible interest rate rises that will increase their mortgage repayments.

The dollar peg to the greenback means the HKMA does not have an independent monetary policy and cannot do more than compel local interest rates to track US rates rather than the city's economic conditions.

Singapore's central bank tightened monetary policy for the first time in six years yesterday, increasing the slope of the Lion City's dollar policy band. Malaysia's central bank tightened policy in January, and the Bank of Korea raised interest rates in November.

Lee said that while property prices were determined by a combination of factors, and not just mortgage and interest rates, debtors should be mindful of their repayment capabilities.

The intervention came after the dollar slipped to 7.8500 against the greenback yesterday, a level that compels the HKMA to take action in the market.

Transactions were in line with the "linked exchange-rate system" and aimed at "normalising monetary conditions" so the city's interest rates would move closer to those in the US, Lee said.

The move meant Hong Kong's aggregate balance, the level of liquidity in the banking system, would fall to HK$176.5 billion from HK$180 billion as of the settlement date on April 16, he said.

〈The Standard, April 13, 2018〉The latest offer of Home Ownership Scheme flats elicited an overwhelming response on Wednesday, with an oversubscription of at least 36.4 times, the Housing Authority said.

As of 7pm on Wednesday, the HA received about 166,000 applications for 4,431 new flats that were on offer.

On the same day, the HA also received about 39,000 applications under the White Form Secondary Market Scheme, representing an oversubscription rate of 14.6 times.

Meanwhile, Sun Hung Kai Properties (0016) may release today the first price list for its Mount Regency project in Tuen Mun, according to Amy Teo, general manager of sales at Sun Hung Kai Real Estate Agency.The first phase of Mount Regency will provide 522 one- to two-bedroom flats.

Teo said Tuen Mun continues to offer great development potential since it is at the intersection of the Big Bay Area initiative and the Hong Kong-Zhuhai-Macau Bridge.

Meanwhile, a 1,422-square-foot apartment at SHKP's Cullinan project in Kowloon was sold for about HK$79.26 million, according to Land Registry data.

Colliers International, a US-based real estate service company, said it expects an 8 to 10 percent increase this year in the price of mass residential flats and a 3 to 5 percent price rise in the luxury housing sector.

Overall, Hong Kong's property market will remain strong and healthy, with demand robust, analysts said, adding market risks remain low to medium.

Colliers said grade B office buildings around Central offer "potential to lure investors with value-added opportunities."

In the industrial property market, prices of warehouse and flatted factory premises are expected to go up by an average of 8 to 10 percent a year between 2018 and 2022.

The family of Executive Council convenor Bernard Chan reportedly bought two flats at Beaumount in Tseung Kwan O, after he made a HK$3.86 million gain from the sale of a flat at The Wings.

〈Macau Daily, April 6, 2018〉More multinational companies will leave Central district in Hong Kong, where rents have become too high, with some even considering leaving the city altogether.

Average office rents continue to rise in greater Central, which includes the districts of Central, Admiralty and Sheung Wan.

In the first quarter, rents rose 8.7 per cent from a year ago to HK$134.30 per square foot a month, according to the latest figures provided by United States commercial real estate services company Cushman & Wakefield.

Rents in core Central, which comprises 12 prime buildings such as the International Finance Centre and Cheung Kong Center, now stand at HK$161 per square foot a month.

While Cushman & Wakefield expected office rents in greater Central to increase 7 to 9 per cent for the whole year, the largest gain among all districts, global property services company Colliers International said it expected rents in Central to rise a further 5 to 8 per cent over the next nine months.

Colliers said some offices in core Central might even fetch rents as high as HK$200 per square foot a month and set a record in two years' time.

"Rents have increased more than we expected," said Fiona Ngan, the head of office services at Colliers.Data compiled by the company showed office rents in Central had increased 3 to 5 per cent during the first three months of this year.

"We are seeing more legal firms and overseas financial companies moving - whole or part of their teams - away from Central, and more Chinese companies coming to the area. The move by Goldman Sachs will become a market trend," Ngan said.

Global investment bank Goldman Sachs plans to move its back-office staff from The Center, the world's most expensive office tower, which sold for HK$40.2 billion in November, in Central to Lee Garden Three in Causeway Bay when its lease expires in December. It will retain its office in Cheung Kong Center.

〈The Standard, April 12, 2018〉Wang On Properties (1243) has submitted the winning bid of HK$867.3 million for a site on Liu To Road and Hang Mei Street in Tsing Yi, the Lands Department announced.

James Cheung, executive director of Centaline Surveyors, said the 14,854 square foot site cost about HK$8,500 per square foot, meeting expectations.

He predicted the site will be developed as single-block housing, providing medium and small-sized flats to respond to market demand. He noted the property is located near public housing estates, including Cheung Hang Estate and Cheung Wang Estate, but deviates from the MTR station.

The last site in Tsing Yi fetched HK$938 million, or HK$1,980 per sq ft, and was acquired by Grand Ming Group Holdings (1271) in 2016, showing a 329 percent increase in per sq ft price in the latest tender.

This site has allowable gross floor area of 102,100 sq ft, and is expected to provide 170 flats, with market valuation of between HK$6.6 million and HK$10.2 million per flat.

The lowest three floors are designated for non-residential use, with the permissible gross floor area of 4,310 square feet, including the area of minibus stop which is required to be built by the tender's winner.

The tender closed last Friday, with 25 bids received. Local developers submitting bids included CK Asset Holdings (1113), Grand Ming Group Holdings, Chevalier International Holdings (0025), K&K Property Holdings, Empire Group Holding, K Wah Group (0173), HKR International (0480), Tai Hung Fai Enterprise, Emperor International Holdings (0163), China Overseas Land & Investment (0688), Far East Consortium International (0035), Wheelock Properties, Sino Land (0083), and Hong Kong Ferry (0050).

〈Asian Post, April 11, 2018〉Housing rents in Hong Kong in January eased slightly from December after rising for 13 consecutive months. This was reflected in the Rating and Valuation Department's rental index for January, which stood at 186.5, 0.3 percent lower from the December level.

Colliers International deputy managing director Vincent Cheung attributed the slight drop to the increased supply of new flats last year, resulting in more flats being offered for rent and which, in turn, exerted downward pressure on rent.Most estates saw rental increases last year. Smaller flats saw higher increases than bigger apartments.

Rents for flats of below 1,075 square feet rose by 6.4 percent, while those bigger than 1,076 sq ft saw an average rent increase of just 3.5 percent.

Rents for Class A flats, or those less than 431 sq ft, rose by 8 percent, while those for Class B units, between 432 and 752 sq ft, went up by 5.8 percent.

Meanwhile, rents for Class C flats, with sizes between 753 and 1,075 sq ft, and Class D flats, measuring between 1,076 and 1,721 sq ft, rose by 4.5 and 4.4 percent, respectively.

However, Class E flats, or those measuring more than 1,722 sq ft, only posted a 1.8 percent increase in rents.Rents for all types of apartments in the New Territories rose by at least 9 percent last year, showing the most stable rent performance compared to all other districts.

Rents for different types of flats on Hong Kong Island rose, but Class D flats incurred a 7 percent decline in rents last year.Flats in Kowloon posted rental spikes last year, particularly Class E and Class D apartments which saw rental surges of over 60 percent and 19.6 percent, respectively.

Charles Chan, managing director for valuation and professional services at Savills, said there was strong demand for flats that measure just around 400 square feet.