vi_editor

HK ranked Asia’s biggest investment destination
A number of large property transactions with a total consideration of USD 8.269 billion (approx. HKD 64.6 billion) have made Hong Kong the biggest investment destination in Asia in the first half of 2017, according to Emerging Trends in Real Estate Asia Pacific 2018 report, a real estate forecast jointly published by the Urban Land Institute (ULI) and PwC.

2 HKHS projects oversubscribed 140 times
Applications for the Hong Kong Housing Society (HKHS)’s two subsidized housing projects, Mount Verdant and Terrace Concerto, were closed yesterday. HKHS received 87,971 application forms in total, excluding some forms submitted by posts and estate offices. The projects were oversubscribed by a record high of 140 times.

MOUNT NICHOLSON transacted for HKD 132,000 psf
The Wharf and Nan Fung’s MOUNT NICHOLSON Phase 3 on The Peak sold out 2 flats yesterday. The price was more than HKD 600 million or HKD 131,000 per sq ft for Flat D, 12/F, Block D, while that of Flat C, 12/F, Block C, was HKD 560 million or HKD 132,000 per sq ft. The prices broke the record HKD 105,000 per sq ft set by the top floor unit of 39 Conduit Road in September this year, setting a new high in Asia.

The Sun’s Group Centre sold for HKD 157 m
It is reported that 13/F, The Sun’s Group Centre, Wan Chai, with an area of 7,388 sq ft, has been changed hands with vacant possession for HKD 157 million or HKD 21,250 per sq ft. The original owner purchased the property at HKD 25.9 million in December 2004, making a book profit of HKD 131.1 million or 5 times in around 13 years.

(Sources: Vigers Research and market news)

Secondary transactions recover at weekend
Purchasing power returned to the secondary market as the market was lack of large-scale new launches over the past weekend. Centaline reported 12 transactions in the 10 major estates over the past 2 days, up by 4 transactions w-o-w. Kingwood Villas in Tin Shui Wai and Taikoo Shing in Quarry Bay performed the best, posted 4 transactions each.

Nearly 50 new homes sold over weekend
New launches have been well received in the market. Approximately 49 first-hand transactions were recorded over the past two days, same as the figure last weekend. Among which, Kerry Properties’ Mantin Heights in Ho Man Tin accounted for 17 transactions, totaling more than HKD 280 million.

Medical group pre-leased 122 QRC at HKD 1.8 m
Renovation works are in progress at 122 QRC, 122-126 Queen’s Road Central, Central. The property is a commercial block owned by Tai Hung Fai Enterprise. The office space of the building, involving a GFA of more than 32,000 sq ft, has been pre-leased by a medical group for HKD 1.8 million per month or HKD 56 per sq ft.

141 retail property transactions in Oct
According to market statistics, a total of 141 retail property transactions were registered in October, down 4.7% m-o-m. Total consideration increased by 1.8% m-o-m to HKD 1.94 billion during the month. Tsim Sha Tsui posted 13 cases, the highest number among all the districts. The consideration in Tsim Sha Tsui amounted to HKD 242 million, i.e. HKD 18.612 million per transaction on average.

(Sources: Vigers Research and market news)

Relocating terminals a long-term option
The Task Force on Land Supply discussed the relocation of and topside development over Kwai Tsing Container Terminals. Chairman Stanley Wong said it is a land supply option in the longer term. Cost-effectiveness of the relocation plan also needs to be considered. The Government has not yet conducted policy and technical studies on the proposal.

Buildings Dept approved 23 building plans in Sep
The Buildings Department approved 23 building plans in September 2017, including 4 land plots which received the approval for the first time. Among which, Sun Hung Kai Properties’ project of Tin Shui Wai Area 115 has the largest development scale. It is expected to provide 10 villas and 30 residential blocks, with a total GFA of about 1.0398 million sq ft.

Admiralty Centre sold for nearly HKD 30,000 psf
It is reported that Unit 21, High-Floor, Admiralty Centre Office Tower 1, Admiralty, with an area of 943 sq ft, has been sold for HKD 28 million or HKD 29,600 per sq ft. The property is a high-floor unit with broad views and therefore sold at a high price. The unit rate achieved a new high for the building. Many record breaking transactions have been posted recently for prime office buildings, e.g. Far East Finance Centre and Shun Tak Centre in Sheung Wan, etc.

36% rent cut on Pak Sha Road Causeway Bay
According to market sources, Shops A2, A3, B&C, G/F, 1-3 Pak Sha Road, Causeway Bay, with an area of 1,600 sq ft, have been leased to a restaurant for HKD 357 per sq ft. The rent is at least 36% below the old rent and returns to the rental level in 2011. Previous tenant was a cosmetic chain store.

(Sources: Vigers Research and market news)

7 new launches with 2,450 flats put up for sale
The primary market remains red-hot. About 7 new projects are expected to launch this month, involving more than 2,450 flats. Among which Sun Hung Kai Properties accounts for the majority of supply, Victoria Harbour in North Point and Cullinan West II in South West Kowloon will provide 355 units and 500 units respectively. The first batch will involve less than 10 units by this week and 200 units respectively.

Industrial transactions expected to reach HKD 45 b
According to an estate agency’s statistics, a total of 4,162 industrial transactions with a total consideration of HKD 35.64 billion were registered in the first 10 months of 2017. The figures already surpassed the annual record of 2,920 transactions and HKD 25.75 billion in 2016 by 42.5% and 38.4% respectively. The figures are expected to reach 5,000 transactions and HKD 45 billion in 2017, setting a 5-year high.

Old building on Wellington Street sold for HKD 228 m
The en-bloc located at 94 Wellington Street has been sold for HKD 228 million or HKD 38,000 per sq ft. The property is a 7-storey building with an age of 50 years old. It has a site area of 1,013 sq ft and a GFA of 6,000 sq ft. The location is close to the URA’s Peel Street / Graham Street Development Project in Central.

Street shop in Tuen Mun leased at HKD 267 psf
A number of leasing transactions were seen on Tuen Mun Heung Sze Wui Road, the 1st-tier street in the district. For example, Shop G12A, G/F, 112-140 Tuen Mun Heung Sze Wui Road, with an area of 300 sq ft, has been leased to a Chinese barbecue restaurant for HKD 80,000 per month or HKD 266.6 per sq ft. The rent is 33.3% higher than the old rent paid by a pharmacy.

(Sources: Vigers Research and market news)

Nearly 50 new homes sold over weekend
A total of 48 first-hand transactions, involving over 10 new housing projects were sold over the weekend. The figure was close to the record last weekend due to the lack of large-scale new launches and the market was in observation on the price of Sun Hung Kai Properties’ Cullinan West II at Nam Cheong Station and Victoria Harbour in North Point.

Secondary transactions fell over weekend
Over the past weekend, Centaline reported 8 transactions in the 10 major estates, slashed 43% w-o-w and there was no transaction recorded in 5 estates. Meanwhile, Midland Property also posted 8 transactions, down 27% w-o-w; Ricacorp posted 5 transactions, down 50% w-o-w; Hong Kong Property posted 7 transactions, remained the same as last weekend.

Commercial property sales reach 5-year high
According to market data, a total of 1,780 sales and purchase agreements for commercial property were registered as of November 9 this year, reaching a 5-year high. Total consideration amounted to HKD 31.86 billion during the same period, 22.7% above HKD 25.975 billion last year as a whole.

Shui On Centre rent up 10.5% to HKD 42 psf
It is reported that an entire low-floor of Shui On Centre, Wan Chai, with an area of 22,438 sq ft, has been leased to Hong Kong Identity Card Centre for HKD 940,000 per month or HKD 42 per sq ft, 10.5% higher than the old rent of HKD 38 per sq ft. The previous tenants included some business centres.

(Sources: Vigers Research and market news)

103 sites zone for housing development
According to the Development Bureau, as of March 2017, the government has identified about 215 sites with rezoning potential in recent years. 103 of which had been zoned or rezoned for housing development, estimated to provide a total of about 122,200 flats.

2 HKHS projects oversubscribed 21 times
Applications for the Hong Kong Housing Society (HKHS)’s two subsidized housing projects, Mount Verdant in Tseung Kwan O and Terrace Concerto in Tuen Mun, totaling 620 flats, began 3 days ago. HKHS received 13,977 application forms as of yesterday. The projects were oversubscribed by 21.5 times in 2 days. 94.2% of application forms were submitted online and Green Form applicants only accounted for 19 cases.

Shun Tak Centre sold for record HKD 32,000 psf
Superactive Group announced that the group has purchased multiple units of 15/F, Shun Tak Centre West Tower, Sheung Wan, for HKD 320 million. It will be the corporate headquarters in Hong Kong and principal place of business. The units involve a GFA of 10,011 sq ft and the unit rate of about HKD 32,000 per sq ft achieved a new high for the building.

WeWork leased 4 floors of Cityplaza
Co-working space providers are one of the major office tenants in Hong Kong this year. It is reported that 19/F-22/F, Cityplaza, Quarry Bay, have been leased to WeWork for HKD 45 per sq ft. 21/F and 22/F are a top-floor duplex unit of the property and the GFA is approximately 50,000 sq ft.

(Sources: Vigers Research and market news)

Stanley Wong: 5 coasts suitable for reclamation
After attending the third meeting yesterday, Stanley Wong, Chairman of the Task Force on Land Supply, said the committees have identified 5 coasts in Hong Kong which are suitable for reclamation, including Lung Kwu Tan in Tuen Mun, Sunny Bay on Lantau Island, Siu Ho Wan, Ma Liu Shui and Tsing Yi Southwest. It is expected to provide 400 hectares of land.

SHK PPT’s Shap Sze Heung land premium said to be HKD 15 b
Sun Hung Kai Properties announced in September that the land premium for Shap Sze Heung project in Sai Kung was settled. Yesterday the market rumored the land premium was more than HKD 15 billion or HKD 3,200 per sq ft (based on the GFA of 4.83 million sq ft). The lump sum broke the record of HKD 9.6 billion for Henderson Land’s Lok Wo Sha project in Ma On Shan for converting farmland to residential use in 2009.

Old building site at Percival Street sold for HKD 950 m
It is reported that 85-87 Percival Street in Causeway Bay, has been sold by a veteran shop investor, Tang Shing-bor, for about HKD 950 million. It has a site area of 2,300 sq ft and a maximum permissible GFA of 34,500 sq ft. The buyer is likely to unify the ownership of the building and redevelop it as a Ginza-style commercial building afterwards for long-term rent.

Giant shop on Granville Road rent for HKD 97 psf
According to market news, the ground floor of a newly completed commercial block at 29A-31A, Granville Road, Tsim Sha Tsui, has been leased to Watsons for HKD 200,000 per month or HKD 97 per sq ft. The shop has an area of about 2,052 sq ft. An estate agency pointed the rent is below the current market level.

(Sources: Vigers Research and market news)

Tender of Wong Chuk Hang Station Package 2 close next month
The tender invitation for MTR’s Wong Chuk Hang Station Package 2 property development project commenced yesterday and will close on 1 December. It is said that the land premium for the project is about HKD 5.21 billion or HKD 10,576 per sq ft of floor space, 30% higher than HKD 8,119 per sq ft for Package 1 project in January 2017 and setting a historic high for MTR projects.

Residential completions slashed 59% in Sep
The Rating and Valuation Department announced that 481 residential units have completed construction in September this year, slashed 59% m-o-m compared with 1,183 units in August. Total completion was 12,900 units in the first nine months, meeting the whole-year forecast of 17,100 units by 75.4%.

Mid-floor unit of Shun Tak Centre sold for HKD 50 m
According to market sources, Unit 13, Mid-Floor, China Merchants Tower, Shun Tak Centre, Sheung Wan, with an area of 1,632 sq ft has been transacted with vacant possession for about HKD 50 million or HKD 30,600 per sq ft. The unit has a sea view of Central. The transaction price is close to the building record in terms of unit rate.

More short-term retail leases at year-end
For clearance outlets, short-term leases are common to see at year-end. Shop A, G/F, 2-6 Kau Yuk Road, Yuen Long, with an area of 750 sq ft, has been rented by a clearance outlet selling sporting goods for HKD 130,000 at short-term lease. Previously the shop was rented by a grocery outlet with HKD 105,000 at short-term lease, representing a rental increase of 23%.

(Sources: Vigers Research and market news)

URA invites tenders for Reclamation Street Project
The Urban Renewal Authority (URA) yesterday invited 40 developers or consortia to tender for the development of the Reclamation Street/Shantung Street project in Mong Kok. The project has a site area of 14,951 sq ft. With a residential/commercial GFA of 134,647 sq ft, the project can provide about 187 residential units. Tender invitation will close on 4 December.

Wong Chuk Hang Station Package 2 receives 37 EOIs
Invitation for expression of interests (EOIs) for the property project Wong Chuk Hang Station Package 2 was closed. 37 EOIs were received by MTR Corporation, setting the second highest number of EOIs received for MTR projects. The tenderers included New World Development, Wheelock, China Overseas, Great Eagle, Nan Fung Group and Chinachem, etc.

Property transactions down 6% to 7,063 in Oct
The Land Registry announced that the number of sale and purchase agreements for all building units received for registration was 7,063 in October, down 6.3% m-o-m or 17.5% y-o-y. The total consideration for sale and purchase agreements was HKD 53.7 billion in October, decreased by 5.2% m-o-m or 18.8% y-o-y.

IFC 2 rented for HKD 200 psf
It is reported that Units 1&16, Mid-Floor, IFC 2, Central, have been leased to a financial institution for HKD 586,000 per month or HKD 200 per sq ft. The units with a lettable area of 2,930 sq ft enjoy a panoramic sea view. The new rent is 25% higher than the previous one and reached a new high for the building since the financial crisis in 2008.

(Sources: Vigers Research and market news)

The Center sells for HKD 40.2 billion
CK Asset Holdings announced yesterday that 75% stake of The Center is confirmed to be sold at HKD 40.2 billion, becoming the most expensive property transaction in the city. The unit rate is about HKD 33,000 per sq ft based on the GFA of 1.22 million sq ft. The purchaser is C.H.M.T. Peaceful Development Asia Property Limited.

MPFA studying to allow using MPF for home purchase
When being asked about whether the authorities will examine allowing first-time home buyers to use the accrued benefits in their Mandatory Provident Fund (MPF) accounts to make down payments, Secretary for Financial Services and the Treasury James Lau responded to a lawmaker that the MPF Authority is conducting a related study.

Number of estate agent reached 38,300
According to the Estate Agents Authority’s statistics, there were 38,346 estate agent’s licences issued as at the end of October, 52 individuals or 0.1% more than the September’s figure. The figure has been rising for 6 consecutive months and setting new highs for 5 straight months. However, the growth has been slowed down. Five agents were competing for one transaction on average.

Nathan Road short-term lease for HKD 129 psf
It is reported that the leasing agreement of Shops G1, G2 & G13, G/F, Nathan Centre, Mong Kok, with a GFA of about 2,560 sq ft, has been renewed by an outlet under short-term lease. The new rent is HKD 330,000 per month or HKD 129 per sq ft, close to the previous rental level but it is about 60% lower than the long-term lease.

(Sources: Vigers Research and market news)