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350 first-hand sales recorded over weekend
Purchasing power remained strong in primary market. Approximately 350 primary transactions were recorded at weekend, up 1.4 times over 143 cases in the previous weekend. Among which, 158 units of One Kai Tak were sold out as at 8p.m. yesterday, accounting for 54% of total units available for sale.

Secondary market remained quiet
Over the past weekend, Centaline Property Agency only recorded 1 transaction in the 10 major estates, setting a 22-month new low. Midland Realty and Hong Kong Property reported 4 and 5 transactions, respectively, same as the figures in last weekend; Ricacorp Properties reported 2 transactions, down 1 transaction w-o-w.

Revenue from “spicy tricks” falls 27% in Jul
The Inland Revenue Department announced that tax revenue from the 3 “spicy-trick” stamp duties totaled HKD 2.17 billion in July, down 27.3% m-o-m. Revenue from Special Stamp Duty (SSD) dropped 29.8% to HKD 21 million, revenue from Buyer’s Stamp Duty (BSD) dropped 2.6% to HKD 717 million, while revenue from Double Stamp Duty (DSD) slashed 35.4% to HKD 1.434 billion.

Street shop in Shau Kei Wan leased at HKD 92,000 per month
It is reported that Shops A&B, G/F, 296-302 Shau Kei Wan Road, with a saleable area of 1,363 sq ft, have been leased to a food and beverage shop at HKD 92,000 per month, or HKD 67.5 per sq ft of saleable area. The previous tenant was a sports store.

(Sources: Vigers Research and market news)

Tender for commercial site in Cheung Sha Wan close today
A site at New Kowloon Inland Lot No. 6572 at the junction of Wing Hong Street, Yu Chau West Street and Wing Ming Street, in Cheung Sha Wan will be disposed of by public tender, which will close today. It has a site area of about 30,925 sq ft and is designated for non-residential (excluding hotel, petrol filling station and residential care home) purposes. Market valuation is about HKD 2.97 billion, with an A.V. of HKD 8,000 per sq ft.

MTR: only 3 projects open for tender this year
MTR announced yesterday that the number of tender for property projects would reduce from 8 to 3 during the year, cutting approximately 64% supply of units. David Tang Chi-fai, Property Director of MTR, said only the Wong Chuk Hang Station Phase 2 project will be disposed of by tender in the remaining half year, after taking market supply and affordability into consideration.

80% ownership of Sai Wan old building sold for HKD 210 m
Recently Tai Hung Fai Enterprise has purchased a basket of old units at 99 & 101 Des Voeux Road West, Sai Wan, involving over 80% of ownership share. The group is expected to combine the redevelopment with the projects in Connaught Road West, with a total site area of 15,000 sq ft for commercial purpose.

Central Tower leased out at HKD 110 psf
It is reported that an entire floor of Central Tower, in Central, with an area of 7,937 sq ft, has been leased out at HKD 870,000 per month, or HKD 110 per sq ft. The unit was previously leased to a renowned human resources consultancy firm at HKD 90 per sq ft. Hence, current rent lifted about 22%.

(Sources: Vigers Research and market news)

Yuen Long South expected to provide 28,500 new flats
The Planning Department and the Civil Engineering and Development Department yesterday announced the Yuen Long South Recommended Outline Development Plan. The Development will provide 28,500 new flats and accommodate 88,000 people, with the support of infrastructure, public utilities and commercial and community facilities. It would generate about 10,500 employment opportunities.

Sales of second-hand HOS flats reached 17-month low
According to market data, in July, only 322 registrations of second-hand Home Ownership Scheme (HOS) flats, totaling HKD 1.403 billion, were recorded in both free market and secondary market, fell 22.2% and 25.3% respectively, compared to 414 registrations, totaling HKD 1.878 billion in last month. The number of registrations and consideration reached the lowest levels in 17 months and 16 months, respectively.

40% rent slash at Sai Yeung Choi Street South
It is reported that entire block of 1L-1M Sai Yeung Choi Street South, Mong Kok, with a GFA of 4,800 sq ft, has been leased to China Mobile, a telecommunication company, for HKD 1 million per month, or HKD 208 per sq ft. The rent is HKD 800,000 or 44% lower than the previous rent. The shop was previously rented by Chow Tai Fook, a local jewellery chain store.

Oxford Road villa without title deeds sold for HKD 144 m
It is reported that No.12 House, No.1 Oxford Road, Kowloon Tong, was sold at HKD 144 million in an auction yesterday. It has become the city’s largest transaction of property without proper title deeds. The original owner purchased the property at HKD 168 million in 5 years ago, it depreciated HKD 24 million, or about 14.3%.

(Sources: Vigers Research and market news)

Office rental index rising for 9 months
According to the Rating and Valuation Department (RVD)’s statistics, the overall private offices rental index was 239.5 in June, edged up 0.08% m-o-m, and hitting a new high again. The figure has been rising for 9 consecutive months, with a cumulative growth of 2.79%, up 3.9% on a yearly basis.

HK commercial real estate market ranks top in Asia-Pacific
Hong Kong climbed to the highest position on a list of largest commercial real estate markets in the Asia-Pacific in the first half of 2017, and surpassed Tokyo, in Japan, for the first time, based on the latest research from Real Capital Analytics (RCA). Total consideration of the city reached USD 8.3 billion during the period, increased by 5% y-o-y.

Leasing activity of laundry was active
Leasing activity of laundry was active recently. It is reported that the leasing agreement of a street shop, 47A Yuk Wah Street, Wong Tai Sin, with a shop area of 800 sq ft and a 700-sq-ft mezzanine floor, has been renewed by a laundry for HKD 26,000, 40% higher than the original rent of HKD 18,200. Hung Hom and Tsuen Wan also recorded similar transactions.

Villa at Marinella transacted for HKD 139 m
The tender of a villa of K.Wah’s residential project, Marinella, in Aberdeen, was opened last Saturday and it has been transacted for HKD 139 million, or HKD 50,000 per sq ft yesterday, according to the register of transactions. This No. 18 villa has an area of 2,788 sq ft, a 996-sq-ft garden and a 57-sq-ft terrace.

(Sources: Vigers Research and market news)

135 new homes sold over weekend
Primary market was getting warmer during the first weekend of August. 135 new home sales were recorded as at 9p.m. yesterday, much higher than the 55 units at the previous weekend. Among which, all 98 units of novi, in Mong Kok, were sold in one day, representing a strong demand for small units.

Secondary market remained quiet
Over the past weekend, Centaline Property Agency only recorded 3 transactions in the 10 major estates, slashed 57% compared to the 7 cases at previous weekend. Midland Realty reported 4 transactions, down 50% w-o-w; Hong Kong Property reported 3 transactions, up 1 transaction w-o-w; Ricacorp Properties reported 5 transactions, down 3 transactions w-o-w.

861 industrial and retail registrations in Jul
According to the Land Registry, a total of 861 industrial and retail registrations were recorded last month, rose 5% m-o-m and was the second highest level of the year. Total consideration was HKD 9.874 billion, up 22% m-o-m. Industrial registrations accounted for 601 cases, or nearly 70% of overall industrial and retail registrations.

HKEx rent 3 floors of Exchange Square
It is reported that 3 low-floors of Two Exchange Square, Central, with a total area of 42,000 sq ft, have been leased to Hong Kong Exchanges and Clearing Limited (HKEx) for HKD 130 per sq ft. For the sake of business expansion, HKEx leased office spaces of Exchange Square for two times during the year, totaling 6 floors, with an area of 80,000 sq ft.

(Sources: Vigers Research and market news)

9,787 mortgages on completed properties in July
According to market data, 9,787 mortgage loans on completed properties were reported in July, down 2.3% compared to the 10,010 cases in June. Total number reached 58,500 cases in the first 7 months of the year, rose 63% y-o-y. Whilst the number of equitable mortgage loans rose 26% m-o-m to 751 cases in July, or 5,677 cases in the first 7 months of the year, up 73% y-o-y, and setting a 13-year high.

New World Development sold 1,194 flats for HKD 11.3 b
3 new projects have been launched by New World Development since the start of the year, including the inventories left by other new launches, around 1,200 units were sold, cashing in over HKD 11.3 billion. The consideration reached a 3-year new high for the group. Another 3 new projects are scheduled to put up for sales in the second half of the year, involving over 300 units.

Zing in Causeway Bay transacted for HKD 2.1 b
It is reported that the entire Ginza-style commercial building, Zing, located at 38 Yiu Wa Street, Causeway Bay, has been sold for HKD 2.1 billion by CLSA Ltd, making a book profit of HKD 500 million in 3 years. It is a 27-storey building with a GFA of about 79,051 sq ft. All units are currently leased out and the tenants include specialty restaurants, Karaoke, etc.

Pok Fu Lam’s flat rent by mainland student for HKD 18,000
Charmview Court in Pok Fu Lam is attractive to student tenants as the location is close to the University of Hong Kong. It is reported that Flat A, High-Floor, Charmview Court, a 2-room unit with a saleable area of 288 sq ft, has been leased to a mainland student for HKD 18,000 per month, or HKD 63 per sq ft of saleable area.

(Sources: Vigers Research and market news)

Retail performance getting stable
The Census and Statistics Department announced that the value of total retail sales in June 2017 was HKD 33.7 billion, edged up 0.1% y-o-y. After netting out the effect of price changes over the same period, the volume of total retail sales slightly grew by 0.4% y-o-y. Falls of value and volume of total retail sales narrowed down to 0.6% and 0.8%, respectively, in 1H2017.

Property transactions down 30% last month
According to the Land Registry, a total of 5,461 property registrations were recorded in July, down 30.9% m-o-m. The decrease was caused by the mortgage tightening measures, coupled with tight supply and aggressive ask price from owners. However, it is believed that the number of registrations will increase this month.

Goldin Financial Global Centre leased at HKD 25 psf
It is reported that two entire floors of Goldin Financial Global Centre, Kowloon Bay, with a GFA of 70,000 sq ft, have been leased out for HKD 25 per sq ft. The new tenant is Otis Elevator Company, a global company that manufactures elevators, escalators and moving walkways. Leasing of new office can enhance business integration and save rent as currently Otis has multiple offices in Hong Kong.

A shop in Tsuen Wan transacted for HKD 52 m
According to market news, Shop D, G/F, 69-77 Chuen Lung Street, Tsuen Wan, with an area of 900 sq ft, has been transacted with tenancy for HKD 52 million, or HKD 57,777 per sq ft. The shop is currently leased to a shoe shop for HKD 135,000 per month, and the rental return for new buyer is about 3%.

(Sources: Vigers Research and market news)

Number of estate agent first reached 38,000
According to the Estate Agents Authority’s statistics, there were 38,042 estate agent’s licences issued as at 31st July, 228 individuals more than the June’s figure. The figure has been rising for three consecutive months, with a cumulative growth of 2% or 736 individuals. 52 new statements of Particulars of Business were issued during the month, representing an increasing number of branches.

Causeway Bay’s C. C. Lodge applied for redevelopment
The Town Planning Board has received a redevelopment application of C. C. Lodge, 56 Tai Hang Road, Causeway Bay, from a financial group recently. Single block with 19 mid-to large-sized units is proposed to build. The property is a 4-storey building owned by the family of C.C. Wu, with a plot area of 7,539 sq ft.

Ownership share of Kwun Tong building sold for HKD 1 b
Cheung Fai Industrial Building, located at 133 Wai Yip Street, Kwun Tong, has been transformed to a commercial building through industrial revitalisation. The property has a GFA of 190,000 sq ft and it is owned by GAW Capital Partners. It is reported that 50% ownership of the building has been sold to a foreign fund, silkroad, for HKD 1 billion, or HKD 10,000 per sq ft.

Giant shop in Tuen Mun sold for HKD 200 m
According to market news, Shop 1, G/F & 1/F-4/F, Far East Consortium Tuen Mun Building, 2 Yan Oi Tong Circuit, Tuen Mun, with a GFA of 27,100 sq ft, have been transacted for HKD 200 million, or HKD 7,380 sq ft. The monthly rental of the shop is HKD 500,000. New buyer is expected to earn a 3% rental yield.

(Sources: Vigers Research and market news)

Sales in major estates remained low over weekend
Secondary residential market remained quiet. Over the past two days, Centaline Property reported 7 transactions in the 10 major estates, increased by one case on a weekly basis. Among which South Horizons and Kingswood Villa accounted for 2 transactions respectively. Meanwhile, Midland Property said that there was no transaction recorded in half of the 10 major estates.

1,200 new flats awaiting for sale in Aug
At least 6 new housing projects will be launched in August, involving about 1,200 units. According to market sources, novi, a small-scale housing project in Mong Kok developed by Lai Sun Group, received over 600 applications since its launch from last week. It was oversubscribed by 9 times.

A shop at Burrows Street transacted for HKD 55 m
It is reported that Street Shop, Bel Trade Commercial Court, 3 Burrows Street, Wan Chai, with an area of 1,290 sq ft, has been transacted for HKD 55 million, or HKD 42,600 per sq ft. The shop has been leased to a cart noodles restaurant at HKD 150,000 per month. The rental return is about 3.27%.

Mid-Floor of Highcliff sold for HKD 145 m
According to market news, Flat A, Mid-Floor, Highcliff, Mid-Levels East, with a saleable area of 2,739 sq ft and 3 parking spaces, have been sold for approximately HKD 145 million, or HKD 53,000 per sq ft. The original owner purchased the unit at HKD 81.1 million in 2007, making a book profit of HKD 63.9 million, or appreciated 80%.

(Sources: Vigers Research and market news)

Value of HK exports rose 11% in June
The Census and Statistics Department yesterday announced that, in June, the value of Hong Kong’s total exports of goods increased by 11.1% y-o-y to HKD 329.4 billion, outperformed the market expectation of 6.4%. The value of re-exports increased by 11.2% to HKD 325.7 billion, whilst the value of domestic exports increased by 2.4% to HKD 3.7 billion.

SRPA: Complaints of new launches slashed 50% in half year
The Sales of First-hand Residential Properties Authority (SRPA) announced that a total of 17 complaints were received in 1H/2017, slashed 53% y-o-y. Complaints about Advertisements accounted for 5 cases, followed by Sales Arrangements with 4 cases. On the other hand, number of enquiries rose approximately 11% y-o-y to 631 cases.

A shop at Dundas Street transacted for HKD 84.1 m
According to the Land Registry’s data, Street Shop, 37 Dundas Street, Mong Kok, with an area of 2,180 sq ft, has been transacted for HKD 84.1 million, or HKD 38,500 per sq ft last month. The transaction is registered under the name of MAXLINK (HONG KONG) LIMITED and the Director of the Company is Lam Hiu-ngai, founder of Kai Bo Food Supermarket.

39 Conduit Road sold to a company at HKD 125 m
According to the Land Registry’s data, Flat A, High-Floor, 39 Conduit Road, Mid-Levels West, with an area of 2,476 sq ft, has been transacted for HKD 125 million, or HKD 50,300 per sq ft earlier this month. The transaction is registered under the name of a company. It was required to pay the 30% Ad valorem stamp duty and Buyer’s Stamp Duty, amounting HKD 37.39 million.

(Sources: Vigers Research and market news)