News Room – Daily Property News

SHK Properties wins Cheung Sha Wan hotel land at HKD 5.06 b
Tender of a hotel land located off Hing Wah Street West, Cheung Sha Wan was closed last Friday and it has been awarded to Sun Hung Kai Properties at HKD 5.06 billion, 35% higher than the upper-end of market valuations and setting a new high for the hotel site launched in land sale programmes since 2011. The A.V. of the site amounted to HKD 13,520 per sq ft.

HKHS launches 2 subsidized housing projects
Hong Kong Housing Society yesterday rolled out two subsidized housing projects, Mount Verdant in Tseung Kwan O and Terrace Concerto in Tuen Mun, providing 620 flats in total. The size of the flats range from 271 sq ft to 684 sq ft of saleable area. The flats will be sold at 30% discount to market prices with a minimum selling price of HKD 1.92 million. Application forms will be distributed from today and applications will be accepted on 7-20 November.

Michael Wong: Land exchange requires full premium
Henderson Land has planned to alter the land use of Tsiu Hang, Tai Po in exchange for a government land for developing private housing projects, while a part of the land can be used for public housing development. Michael Wong, Secretary for Development said relevant land has not received any application for land exchange. In case of any applications, applicant is required to pay a full land premium at market price in accordance with current procedures.

Street shop on Ashley Road sold to CSI Properties at HKD 138 m
According to the Land Registry, Street Shop, 21A Ashley Road, Tsim Sha Tsui, has been sold to CSI Properties at HKD 138 million this month. Some part of the ownership on 1/F also have been transacted for HKD 20 million during the month. So far the developer has already acquired 83.3% ownership share of the building. Compulsory sale of the property is approved with a reserve price of about HKD 353 million,

(Sources: Vigers Research and market news)

Transactions in secondary market increase
Transactions in secondary market increased over the weekend despite Saturday was the Chung Yeung Festival. Around 6 to 16 transactions were reported by each of the 4 major estate agencies at the 10 major estates. Of which, Ricacorp reported 16 transactions, doubled from last weekend and setting a 26-week high.

171 new homes sold over weekend
According to property sales website and market news, about 171 units of new homes were sold over the weekend as at 6:30pm yesterday, falling more than 30% from last week’s 257 units. Wings at Seas II rolled out 131 units during the second-round sales yesterday, 96% or 126 units of which were sold out. All units were expected to be sold out last night.

Govt incentives to encourage industrial redevelopment
A study on the policy of industrial revitalization has been conducting by Development Bureau. In order to encourage redevelopment of existing industrial buildings, Development Bureau decides to provide more incentives to the owners. Relevant policies will be discussed with policy bureaux and the industry, said by Michael Wong. The study is expected to be completed by mid-2018.

TOPSHOP renewed lease in Central
According to market sources, the leasing agreement of G/F & 1/F, Asia Standard Tower, Queen’s Road Central, Central, has been renewed by TOPSHOP at HKD 1.5 million per month or HKD 125 per sq ft for 3 years, 50% lower than the previous rent. It is the flagship store of TOPSHOP with an area of about 12,000 sq ft.

(Sources: Vigers Research and market news)

Total exports value up 9.4% in Sep
The value of Hong Kong’s total goods exports rose 9.4% y-o-y in September, while that of goods imports increased 9.7% y-o-y, announced by the Census & Statistics Department. Both figures accelerated 2% monthly. During the first 9 months, total goods exports rose 8.5% y-o-y, while that of imports up 8.8% y-o-y. A visible trade deficit of HKD 338 billion, equivalent to 10.7% of the value of goods imports, was recorded.

MTR invites EOIs for Wong Chuk Hang Station Package 2
MTR Corporation will begin the invitation of expression of interests (EOIs) for its Wong Chuk Hang Station Package 2 property development project from 27 October to 2 November. Two residential buildings with about 600 flats are expected to be built on the site by 2023. Market valuations of the site range from HKD 8.87 billion to HKD 10.35 billion, with an A.V. of HKD 18,000 to HKD 21,000 per sq ft.

RICS: Q3 office vacancy rate down to 11%
According to Royal Institution of Chartered Surveyors (RICS), the office vacancy rate in Hong Kong declined from 17% in Q2 to 11% in Q3, representing a solid demand from foreign firms. Sean Ellison, Senior Economist of RICS, expects the Grade A office prices will up 5.4% further in the coming year.

Villa in Manderly Garden sold for HKD 180 m
A big-ticket sale was recorded in the Southern District. An Even No. House, Manderly Garden, Deep Water Bay, with an area of 3,200 sq ft, has been transacted for about HKD 180 million or HKD 56,250 per sq ft. The original property owner purchased the villa reportedly at HKD 118 million in 2012, making a book profit of HKD 62 million.

(Sources: Vigers Research and market news)

Over 2,000 nano flat completions in 4 years
The market expected a total of 2,055 nano flats (with a saleable area of less than 200 sq ft) will be built during 2017 to 2020. The completions will rise to 839 units during 2019, equivalent to 4% of total new home supply. However, the number will decline to 236 units in 2020 and accounting for less than 1% of total new home supply of 24,600 units in private market.

Secondary registrations reaching 5-year high
According to market data, a total of 35,500 second-hand residential properties registrations were recorded as at October 24 this year. The figure is 12.2% lower than the 40,500 cases in last year. Whilst the consideration over the same period amounted to HKD 242.22 billion, already surpassed the last year record of HKD 241.54 billion as a whole. The annual record of 2017 is expected to reach HKD 290 billion and set a 5-year high.

Street shop on Hip Wo Street sold for HKD 55,700 psf
It is reported that Shop B, G/F, Yen Fu Mansion, 121-141 Hip Wo Street, Kwun Tong, with an area of 700 sq ft, has been changed hands for HKD 39 million or HKD 55,714 per sq ft. The original owner purchased the property at HKD 100,000 in 1970, making a book profit of HKD 38.9 million in 47 years. The property appreciated 389 times.

High-floor unit of Trafalgar Court transacted for HKD 91.8 m
According to the Land Registry, Flat A, High-Floor, Trafalgar Court, Tai Hang, with a saleable area of 2,465 sq ft and two parking spaces, was transacted for HKD 91.8 million or HKD 37,200 per sq ft last month. The registered name of the buyer, Cheung Chi Lam Julian, is reportedly a local movie star.

(Sources: Vigers Research and market news)

15,000 private flats under construction in first 8 months
A total of 7 private residential projects involving 1,646 units commenced work in August, based on the notification of commencement of general building and superstructure work received by the Buildings Department. The figure surged 91% compared with 863 units in July. The accumulated number in the first 8 months reached 15,000 units, up 20% y-o-y and hit a 17-year high over the same period.

Rent of major estates sees first decline
The weighted average rent of the city’s 50 major housing estates edged down 0.3% m-o-m to HKD 35.05 per sq ft in September, ending the uptrend over the past 18 months, according to an estate agency’s statistics. Cumulative growth was less than 0.3% in the third quarter, way slower than 4.1% in the second quarter.

Blackstone Group, KKR on LINK REIT’s list for assets disposal
LINK REIT intends to sell a part of its Hong Kong retail assets in end November to Blackstone Group, KKR, GAW Capital Partners and some Mainland-funded consortia who are included in the potential bidding list, Reuters quoted from sources yesterday, as reporting. The valuation of assets amounts to approximately HKD 15 billion.

The Beverly Hills sold with a HKD 6 m loss
According to market sources, Odd No. House, Boulevard Du Palais, The Beverly Hills, Tai Po, with a saleable area of 1,902 sq ft, has been changed hands for HKD 19.8 million, similar to current market levels. The original owner purchased the villa at HKD 24.54 million in 2011, making a book loss of HKD 4.74 million. The actual loss was about HKD 6 million if including the stamp duties, agency commission and miscellaneous expenses.

(Sources: Vigers Research and market news)

Inflation slow down to 1.4% in Sep
Overall consumer prices rose 1.4% y-o-y in September, according to the Census & Statistics Department. Netting out the effects of the Government’s one-off relief measures, the underlying inflation rate was also 1.4%, lower than the previous month of 1.9%. The department said the easing of the underlying inflation rate was due to dissipation of the effect from upward adjustment in public housing rentals last year, and the decreases in school fees under new subsidy schemes.

Buildings Dept approved 29 building plans in Aug
The Buildings Department approved 29 building plans in August, setting a new high since March 2014. Of the approved plans, 14 were for apartment and apartment/commercial developments, 5 were for commercial developments, 4 were for factory and industrial developments and 6 were for community services developments.

COSCO Tower Sheung Wan sold for HKD 32,500 psf
According to market news, Units 13A-15, Mid-Floor, COSCO Tower, Sheung Wan, with an area of 2,350 sq ft, has been transacted for HKD 76.37 million or HKD 32,500 per sq ft, setting a new high for the building in terms of unit rate. The units have been leased to a securities firm for HKD 128,000 per month, representing a yield of 2%. The new buyer is said to be DCHL.

Retail rent of Chungking Mansions slashes 60%
It is reported that Shop 2, G/F, Chungking Mansions, 36-44 Nathan Road, Tsim Sha Tsui, with a GFA of 1,000 sq ft, has been leased out at HKD 400,000 per month or HKD 400 per sq ft, after being unoccupied for over two years. The new rent is approximately 62% lower than the previous one.

(Sources: Vigers Research and market news)

Tender for Hing Wah Street West site close Friday
A number of non-residential sites are included in the 2017-18 Land Sale Programme. A Cheung Sha Wan waterfront site designated for hotel purpose will be disposed of by public tender. It is expected to attract local developers and market valuations range from HKD 2.17 billion to HKD 3.74 billion. The tender invitation will close this Friday (Oct 27).

Transactions in secondary market doubled
The 10 major estates posted 34 secondary transactions over the weekend, up 18 cases or 112.5% compared with the previous weekend’s 16 cases. Previous weekend record was dragged down by the typhoon signal No. 8. The statistics from the 4 major estate agencies including Midland, Centaline, Hong Kong Property and Ricacorp, all showed an uptrend.

New home sales remain red-hot
According to property sales website and market news, around 257 units of new homes were sold over the weekend as at 8pm yesterday, close to the figure from last week. Of which, the first batch of Sun Hung Kai Properties’ Wings At Sea II in Tseung Kwan O, involving 227 units, all have been sold out reportedly within a day.

Villa at Deerhill Bay transacted for HKD 120 m
It is reported that an Even No Villa, Deerhill Path, Deerhill Bay, Tai Po (with a saleable area of 4,532 sq ft, a 5,127-sq-ft garden and a private swimming pool) has been transacted for HKD 120 million. The unit price of HKD 26,478 per sq ft achieved a new high for the estate. The highest asking price of the villa hit HKD 148 million.

(Sources: Vigers Research and market news)

3,700 new homes put up for sale
The price list of Henderson Land’s single block project in Quarry Bay, NOVUM EAST, will release today at the earliest, providing 93 units in the first batch. CITIC Pacific’s luxury project in Ho Man Tin, KADOORIA, and Sun Hung Kai Properties’ Victoria Harbour will soon be available as well. Including the earlier sale of WINGS AT SEA II (1,132 units) and the first round sale of Cheung Kong’s My Central today (185 units), a total of 3,700 new homes have been scheduled for sale.

146 retail property transactions in Sep
According to the Land Registry, 146 retail property transactions were registered in September this year, up 22% compared with 120 transactions in August and reached a 3-month high. Total consideration slashed 36% m-o-m to HKD 1.882 billion during the period. It was dragged by the decrease of high price deals.

Ping An Bank rents Exchange Square for HKD 160 psf
It is reported that an entire high-floor of Exchange Square, Central, with an area of 12,000 sq ft, has been leased to Ping An Bank for HKD 160 per sq ft. The rental level is relatively high as the office is close to the top-floor. Previous office of Ping An Bank was located in Bank of America Tower in the same district, current move is an office upgrade.

Star Seafood Floating Restaurant close this month
According to market sources, the whole block of Star Seafood Floating Restaurant, 55-57 Tai Chung Kiu Road, Sha Tin, has been leased to a new tenant for HKD 1.15 million with a rent cut of around 30%. The property was originally leased to Star Seafood Restaurant (Group) at HKD 1.6 million per month but the leasing agreement has not been renewed. The new tenant is also a restaurant.

(Sources: Vigers Research and market news)

98.7% private home transactions make money
According to market data, a total of 5,315 private home transactions where the vendor has made a book profit were recorded in Q3/2017, making up for 98.7% of all transactions with known previous purchase prices. The ratio of profit-making transactions edged up 0.2% quarterly and reached an 8-quarter high since Q3/2015.

Total consideration for luxury homes dipped in Q3
The Peak and Southern District recorded 33 second-hand transactions and 2 first-hand transactions in Q3/2017, with the consideration of HKD 2.58 billion and HKD 1.265 billion respectively, according an estate agency’s statistics. Transaction volume was up by 3.1% q-o-q whilst the total consideration dropped by more than 30% as there were no land lot sales during the period.

Entire floor of Silver Fortune Plaza transacted for HKD 115 m
An entire mid-floor of Silver Fortune Plaza, 1 Wellington Street, Central, with an area of 4,397 sq ft, has been changed hands reportedly for HKD 115 million or HKD 26,154 per sq ft. The estate agent said the average rent is HKD 32 per sq ft, representing a yield of 1.6% to the new buyer. The original owner purchased the property at HKD 78.27 million in 2015, making a book profit of HKD 36.73 million in 2 years.

Street shop on Sai Yeung Choi Street South sold for HKD 250 m
It is reported that Shop D, G/F, 4 Sai Yeung Choi Street South, Mong Kok, with an area of 650 sq ft, has been sold for HKD 250 million by an experienced investor, WAN Pak Kuen, or his related party. The transaction price of HKD 385,000 per sq ft was satisfactory. The original owner purchased the unit at HKD 138 million in 2007, earning a book profit of HKD 110 million in 10 years.

(Sources: Vigers Research and market news)

Using government land to expand HKCEC
As a long term plan when the reprovisioning of the Wan Chai Sports Ground is resolved, the Government’s 3 buildings near the Convention & Exhibition Centre will be redeveloped into a new wing that can be integrated with the existing convention centre. Kwong Wan Fire Station on Harbour Road, with a site area of 25,000 sq ft, will also be included in the project, providing about 2.18 million sq ft of commercial area to the district.

Henderson Land unified ownership of Feng Fong Building
Feng Fong Building, 73-73E Caine Road, Mid-Levels West, was put on compulsory sale yesterday. Henderson Land successfully unified the ownership of the building at HKD 1.04925 billion. It is a seven-storey building aged 61 years, the ground floor is retail space whilst the remaining floors are residential units. The project has a site area of 7,557 sq ft and is expected to redevelop as a composite building to provide 160 residential units.

Link REIT selected 6 bidders for second-round tender
Link REIT’s 17 shopping centres have been put up for sale by tender earlier this month. At least 6 bidders are selected for second-round tender, including REITs (Real Estate Investment Trust) and foreign funds. The tender invitation will close next month and the result will be released by end of the year.

The Cube’s subdivided shop sold at a loss
According to the Land Registry, a 96-sq-ft subdivided shop, Shop F19&F20, 1/F, The Cube, Hoi Pa Street, Tsuen Wan, has been transacted for HKD 810,000. The original owner purchased the property at HKD 3.264 million in 2014, making a book loss of HKD 2.454 million or 75%.

(Sources: Vigers Research and market news)