News Room – Daily Property News

The Center rumored to be sold for HKD 40.2 b
Cheung Kong Holdings is reportedly selling 75% interest of The Center office tower, for a record price of HKD 40.2 billion or HKD 33,000 per sq ft. It is also said that the buyer is a consortium headed by a mainland oil company and include one or two Hong Kong investors. Justin K H Chiu, Executive Director of Cheung Kong Holdings, yesterday responded that an official announcement will be made once the sale is confirmed.

14 land deals with premium over HKD 6.8 b in Q3
The Lands Department announced that 8 lease modifications and 6 land exchanges, totaling a premium of HKD 6.77 billion, were registered during the quarter ending September 2017. Among these 14 transactions, 6 are located on Hong Kong Island, 2 are in Kowloon and 6 are in the New Territories. The transactions exclude Small House cases.

Housing rent trended up 6% in 3 quarters
According to a market report, overall housing rent in Hong Kong already trended up 6% in the first three quarters of the year, higher than the growth of 1.6% over the same period a year ago. In the fourth quarter, the rent will continue to stay at a high level, getting close to HKD 36 per sq ft of saleable area for the 107 major estates, and expecting an 8% full-year growth.

Causeway Bay shop leased to Lao Feng Xiang at HKD 660,000
It is reported that Shop 32, G/F, JP Plaza, 22-36 Paterson Street, Causeway Bay, with a GFA of 1,800 sq ft, has been leased to Lao Feng Xiang at HKD 660,000 per month or HKD 367 per sq ft. Previous tenant was a handbag shop with a monthly rental of about HKD 1 million. The new rent is lower than the old one by 34%.

(Sources: Vigers Research and market news)

Only 3 secondary transactions posted at weekend
Secondary sales were affected by the typhoon over the weekend. Only 3 transactions were recorded in the 10 major housing estates over the past 2 days, slashed about 63% from 8 transactions a week earlier, according to Centaline’s statistics. Mei Foo Sun Chuen in Lai Chi Kok and Kingswood Villa in Tin Shui Wai accounted for 1 and 2 transactions respectively.

Sublease subsidised housing with unpaid premium
Chief Executive Carrie Lam, in her Policy Address, suggested to allowing landlords to sublease the Hong Kong Housing Society (HKHS)’s subsidised housing with unpaid premium to families in need, involving 9,000 units and the rent will set below market level. Wu Moon-hoi, Chairman of HKHS, said there are 16,000 eligible units and trial scheme can commence in the second half of next year at the earliest.

Industrial transactions reached 4-year high in Q3
According to market data, a total of 1,496 industrial transactions were registered in the last quarter, increased for 2 consecutive quarters and achieved a 4-year new high. Total consideration amounted to around HKD 9.991 billion, down 6% q-o-q. The whole year’s record is expected to reach 5,000 transactions and comes to a 5-year high.

Tiffany pre-leased a giant shop on Peking Road
It is reported that a duplex retail unit with a GFA of 3,549 sq ft, Shops G8 & 108, G/F & 1/F, 1 Peaking Road, Tsim Sha Tsui, has been pre-leased by Tiffany & Co. at HKD 6.48 million per month or HKD 1,826 per sq ft. It is the largest retail leasing transaction this year.

(Sources: Vigers Research and market news)

6 land plots in Tuen Mun may rezone to residential
Planning Department has recently suggested rezoning 6 land plots in Tuen Mun for residential usage, involving nearly 11,700 units. 5 land plots will be used for public rental housing to provide 10,730 units, accounting for 92% of overall supply. The first batch of units will be available in 2023 at the earliest. The Town Planning Board will discuss about the related District Outline Zoning Plan today.

Slower uptrend in secondary home prices
According to an estate agency’s statistics, 477 transactions were recorded in the 50 major estates in September. The weighted average price was about HKD 13,400 per sq ft of saleable area, edged up 0.5% compared with HKD 13,300 in August and hitting new highs for 8 straight months. However, the quarterly increase has been slowed down from 5.3% in Q2/2017 to 1.2% in Q3/2017.

Central grade A office rent reached HKD 126 psf
According to market data, rent of Central’s super grade A offices reached HKD 139.9 per sq ft per month in Q3/2017, up 0.5% q-o-q or 5.7% y-o-y. Whilst the grade A office rent in the district was HKD 126.6 per sq ft, up 0.5% q-o-q or 6.6% y-o-y. Both super grade A and grade A office rents have climbed to historic highs and the market foresees a further increase.

Street shop on Kau Yuk Road transacted for HKD 115 m
It is reported that Shop B, G/F, 36-42 Kau Yuk Road, Yuen Long, with an area of about 800 sq ft, has been sold to an experienced investor for HKD 115 million or HKD 144,000 per sq ft. The property was transacted with vacant possession. Market rent is about HKD 250,000 to HKD 260,000 per month, representing a yield of around 2.6%.

(Sources: Vigers Research and market news)

Starter homes will provide 1,000 units next year
Chief Executive Carrie Lam, in her first Policy Address, said the first batch of starter homes will provide about 1,000 flats and there will be income restrictions for applicants. Income limit for a 2 persons family will be HKD 52,001 – HKD 68,000. Pilot programme will be introduced by end of next year and the land plot at Anderson Road, Kwun Tong under the Land Sales Programme is selected.

Revenue from “spicy tricks” rose 14% in Sep
The Inland Revenue Department announced that tax revenue from the 3 “spicy-trick” stamp duties totaled HKD 2.24 billion in September, rose 14% compared with HKD 1.96 billion in August. Transactions related to non-local and business buyers, Buyer’s Stamp Duty (BSD), increased 38% m-o-m to 450 cases, reaching a 10-month high since the record of 494 cases in November last year.

Wheelock’s 8 Bay East sold to PRC developer at HKD 9 b
Wheelock announced yesterday that its subsidiary The Wharf (Holdings) has sold a non-residential project, 8 Bay East, to LVGEM CHINA at HKD 9 billion or HKD 15,095 per sq ft. It has been the most expensive en-bloc commercial transaction in Kowloon. The project with a GFA of about 596,200 sq ft is located at 123 Hoi Bun Road in Kwun Tong. It is still under construction.

Giant shop in Holiday Inn Golden Mile subleased
Rental downtrend persists in prime districts. A 3,200-sq-ft giant shop located on the G/F, Holiday Inn Golden Mile, Tsim Sha Tsui had been leased to Chow Tai Fook previously. The shop is now being subleased to two watch and jewelry stores with a total rent of HKD 1.5 million, 60% lower than the previous rent.

(Sources: Vigers Research and market news)

Tender of Graham Street Project closing today
Tender for Development of Urban Renewal Authority (URA)’s Peel Street/Graham Street Project (Site C) is closing today. The project covers a commercial GFA of approximately 433,500 sq ft and market valuations range from HKD 8.237 billion to 13 billion. It might be the most expensive URA project in history. It is said that the site will be awarded to the highest bidder according to free market mechanism.

372 new homes sold over weekend
According to first-hand sales website and market news, about 372 units were sold at weekend for the new projects in the city as at 8pm yesterday. Wings at Sea launched by Sun Hung Kai Properties accounted for 328 units. By far the project has already sold out 760 units and cashing in more than HKD 6 billion.

Secondary sales dropped 46% w-o-w
According to Centaline’s statistics, only 8 transactions were recorded in the 10 major estates over the past two days (Oct 7 – Oct 8), down 46.7% w-o-w. Kingswood Villas in Tin Shui Wai reported the most transactions of 3 cases, followed by 2 cases in Whampoa Garden, Hung Hom. No transaction was recorded in five estates.

Maxwell Industrial Building in Kwun Tong sold for HKD 1.39 b
It is reported that Maxwell Industrial Building, at 350 Kwun Tong Road, Kowloon, with an estimated GFA of 230,200 sq ft, has been sold to LAWSGROUP at HKD 1.39 billion or HKD 6,039 per sq ft. It will be redeveloped as a commercial building with reference to D2 Place in Cheung Sha Wan, turning it to a cultural and creative landmark in Kowloon East.

(Sources: Vigers Research and market news)

Land use of Water Supplies Dept to be rezoned
The government has planned to vacate the office building of Water Supplies Department at 611 King’s Road, North Point for changing usage to business development. New office of Water Supplies Department will be located in Chai Wan and completed construction in 2024, meaning that the land plot in North Point can be released for business development in 7 years at the earliest. The project will cover a GFA of 760,000 sq ft, with a valuation of over HKD 10 billion.

2,276 industrial and commercial transactions in Q3
According to market data and the Land Registry’s records, 2,276 industrial and commercial transactions were recorded in Q3/2017, down 11.2% q-o-q but reached the second highest level in 18 quarters. Total consideration amounted to HKD 25.506 billion. Of which, industrial transactions accounted for 65.7% and 39.2%, in terms of transaction volume and value respectively.

Street shop on Cheung Sha Wan Road sold for HKD 36.8 m
According to market sources, Shop B, G/F, Asian Building, 254-258 Cheung Sha Wan Road, Shum Shui Po, with an area of 850 sq ft, has been transacted for about HKD 36.8 million or HKD 43,300 per sq ft. The shop is currently leased to Tong Ren Tang at HKD 90,000 per month, providing a 3% yield to the new buyer.

Baguio Villa gained HKD 14 m in 10 years
It is reported that Flat C, Mid-Floor, Block 27, Baguio Villa, Pok Fu Lam, has been changed hands for HKD 23 million or HKD 17,504 per sq ft of saleable area. It is a 3-bedroom unit with a saleable area of 1,314 sq ft. The original property owner purchased the unit at HKD 9 million in April 2007, making a book profit of HKD 14 million or 160% in around 10 years.

(Sources: Vigers Research and market news)

First industrial land sale in Tsuen Wan over 31 years
The government introduced last week an industrial site at Ma Kok Street, Tsuen Wan for the upcoming land sale programme. It is the first industrial site in Tsuen Wan put up for land sale in 31 years. Market valuation ranges from HKD 500 million – 900 million. Industrial prices in Tsuen Wan East are expected to rise in a synergy with a number of new housing projects in the district.

Mortgage registrations declined in Sep
According to the Land Registry’s statistics, 713 equitable mortgages were registered in September, down 43% m-o-m. While mortgages on completed properties has dropped 14% m-o-m to 7,800 cases. Not many large-scale projects were launched during the period and the market expects registrations will rebound in the coming few months.

Number of estate agent reached 38,300
According to the Estate Agents Authority’s statistics, there were 38,294 estate agent’s licences issued as at Sep 30, 130 individuals more than the August’s figure. It has been rising for 5 consecutive months, with a cumulative growth of 2.6% or 988 individuals. The number of overall property transactions was 7,525 in September, meaning that 5 agents were competing for 1 transaction.

Silvercord transacted for a new high HKD 22,000 psf
It is reported that Unit 9, 16/F, Silvercord Tower 2, 30 Canton Road, Tsim Sha Tsui, with a GFA of 1,443 sq ft, has been transacted for HKD 32 million or HKD 22,200 per sq ft, setting a new high for the building in terms of unit rate. The original property owner purchased the unit at about HKD 18.5 million in 2012, making a book profit of HKD 13.5 million or 73%.

(Sources: Vigers Research and market news)

Over 440 new homes sold over weekend
According to first-hand sales website and market sources, 441 units were sold during weekend and the day following National Day (Sep 30 – Oct 2) for the new projects in the city as at 8pm yesterday. Among which, all 403 units of the first batch of Wings At Sea in Tseung Kwan O, were sold out on Saturday, according to the register of transactions.

693 industrial and commercial transactions in Aug
According to an estate agency’s statistics, a total of 693 industrial and commercial transactions were registered in August 2017, fell 18% m-o-m compared to 849 cases in July and setting a 5-month low. (The figure mainly reflects the actual market condition over the past 2–4 weeks) 5,971 transactions were registered in the first 8 months, almost doubled the record of 3,009 cases over the same period a year ago.

Industrial Bank pre-leased One IFC
A notable office leasing transaction was recorded in One IFC, Central. The entire 10/F to 12/F, with an area of 20,000 sq ft on each floor, totaling an area of 60,000 sq ft, have been leased out at HKD 150 per sq ft. The rent is close to the market level. It is said that the new tenant is Industrial Bank, a major bank in PRC.

Wong Chuk Hang industrial building sold to Rykadan Capital at HKD1.48 b
It is reported that the whole industrial block of BT Center, 23 Wong Chuk Hang Road, Southern District, has been sold to Rykadan Capital or its related party for HKD 1.48 billion. Based on the redevelopment GFA of 107,000 sq ft, the A.V. is about HKD 13,800 per sq ft, similar to the price of new offices in the same district.

(Sources: Vigers Research and market news)

Rental of HK grade A office ranks 1st in world
According to a market report, annual rent of Hong Kong’s super grade A offices reached USD 304 per sq ft in Q2/2017, namely about HKD 198 per sq ft per month. The rent was up by 9% over the same period a year ago and ranked the highest in the world for 4 straight years. The rent is expected to rise 10% more in the coming 3 years.

2 old buildings on HK Island seek for compulsory sale
The Lands Tribunal has approved 5 applications of compulsory sale in the recent two months and those auditions have been arranged in accordance with court judgement. Cheung Lok Mansion in Wan Chai and 11&13 Matheson Street in Causeway Bay will put on compulsory sale today with the reserve price of HKD 2.061 billion in total.

Street shop on Nathan Road transacted for HKD 217 m
It is reported that Shop 5, G/F, Mirador Mansion, 54-64B Nathan Road, Tsim Sha Tsui, with an area of about 1,000 sq ft, has been transacted at HKD 216.8 million with vacant possession. Currently the shop is put up for lease with another shop on 1/F, with a total leasable area of 1,400 sq ft. The asking rent is HKD 650,000 per month, 23% lower than the previous rent.

Mid-floor unit of Lions Rise sold for HKD 1.2 m loss
According to market sources, Flat A, Mid-Floor, Lions Rise Tower 2, Wong Tai Sin, with a saleable area of 1,123 sq ft, has been changed hands for HKD 17.4 million. The original property owner purchased the unit at HKD 18.59 million in 2013, representing a book loss of HKD 1.2 million in 4 years.

(Sources: Vigers Research and market news)

URA’s Mong Kok project receives 41 Expressions of Interest
The Urban Renewal Authority (URA) received a total of 41 Expressions of Interest for the redevelopment of the Reclamation Street/Shantung Street project in Mong Kok yesterday, setting the second highest number of applications received in history. The project has a site area of 15,000 sq ft and is expected to provide 187 residential units plus a 22,400 sq ft of commercial GFA.

Unsuccessful tendering of The Excelsior
Mandarin Oriental International announced yesterday that it has examined the proposals of the acquisition of The Excelsior, Causeway Bay but they were not up to expectations and transaction requirement. The company will continue to review other options, including a redevelopment of the hotel into a commercial building at the same location.

Villa on Bowen Road sold for HKD 400 m via equity transfer
According to market sources, a villa on Bowen Road, Mid-Levels, Hong Kong Island, has been changed hands via equity transfer. The transaction price was about HKD 400 million, or HKD 85,000 per sq ft with a saleable area of 4,680 sq ft. The previous villa transaction in the same district was already three years ago and the transaction price was about HKD 450 million for a villa on the same street.

Office leased out after industrial revitalisation
Kwai Hing Industrial Building, owned by foreign funds, has been transformed to an office building named EDGE through industrial revitalisation. Three and a half floors of the building have been leased out. The 2/F to 4/F with a GFA of 75,000 sq ft have been leased to DHL, whilst another logistic company leased a half floor. The asking rent of the remaining three and a half floors is about HKD 24 – HKD 25 per sq ft.

(Sources: Vigers Research and market news)