News Room – Daily Property News

SHK Properties submitted tender for The Excelsior
The Excelsior in Causeway Bay, has been put up for sale in recent months by its major owner, Mandarin Oriental Hotel Group. Market valuation of the hotel is more than HKD 30 billion. It is said that a number of developers have submitted the tender for this project and one of the developers, Sun Hung Kai Properties, confirmed it yesterday.

70% units of new launches were sold this year
According to market news and first-hand sales website, more than 14,000 units of new launches were sold this year as at 25 September. The consideration amounted to HKD 180 billion, only HKD 9 billion less than the record of last year. The whole-year consideration is expected to achieve a new historic high.

Millennials accounted for 30% new mortgages
According to TransUnion, a credit reporting company, people born between 1965 and 1979 (Generation X) accounted for 44% of new mortgages in Q1/2017, down for 2 straight years despite its dominant position. Whilst the proportion of those born between 1980 and 1994 (Millennials) increased obviously, up from 26.3% in Q1/2016 to 32.3% in Q1/2017.

Commercial building in Mong Kok sold for HKD 658 m
Chong Hing Bank announced that the whole block of Fung Shun Commercial Building in Mong Kok, has been sold for HKD 658 million or HKD 20,000 per sq ft. It is a 20-storey property located on Nathan Road, with a GFA of 33,249 sq ft. The area of G/F to 4/F are retail area, whilst 5/F to 20/F are offices. Total monthly rental income was about HKD 1.64 million, representing a rental return of around 3%.

(Sources: Vigers Research and market news)

Land premium of Wang On’s Yau Tong project reached HKD 980 m
The negotiation of converting an industrial site at 13&15 Sze Shan Street, Yau Tong, to commercial/residential development has been conducted for a few years. The Government and Wang On Group recently reached an agreement on land premium payable for HKD 980 million, or HKD 3,615 per sq ft, based on the permissible GFA of 272,000 sq ft.

Top floor unit of 39 Conduit Road asks for HKD 100,500 psf
Price list of Henderson Land’s residential project, 39 Conduit Road, in Mid-Levels West, was updated yesterday. The price of a special unit on top floor (Flat B, 46/F) adjusted 2.9% from HKD 537 million to HKD 521.9 million, i.e. the unit price fell from HKD 100,800 per sq ft to HKD 100,500 per sq ft. The unit will be put up for sale this Friday and probably will set a new high for strata-title sales in Asia in terms of unit price.

PRC demand in office market slows
According to a market report, grade A office rents in Central edged up 0.2% m-o-m in August. PRC demand for offices in Central slowed during the month, only accounted for 45% of all new lettings in terms of floor area leased. Most PRC companies adopted a wait-and-see attitude ahead of the 19th National Congress to be held in the next month.

Leasing of bars mainly in second-tier streets
Bars and restaurants are entering a peak season with a number of related leasing renewals posted, particularly in the second-tier streets. According to market sources, the leasing agreement of Shop A, G/F, 29-31 Hillwood Road, Tsim Sha Tsui, with an area of 2,890 sq ft, has been renewed by a bar for HKD 140,000. Tung Choi Street in Mong Kok and San Kin Street in Sheung Shui also posted similar transactions.

(Sources: Vigers Research and market news)

Tender invitation for Cheung Sha Wan residential site
The Lands Department announced that a residential site, New Kowloon Inland Lot No. 6549 off Hing Wah Street West, in Cheung Sha Wan, will be disposed of by public tender. It has a site area of 208,262 sq ft with a total GFA of 987,812 sq ft. The tender invitation for the lot will open on September 29 and close on November 10.

120 new homes sold over weekend
A total of 120 primary transactions were recorded over the past two days (Sep 23 – Sep 24), surged 140% w-o-w. Among which, 4 new launches in Kai Tak development area including Poly Property’s Vibe Centro and Wheelock’s OASIS KAI TAK, accounted for 106 cases or 88% of overall primary sales.

6,800 property transactions expected in Sep
According to market statistics, 4,672 cases and a total consideration of HKD 36 billion have been recorded for September’s property transactions (including residential, parking spaces and commercial properties) as of 20 September. 6,800 cases and a total consideration of HKD 54 billion are expected for the whole month, up by 10.9% m-o-m and 23% m-o-m respectively, both reaching a 3-month new high.

Wing On Plaza transacted for HKD 21,600 psf
A notable grade A office transaction was recorded in Tsim Sha Tsui. Unit 04, Low-Floor, Wing On Plaza, Tsim Sha Tsui, with an area of 1,351 sq ft, has been transacted for HKD 29.1888 million. The unit rate of HKD 21,605 per sq ft not only achieved a new high for the building but also for the district.

(Sources: Vigers Research and market news)

Retail property sales reached 11-month low in Aug
According to the Land Registry, 120 retail property transactions were registered in August (the figure mainly reflects the actual market condition 2-4 weeks ago), dropped 8% from 131 transactions in July. The figure was decreased for 2 straight months and marked an 11-month new low. Whilst total consideration amounted to HKD 2.953 billion, up by 33% monthly.

New World Dev looks into mortgage plan to help U grads buy home
New World Development’s Executive Vice Chairman and General Manager Adrian Cheng yesterday said the group is considering to introduce mortgage plan helping university graduates to buy first home. The rate will be close to market level and the repayment duration will be longer. The down payment requirement may also be lower, but there will be resale restrictions.

Walter Kwok purchased an industrial building with HKD 1.98 b
It is reported that Empire Holdings has purchased 97% ownership share of Tin Fung Industrial Mansion, in Wong Chuk Hang, for HKD 1.98 billion, with an A.V. of HKD 7,229 per sq ft. Empire Holdings is managed by Walter Kwok, the former Chairman of Sun Hung Kai Properties. The Company will unify the ownership of the building through the application of compulsory sale.

The Center transacted for HKD 55,900 psf
The entire top-floor, 79/F, The Center, Central, was confirmed to be transacted for HKD 738 million, or HKD 55,900 per sq ft yesterday. The unit rate was 37.7% above the record of HKD 40,600 per sq ft 8 months ago and reached above HKD 50,000 for the first time, becoming the most expensive grade A office in the city.

(Sources: Vigers Research and market news)

Large scale development of Yau Tong Bay approved
The Buildings Department announced yesterday that a total of 22 building plans were approved in July, including the first two phases of Yau Tong Bay Development. The developable GFA of 2.25 million sq ft will make it become the largest project in the district. The Department also announced that private residential completions recorded 2,464 units in July, up 5.3% m-o-m.

Link REIT’s 17 shopping centres rumored to be sold
A tender list of 17 shopping centres owned by Link REIT was released recently, according to unofficial sources. These shopping centres are located in Tuen Mun, Ma On Shan, Kowloon Bay, Fanling, Kwai Chung, etc., with a market capitalisation of HKD 14.5 billion. Link REIT responded that company review is underway and does not comment on market rumor.

Entire floor of The Sun’s Group Centre sold for HKD 167 m
It is reported that an entire floor of The Sun’s Group Centre, in Wan Chai, with an area of 7,388 sq ft and two parking spaces, have been transacted for HKD 167 million or HKD 22,640 sq ft. The properties appreciated 2.1 times in 12 years. Whilst the yield is more than 2.5% for the new buyer.

Canon leased 52,000 sq ft office GFA in Hung Hom
According to market news, two low floors of China Life Center (One HarbourGate – West) in Hung Hom, with a total area of 52,000 sq ft, have been leased to Canon at HKD 40 per sq ft. The headquarters of Canon was located in the Metropolis Tower in the same district. The relocation will be an upgrade.

(Sources: Vigers Research and market news)

First-hand registrations reached HKD 170 b
According to the Land Registry, 13,060 first-hand private residential transactions were registered this year, as of September 18. The consideration was HKD 171.83 billion, just 8.8% less than HKD 188.41 billion last year as a whole. The whole year consideration is expected to reach a historic new high given that a few more new projects will be put up for sale by the end of this year.

HKCSS to introduce Community Housing Movement
The Hong Kong Council of Social Service (HKCSS) has introduced a transitional shared housing project, called the Community Housing Movement, for those low-income households waiting for public housing for at least 3 years and living in poor conditions. Currently 26 landlords have provided 332 flats for the movement, at least 34 of which would be available by the end of this year.

Lippo Centre transacted for HKD 31,000 psf
It is reported that Unit 08, High-Floor, Lippo Centre Tower 2, Admiralty, with an area of 1,653 sq ft, has been sold for HKD 51.2 million, or HKD 31,000 per sq ft with vacant possession. The yield is about 2.5% provided that market rent of the unit is over HKD 65 per sq ft, said by an agency. The original owner purchased the unit at HKD 34.71 million in 2013, making a book profit of HKD 16.49 million in 4 years.

Leasing activity of dental clinic was active
Leasing activity of dental clinic was active in recent months. Shop 8, G/F, 28 Factory Street, Shau Kei Wan, with an area of 400 sq ft, has been leased to a dental clinic for HKD 26,000 per month or HKD 65 per sq ft, 60% higher than the previous rent. North Point also posted at least 2 similar leasing renewals in the district.

(Sources: Vigers Research and market news)

URA invites expressions of interest for Mong Kok project
The Urban Renewal Authority (URA) put on a request for expression of interest for the project at 331-367 Reclamation Street Mong Kok today with deadline for application on next Wednesday (27 Sep). The site has a GFA of 134,600 sq ft and can be redeveloped for commercial/residential use. Market valuations range from HKD 1.45 billion to 1.8 billion.

First-hand luxury sales reached HKD 102.5 b in Jan-Aug
According to a market report, 3,922 sales and purchase agreements with a total consideration of HKD 102.571 billion for primary luxury (with a value over HKD 12 million) were recorded in the first 8 months this year. The consideration was HKD 1 billion or 1% higher than HKD 101.508 billion last year as a whole. Such high record is first seen in 21 years since 1996.

En-bloc of Sun House leased to Spaces
Expansion of co-working space continues. The entire block of Sun House, located at 90 Connaught Road Central, Sheung Wan, has been leased to Spaces, a European co-working office provider, for HKD 50 per sq ft. The lease involved an area of 77,000 sq ft and has been the largest leasing transaction on Hong Kong Island recently.

39% rent slash on Nathan Road
It is reported that the leasing agreement of a 1,000-sq-ft street shop at 662 Nathan Road, Mong Kok, has been renewed by Chow Tai Fook for HKD 380,000 per month or HKD 380 per sq ft, 39% lower than the previous rent of HKD 630,000 per month.

(Sources: Vigers Research and market news)

Only 40 new homes sold over weekend
According to property sales website and market news, only around 40 units of new homes were sold over the weekend as at 8pm yesterday, falling 80% from last week’s 220 units. Additional units of previous new launches will put up for sale and hence froze the market temporarily. Moreover, no new project was marketed at the weekend.

The 10 major estates posted 11 transactions over weekend
Purchasing power shifted to the secondary market as there was no new project launched over the past two days. All major estate agencies reported transaction rebound in the 10 major estates at weekend. Among which, Centaline Property Agency reported 11 transactions, up by 1.75 times weekly, increased the most and reaching an 18-week high.

Central grade A office price trended up 26.7%
Investment sentiment remained upbeat for the grade A office in Central after the record sales of Murray Road’s commercial site. According to market data, Central’s grade A office price reached HKD 36,400 per sq ft of floor area last month, trended up 26.7% in 8 months. It showed the largest increase of the city.

Street shop at Kau Yuk Road Yuen Long sold for HKD 57,500 psf
It is reported that Shop 9, G/F, 104-126 Kau Yuk Road, Yuen Long, with an area of 400 sq ft, has been transacted for HKD 23 million, or HKD 57,500 per sq ft. The shop has been leased to eCosway for HKD 48,000 per month, representing a rental yield of 2.5% for the new buyer.

(Sources: Vigers Research and market news)

First-hand sales reached 12,000 cases during Jan-Aug
According to the Land Registry, 12,015 primary residential sales were registered during January to August this year, up by 43% compared to 8,389 cases over the same period a year ago and setting a 13-year new high. Consideration amounted to HKD 161.26 billion, surged 69.7% compared with HKD 95.04 billion over the same period a year ago and achieved a historic new high.

The 10 major estates posted 67 transactions in 2 weeks
So far the 10 major estates reported 67 transactions as of September 14, 20 cases or 43% more than the 47 cases over the same period in August. Among which, transaction volume in Mei Foo Sun Chuen, City One Shatin and South Horizons doubled during the period. Prices also went up. For example, a 3-room unit in City One Shatin was sold at HKD 10.38 million, reaching a new high for strata-title sales.

Consumer Council: big difference in interest charges among banks
The Consumer Council approached 17 banks in Hong Kong for mortgage loan information. On 22 August, the actual HIBOR interest rate ranged from 1.79% to 2.32%, while that of the Prime rate-based plan ranged from 2.15% to 2.25%. Taking a HKD 3 million loan to be repaid over 20 years as an example, there may be a big difference in interest charges of nearly HKD 200,000 under different mortgage plans.

PCCW pre-leased Goldin Financial Global Centre
A significant leasing transaction was reported in Goldin Financial Global Centre, in Kowloon Bay. Two floors of the property, with an area of approximately 70,000 sq ft, have been leased to PCCW at HKD 25 per sq ft. The leased area will be used by Now TV, a wholly owned subsidiary of PCCW.

(Sources: Vigers Research and market news)

Development Bureau: No limitations on company share transfer
A residential land at Yiu Sha Road, Whitehead, Ma On Shan, has been changed hands twice within 3 months. It is said that the transactions were a kind of land speculation. Development Bureau yesterday responded that the related land lease only restricts the transfer of land ownership, but not the company share transfer of tenderer.

Secondary internal transactions reached 337 in Aug
According to market data, 2,921 secondary transactions with a consideration of HKD 19.8 billion were recorded in August. Of which, the number of internal transactions accounted for 14.9% or 377 cases, up 8% compared to 346 cases in July. Half of the transactions involved the units with small-to-medium size, representing a stronger investment sentiment of these property owners.

Industrial building in Wong Chuk Hang sold for HKD 1.2 b
The tender of Gee Luen Hing Industrial Building, in Wong Chuk Hang, was closed earlier and it has been transacted for HKD 1.146 billion, with an A.V. of HKD 8,400 per sq ft. It is reported that Central Development has outbid a number of developers to win the tender.

Basement shop at Queen’s Road Central sold for HKD 130 m
According to market sources, Shop 29G, G/F, 29-39 Ashley Road, Tsim Sha Tsui, with an area of 3,000 sq ft, has been sold out for HKD 120 million by the Chan family, the owner of Chuk Yuen Seafood Restaurant. After the selling, the family has purchased a basement shop in Peter Building, 58-62 Queen’s Road Central, Central. The transaction price was HKD 130 million, or HKD 32,500 per sq ft.

(Sources: Vigers Research and market news)