News Room – Daily Property News

Manhattan Realty wins Tai Po Kau residential site at HKD 323 m
Tender of a residential site at Yat Yiu Avenue, Tai Po Kau, Tai Po was closed last Friday and it has been awarded to Manhattan Realty (owned by Tien Pei-chun, Honorary Chair of Liberal Party) at HKD 323 million. The A.V. of HKD 5,506 per sq ft was close to the lower end of market valuations but was 21% higher than the A.V. of HKD 4,551 per sq ft for a nearby residential site the group awarded 14 months ago.

Country Garden purchased Ma On Shan residential site at HKD 2.44 b
A joint announcement of Wang On Group and Wang On Properties released on Monday that 60% shareholdings of a project at Yiu Sha Road, Ma On Shan will be sold to Angel View, a subsidiary of Country Garden, at HKD 2.441 billion. The A.V. was about HKD 10,500 per sq ft and it will be the first site in Hong Kong purchased by Country Garden.

Prime shop leased to cosmetic store
It is reported that Shops 5&6, G/F, 68-80 Canton Road, Tsim Sha Tsui, with an area of 1,782 sq ft, have been leased to a cosmetic store for HKD 1.3 million per month, or HKD 730 per sq ft. The current rent is HKD 100,000 higher than the rent last year but was 60% lower than the level in 2014.

The Harbourside sold at new high HKD 56,000 psf
According to market news, a sea view unit, High-Floor, Tower 3, The Harbourside, Kowloon Station, with an area of 1,076 sq ft and a parking space, has been transacted for HKD 60 million via company share transfer. The transaction price of HKD 55,762 per sq ft is expected to break the estate’s record. The original owner purchased the unit at HKD 17.1 million in 2004, making a book profit of HKD 42.9 million.

(Sources: Vigers Research and market news)

BSD-related transactions rose to 325
Inland Revenue Department announced that residential transactions related to Buyer’s Stamp Duty (BSD) amounted to 325 in August, up 27% compared with 256 cases in July and achieved a new high since the Government raised the property stamp duty in November last year. Tax revenue from BSD dropped 12.1% m-o-m to HKD 630 million, representing a smaller amount of tax of each transaction.

Rent in major estates hits new high for 6 straight months
According to an estate agency’s statistics, the average rent in the 107 major estates was HKD 35.3 per sq ft of saleable area in August, edged up 0.3% over HKD 35.2 in July and hitting new highs for six straight months. Of which, rent in City One Shatin increased the most at 2.3% monthly, ranked top among the 10 major estates of the city.

High-Floor of Billion Centre transacted at HKD 86.33 million
It is reported that an Adjacent Unit, 27/F, Billion Centre Tower A, 1 Wang Kwong Road, Kowloon Bay, with a GFA of 6,641 sq ft, has been transacted at HKD 86.333 million, or HKD 13,000 per sq ft. The property appreciated about 1.9 times in 8 years as the original owner purchased it at HKD 29.77 million in 2009.

Retail rent on Haiphong Road down 33% to HKD 733 psf
According to market sources, the leasing agreement of Shop A-G, G/F, 45 Haiphong Road, Tsim Sha Tsui, with an area of 818 sq ft, has been renewed by Bonjour Cosmetics at HKD 600,000 per month, or HKD 733 per sq ft, 33% lower than the previous rent. The monthly rent during the retail peak three years ago was HKD 1.2 million, and then it cut further to HKD 900,000 last year.

(Sources: Vigers Research and market news)

Industrial transactions surged 91% in Jan-Aug

Industrial properties recorded 3,264 transactions in January to August, surged 91% y-o-y, where transactions of small value dominated the market. Total consideration amounted to HKD 21.755 billion, rose 55.6% y-o-y. With the Government planning to initiate the revitalisation of industrial buildings again, the outlook of industrial property market is bright.

Transactions in secondary market increases

The 10 major estates recorded 27 secondary transactions in the past weekend, rose 92.8% w-o-w. According to the statistics of the 4 major agents, 3 of them recorded an increase in transactions. Affected by the launches of new projects and the Government studying the policy of starter homes, wait-and-see attitude is adopted in the market. The increase in transaction volume is expected to be limited.

Grand Austin transacted at HKD 30,000 psf

According to market news, Flat D, High-Floor, Block 2, Grand Austin, Tsim Sha Tsui, with a saleable area of 889 sq ft, has been transacted at HKD 26 million, or HKD 29,246 per sq ft. The original owner purchased the unit at HKD 18.25 million in July 2014, earning a book profit of HKD 7.75 million, or 42%.

The Royal Oaks leased at HKD 68,000

Odd No. House, Kensington Path, The Royal Oaks, Sheung Shui, with a saleable area of 3,003 sq ft, has been put up for lease at HKD 85,000 in August. The house was finally leased with the rent slashed by 20% to HKD 68,000, or HKD 22.6 per sq ft. The owner purchased the house at HKD 24.38 million in 2007.

(Sources: Vigers Research and market news)

Proportion of PRC buyers reached 19-quarter high
According to a research report, PRC buyers accounted for 9.7% of purchases of residential properties by individuals during the second quarter of this year. The proportion reached a 19-quarter high since the third quarter of 2012. PRC buyers are distinguished by the name in Chinese Pinyin.

4 old buildings in Hung Hom applied for compulsory sale
Four old buildings at 26-40A Whampoa Street and 83-85 Baker Street, valued at HKD 660 million, have been applied for a compulsory sale by Henderson Land recently. It has been the eighth application of compulsory sale in Whampoa and the redevelopment can provide almost 1 million sq ft of GFA as a whole.

Street shop at Un Chau Street transacted for HKD 89 m
It is reported that Shop B, 231-247 Un Chau Street, Shum Shui Po, with an area of 1,524 sq ft, has been sold to Lucky Talent Enterprises Limited last month. The transaction price was HKD 89 million, or HKD 58,000 per sq ft. Rental yield for the new buyer is approximately 3%.

Ch Soft Power bought a villa in Kowloon Tong at HKD 330 m
Ch Soft Power yesterday announced that the company has purchased a property at 1 Lincoln Road, Kowloon Tong, for HKD 330 million, or HKD 47,882 per sq ft, via company share transfer. The property is a 3-storey villa with a 38-sq-ft balcony and a rooftop. It has a site area of 10,656 sq ft and the saleable area of the villa is 6,892 sq ft.

(Sources: Vigers Research and market news)

Luxury transactions surged 60% during Jan-Aug
According to the Land Registry, 453 first-hand residential transactions with a value over HKD 40 million were recorded from January to August this year. The figure was up by 60% or 92% as comparing to 284 cases and 236 cases over the same period in 2016 and 2015 respectively, representing a continuous demand for luxury new launches.

2,464 units of private homes completed in Jul
According to the Rating and Valuation Department, 2,464 units of private residential units were completed in July, rose 5% over 2,341 units in June and has been the second month above 2,000 units. The figures have reached a high level since March this year, the time primary sales started getting red-hot. The supply will keep increasing.

Henderson purchased old building in Kowloon City for HKD 130 m
According to the Land Registry’s record, Henderson Land has purchased a whole-block at 67 Fuk Lo Tsun Road, Kowloon City, for HKD 132.8 million, or HKD 33,200 per sq ft. It has a site area of approximately 1,000 sq ft and a GFA of 4,000 sq ft. The tenant on the ground floor is Kung Wo Dou Bun Chong, an old brand making soy products.

Entire floor of Rykadan Capital Tower sold for HKD 174 m
A listed company, BE Clean Energy announced that the company has purchased 4 parking spaces and the entire 17/F of Rykadan Capital Tower, Hoi Bun Road, Kwun Kong (about 12,195 sq ft), for HKD 174 milllion, or HKD 14,268 per sq ft. The original owner purchased the property at about HKD 100 million in 2012, earning a book profit of HKD 74 million in 5 years.

(Sources: Vigers Research and market news)

10 major estates posted only 120 transactions in Aug
Transactions of the ten major estates have been hovering at around 100 cases as the market spotlight has shifted to the primary market. In August, a total of 120 transactions were recorded in the ten major estates, equal to the figure in July. Total consideration was HKD 867 million, up 8.2% comparing to HKD 802 million in July.

4,500 units of pre-sale consents issued
According to the Lands Department, 6 pre-sale consents with 3,037 residential units were issued in August, reached the second highest record for the recent five years. After the deduction of all the 953 units sold by Parc City, the new supply involves 2,084 units. If including the pre-sale consents issued previously but not yet marketed, the total residential units available for sale is about 4,500 units.

URA invites 27 developers to join Graham Street project
The Urban Renewal Authority has invited 27 developers to bid for its project at Site C of Peel Street/Graham Street in Central for office/hotel/retail development. The tender will be closed on October 9. Market valuations range from HKD 8.3 billion to HKD 10.4 billion, or with an A.V. of HKD 19,000 – 24,000 per sq ft.

Sammy’s Kitchen renewed lease below market rent
Sammy’s Kitchen has been opened in Sai Ying Pun for 48 years. Previously the shop was changed hands and the tenant encountered some issues regarding the rent hike. After negotiation, the leasing agreement has been renewed at a rent of HKD 120,000, 45% higher than the previous rent but below the market rent by 20%.

(Sources: Vigers Research and market news)

Overall property sales rose 12% in Aug
The Land Registry yesterday announced that total number of property transactions reached 6,130 in August, rose 12.3% compared with 5,461 transactions in July. Whilst the consideration was about HKD 43.9 billion, dropped by 4.2% monthly. The figures mainly reflect the market condition 4 weeks ago.

Equitable mortgage surged 59% m-o-m
According to market data, 1,339 equitable mortgages were recorded in August, rose 59% m-o-m and setting a second highest record of the year. Whilst 9,590 mortgage loans on completed properties were reported during the month, down 7% m-o-m. Impacts of interest rate hike have started to appear as the market share of mortgage loans on completed properties owned by major banks fell 3.7 percentage points m-o-m.

Entire floor of Shun Tak Centre sold for HKD 750 m
HKR International announced yesterday that the entire 22/F, China Merchants Tower, Shun Tak Centre, has been sold by the company’s principal subsidiary, Yintaly Construction Company Limited. The property with a GFA of 24,200 sq ft was sold to an independent third party for HKD 750 million, or HKD 30,992 per sq ft, reaching a new high for the building.

More Chinese restaurants renewed lease at a higher rent
Transactions of Chinese restaurants renewed lease at a higher rent were getting more. For example, the leasing agreement of Shop G9, G/F & 1/F, 6 Ka Wing Street, Yau Tong, has been renewed by a Chinese restaurant for HKD 260,000 or HKD 23 per sq ft, 24% higher than the previous monthly rental of HKD 210,000. The GFA of the shop is 4,070 sq ft on G/F and 6,490 sq ft on 1/F.

(Sources: Vigers Research and market news)

Tender for a residential site in Tai Po close on Friday
The public tender for a residential site at Yat Yiu Avenue, Tai Po, will close this Friday. It has a site area of 82,000 sq ft with a GFA of 59,000 sq ft. The development scale of the site is relatively small. Market valuation of the site was above HKD 470 million, with an accommodation value of above HKS 8,000 per sq ft.

507 new homes sold over weekend
According to market news and first-hand sales website, around 507 units were sold at the weekend for the new launches in the city as at 8pm yesterday, up 2.3 times over 150 units at the previous weekend. Among which, all 432 units of Parc City’s second round of sales were sold out.

Secondary market remained subdued
According to the major estate agencies’ statistics, transaction volume of the ten major estates kept hovering at single-digit over the past two days. Midland Realty’s ten major blue-chip estates recorded 5 transactions, up by 3 transactions or 1.5 times w-o-w. However, it has been the 16th consecutive week hovering at single-digit number.

Lippo Centre transacted for HKD 30,750 psf
It is reported that Unit 03, Low-Floor, Lippo Centre Tower 1, Admiralty, with an area of 1,929 sq ft, has been sold for HKD 59.3 million, or HKD 30,750 per sq ft. As the property was not transacted via company transfer, the buyer had to pay 8.5% stamp duty of approximately HKD 5.04 million.

(Sources: Vigers Research and market news)

Redevelopment for Mei Tung Estate approved
The Housing Authority’s Subsidised Housing Committee yesterday approved the redevelopment of two blocks at Mei Tung Estate, in Wong Tai Sin. The target clearances, Mei Tung House and Mei Po House aged 43 and 34 respectively, together comprise 650 housing units and 26 commercial tenants. The redevelopment is expected to provide 1,900 units in 2027.

Compulsory sale applications up 80% during Jan-Aug
According to market information, compulsory sale applications cited the Land (Compulsory Sale for Redevelopment) Ordinance reached 9 cases from January to August this year, up 80% over 5 cases the same period a year ago. The application number by end of this year is expected to be more than 11 cases, the record of last year.

Wah Lik Industrial Building in Tsuen Wan sold for HKD 130 m
A few significant transactions were recorded recently after the government’s announcement on relaunching the program to redevelop industrial buildings. An experienced investor, Wong Hoi-ming purchased Wah Lik Industrial Building in Tsuen Wan, with an area of 22,649 sq ft, for HKD 133.9 million (or HKD 5,912 per sq ft). Another experienced investor, Tam Pak-wing, made a purchase of HKD 420 million for the whole block of Kwai Wan Industrial Building, located in Wing Kin Road, Kwai Chung.

Watch and jewelry stores move out from Tsim Sha Tsui
The overall watch and jewelry sales continued to see a slowdown due to a decline in luxury goods spending from mainland customers. Thus a drop of retail rent was recorded when the watch and jewelry stores no longer chased for the prime location at a high price. It is reported that G/F & 1/F Manson House, Tsim Sha Tsui were rented by C.S.S. Jewellery Co. for HKD 2.8 million per month and now HKD 1.8 million per month by a bank, approximately a 36% fall in rent.

(Sources: Vigers Research and market news)

Task Force on Land Supply appointed
Before attending the Executive Council meeting yesterday, Chief Executive has appointed 22 non-official and 8 official members to the Task Force on Land Supply (Task Force) for a term of one and a half years. Chairman of Subsidised Housing Committee, Stanley Wong Yuen-fai will serve as Chairman of the Task Force; whilst Greg Wong Chak-yan, the former President of The Hong Kong Institution of Engineers, will serve as Vice-Chairman.

CDA Scheme on Sai Kung Wai Man Road
As part of the Government’s planning of Comprehensive Development Area (CDA), Hong Ting Road and Wai Man Road in Sai Kung are in process of redeveloping for residential and commercial uses. Developers including New World Development proposed to build 14 blocks of residential building and 65 villas with a plot ratio of 1.446 in Wai Man Road. The largest Sai Kung redevelopment project will provide a total of 769 units and a GFA of 923,000 sq ft to the area.

Hotel Bonaparte by Rhombus Wan Chai sold for HKD 450 m
More en-bloc hotel transactions were seen in the market. It is reported that the en-bloc of Hotel Bonaparte by Rhombus in Wan Chai, has been purchased by a veteran shop investor, Tang Shing-bor, for about HKD 450 million. The capital value of each guestroom is HKD 5.62 million in average. The property was built in 1998 and is a 23-storey hotel opened since 2008.

Another transaction of Grade-A office Lippo Centre
After the world’s costliest land plot sold in Central Murray Road earlier this year, Grade-A office on Hong Kong Island has been an attraction to land developers. Three sons of Robert Ng Chee Siong, Chairman of Sino Group, had another purchase on Lippo Centre with HKD 113 million (HKD 32,500 per sq ft) after a HKD 70 million purchased on the same building last month.

(Sources: Vigers Research and market news)