News Room – Daily Property News

New supply in Tuen Mun reached over 6,000 units
So far at least 3 housing development projects with a total supply of 6,167 units in Tuen Mun are owned by Sun Hung Kai Properties, accounting for more than 90% of new supply in the district. Previously Sun Hung Kai Properties has paid a land premium of HKD 6.53 billion for the project in Area 54, Tuen Mun, marking the largest premium amount for the recent 6 years.

Office rental in Kowloon East under pressure amid supply peak
With the new supply of over 714,000 sq ft of office GFA in 2016, new completions of office buildings in Kowloon East are still in the pipeline. An additional supply with a total area of more than 2.5 million sq ft will be put on the market this year. Given that the absorption rate is still low, rent growth in Kowloon East is likely to fall 3% this year, according to market estimates.

Old building in Wing Lok Street transacted for HKD 156 m
According to the Land Registry’s record, Tai Hung Fai Group has purchased the entire block at 26 Wing Lok Street, Sheung Wan, for HKD 156 million earlier this month. The transaction price was 38% or HKD 94 million lower than the asking price. It appreciated 779 times as the original owner purchased it with just HKD 200,000 in 1961. The property is a 6-storey building with a plot area of 801 sq ft.

Bakery retail remains stable demand
Bakery has been a basic necessity for Hong Kong ordinary, driving a stable demand on bakery retails. In recent months, a few bakery rental transactions were recorded, most of them were chain businesses. For example, Shop A, 72-82 Tseuk Luk Street, San Po Kong, with an area of 850 sq ft, has been leased to Taipan Bread & Cakes for HKD 72,000 a month.

(Sources: Vigers Research and market news)

165 new homes sold over weekend
A total of 165 primary transactions were recorded over the past two days, up about 30% compared with 127 cases at previous weekend, according to market data. Cheung Kong Property’s Ocean Supreme posted 123 transactions, accounting for 80% of overall market sales and cashing out approximately HKD 1.1 billion.

Secondary transactions reached 7-week low
Over the past weekend, Midland Realty reported one transaction in New Territories and Hong Kong Island respectively. The figure reached a 7-week new low and has been the 15th consecutive week hovering at single-digit number. Hong Kong Property also reported only 4 transactions. Secondary sales have been dragged down by poor weather and the new launches in Tsuen Wan West.

Entire floor of Argyle Centre sold for HKD 318 m
It is reported that the entire 14/F of Argyle Centre, in Mong Kok, with a GFA of 15,700 sq ft, has been purchased by an experienced investor for HKD 318 million, or HKD 20,300 per sq ft. The original owner purchased the property at HKD 20.55 million in 1980, making a book profit of HKD 298 million or 14.5 times in 37 years.

22% rent slash at Nullah Road Mong Kok
Retail rent in core districts is still under adjustment. According to market sources, a 500-sq-ft street shop in Allied Plaza, opposite to Nullah Road, Mong Kok, has been leased to Promise, a finance company. The current rent is HKD 90,000 per month or HKD 180 per sq ft, 22% lower than the previous one.

(Sources: Vigers Research and market news)

Sites in Kam Tin South may rezone as public housing
In order to accelerate the development of Kam Tin South, the government has suggested to rezone 3 sites around the land lot at Kam Shueng Road Project Phase 1 as public housing development, involving an area of 1.73 million sq ft. 27 blocks of residential building with 9,000 units are expected to be built in the first phase of Kam Tin South Development.

69 new HOS flats sold in first round selection
The first 90 successful applicants of the new batch of Home Ownership Scheme (HOS) flats have been invited for flat selection yesterday. 69 units were sold during the day and the home ownership rate hit 77%, the highest since the resumption of HOS in 2014. Of which, Choi Hing Court was the most popular estate which accounted for 80% of total units sold.

WeWork leased Mapletree Bay Point
According to market sources, an entire low floor of Mapletree Bay Point, in Kwun Tong, with an area of 36,000 sq ft, has been leased to WeWork for HKD 25 per sq ft. So far WeWork has already rented two offices in Causeway Bay and Wan Chai for the business of co-working space, totaling 150,000 sq ft.

Residential land at Shouson Hill sold for HKD 450 m
According to the Land Registry, 11A Shouson Hill Road West, has been changed hands for HKD 450 million, with an A.V. of HKD 45,000 sq ft. The buyer is a company and has to pay the 30% stamp duty, amounting HKD 135 million. This residential land has a plot area of 13,306 sq ft and a GFA of 9,980 sq ft.

(Sources: Vigers Research and market news)

Parc City received over 22,500 applications
Application progress of Chinachem’s Parc City, in Tsuen Wan West, was affected by the typhoon yesterday and the application deadline was extended till 10:30 p.m. yesterday. The project has received over 22,500 applications, setting a new high since 1997 and was the third high in history. The project is oversubscribed by 43 times, based on the first sales of 512 units tomorrow.

Vacancy rate of grade A office edged up to 4.8%
Office leasing activity slowed down in recent months. According to market data, the overall vacancy rate of grade A office was 4.8% as at end-July, edged up 0.4% m-o-m. A net absorption of negative 17,300 sq ft was recorded in the overall market. In particular, leasing transactions in Central dropped by 75% m-o-m.

2,824 industrial registrations reported in first 7 months
According to the Land Registry’s record, 2,824 industrial transactions were recorded in the first 7 months of the year, up 88% y-o-y and achieved a new high since 2014 over the same period. So far the transaction volume already reached 96% of the whole year record of last year. Consideration was about HKD 19.333 billion, accounted for nearly 80% of the whole year record in 2016.

Office at The Peninsula leased for HKD 65 psf
It is reported that the entire 11/F, The Peninsula Hong Kong, Tsim Sha Tsui, with an area of 11,000 sq ft, has been leased to HSBC at HKD 65 per sq ft for back office use. The office provides a great view of Victoria Harbour.

(Sources: Vigers Research and market news)

Small-mid home prices surpass overall market
The 3 major banks’ valuations showed that among the 100 private domestic units and Home Ownership Scheme (HOS) flats in the city, about 70% of which have trended up more than 30% in terms of valuation over the past 3 years. Some properties even appreciated 60%, particularly those small-to-medium size flats.

30 old units in Mong Kok transacted for HKD 224 m
An experienced investor, Tam Pak-wing, has acquired a basket of units at Soy Street and Tung Choi Street, in Mong Kok, since 2010. According to EPRC’s data, his company has already purchased 9-15 Tung Choi Street, and 30 units of an old building at 23 Soy Street since last year. The acquisition costed over HKD 224 million and the area of the units ranged from 450 to 745 sq ft each.

En bloc at Des Voeux Road West sold for HKD 78 m
According to market sources, an entire commercial block at 114 Des Voeux Road West, Central and Western District, with a GFA of about 4,018 sq ft, has been sold transacted for HKD 78 million, or HKD 19,413 per sq ft, through company transfer. The asking price was HKD 90 million, hence the price cut 13% after negotiation.

Mainland students pre-leased Lee Kee Building
Increasing rental demand from Mainland students were seen before the start of school year. It is reported that Flat 4, Mid-Floor, Block B, Lee Kee Building, Ngau Tau Kok, with an area of 471 sq ft, has been rented by 3 Mainland students for HKD 15,800 per month, or HKD 33.5 per sq ft. Full rental payment of HKD 189,600 for a year is settled.

(Sources: Vigers Research and market news)

Secondary sales remain subdued
Transactions in the secondary home market remained subdued over the past two days. Less than 5 transactions were recorded in the ten major estates, according to the three major estate agencies. Ricacorp reported 2 transactions only, dropped 60% w-o-w. It was also the 15th weekend with single digit transactions.

Primary sales slashed 62% to 127 cases at weekend
A total of 127 primary transactions were recorded over the past two days, slashed 62% compared with 330 transactions at past weekend, setting a new low for the past three weekends. Ocean Supreme, in Tsuen Wan, launched 160 units in two batches over the past two days. Of which, 73 units were sold out, accounting for 57% of overall primary sales.

Michael Wong: building routes can enhance Kai Tak’s connectivity
Michael Wong Wai-lun, Secretary for Development, recently stated in his blog that Kai Tak Area is the future development cluster of the city, with a site area of over 320 hectares. Apart from the Sha Tin to Central Link, 4 more routes will be built to support the traffic network in the area. Among which, Kai San Road is already opened in use.

F&B sector returns prime retail districts
Food and beverage sector has returned the prime retail districts due to the rent fall. It is reported that a street shop at Nathan Road, Mong Kok, has been leased to a donuts house for HKD 270,000 per month, 30% lower than the previous tenancy. Tai Hing Roast Restaurant also leased a street shop at Matheson Street, Causeway Bay, for HKD 230,000 per month. The rent cut was about 40%.

(Sources: Vigers Research and market news)

620 subsidised flats put up for sale in Oct
Two new subsidised housing projects in Tseung Kwan O and Tuen Mun are expected to be launched by the Hong Kong Housing Society by the end of October, involving 620 units with a saleable area ranging from 280 to 600 sq ft. The price will set at 30% discount to the market price, namely about HKD 2.4 million up or less than HKD 10,000 per sq ft.

Villa registrations reached 5-year high
According to the Land Registry, a total of 326 villa transactions with a value over HKD 10 million were recorded in the first 7 months of the year, including the transactions from primary and secondary market as well as land transfer. The figure surged 72% over 190 transactions a year ago, reaching a 5-year high.

Oriental Watch renews TST shop lease at HKD 2 m
It is reported that the lease of Shops 2&3, G/F, M/F & 1/F, Holiday Inn Golden Mile, Tsim Sha Tsui, with an area of 4,478 sq ft in total, have been renewed by Oriental Watch for HKD 2 million per month, or HKD 447 per sq ft. Previous monthly rental was HKD 2.6 million, hence the rent slashed 23%.

51 Mount Davis Road transacted for HKD 400 m
It is reported that the property at 51 Mount Davis Road, Pok Fu Lam, with a site area of 13,860 sq ft and an extension area of 1,250 sq ft, has been sold for approximately HKD 400 million, with an A.V. of HKD 38,000 per sq ft. The property appreciated 20 times compared to HKD 18.7 million in 1995. The seller is Wong Sheung Yu Belinda, the granddaughter of Tang King Po, a renowned businessman in construction.

(Sources: Vigers Research and market news)

New World Dev wins Cheung Sha Wan commercial site at HKD 2.96 b
The Lands Department yesterday announced that the business site at the junction of Wing Hong Street, Yu Chau West Street and Wing Ming Street, Cheung Sha Wan, Kowloon, was awarded to the highest tenderer, whose parent company is New World Development, at HKD 2.967 billion, with an A.V. of about HKD 8,000 per sq ft, close to the upper limit of market estimates.

Golden United Dev wins Lantau Island residential site at HKD 210 m
The Lands Department yesterday announced that the luxury residential site at Cheung Sha, Lantau Island, was awarded to Golden United Development Limited, at HKD 210 million, with an A.V. of HKD 19,666 per sq ft. The A.V. is 40% above market estimates and setting a new high on Lantau Island. Parent company of the tenderer is Leap Up Investments Limited, associated with Chan Cheuk Yin, Vice Chairperson of Agile, a PRC developer.

Michael Wong: threshold of industrial compulsory sale may adjust
The Government is considering to reactivate the policy of industrial revitalization. Secretary for Development, Michael Wong yesterday said that the Government will conduct a 6-to 9-month study regarding the industry opinions and the threshold of compulsory sale of industrial buildings, in order to facilitate the ownership acquisition for redevelopment projects.

BEA Harbour View Centre sold for HKD 22,600 psf
It is reported that Unit 05, Mid-Floor, Bank of East Asia Harbour View Centre, Wan Chai, with an area of 2,495 sq ft, has been transacted for HKD 56.387 million, or HKD 22,600 per sq ft, reaching a new high in the district. According to the Land Registry’s data, the original owner purchased the unit at HKD 33 million in 2012, making a book profit of 70.9% or HKD 23.39 million in 5 years.

(Sources: Vigers Research and market news)

2,105 private flats commenced work in Jun
The Buildings Department announced that a total of 2,105 private domestic units reported construction start in June, up 2.18 times m-o-m and ended the downtrend in the past 2 months. Total number of completions reached 2,341 units, up 1.3 times compared with 1,012 units in May.

Flat selection for new HOS flats start soon
The flat selection process for the Housing Authority’s new batch of Home Ownership Scheme (HOS) flats in 2017 will start next Wednesday (23rd August), involving 2,108 units. Successful applicants are invited in batches for flat selection. Details of the flats, for example, the price list, are expected to release today at the earliest.

Land premium reached HKD 22.2 b in 7 months
According to the Lands Department, the amount of land premium payable from private sector redevelopment and land exchange, etc., reached HKD 22.19 billion in the first 7 months of the year, surged 2.7 times compared to HKD 5.95 billion over the same period last year. Among which, premium payment of Sun Hung Kai Properties’ project in Area 54, Tuen Mun, involved HKD 6.53 billion, is the largest premium amount for the recent 6 years.

Wing On Plaza transacted for HKD 22,000 psf
Office prices in Kowloon have started to catch up with the uptrend in Central. It is reported that a sea view unit, Unit 4, Mid-Floor, Wing On Plaza, Tsim Sha Tsui, with an area of 1,351 sq ft, has been transacted for HKD 29.18 million, or HKD 21,600 per sq ft, setting a new high for offices in Tsim Sha Tsui East.

(Sources: Vigers Research and market news)

Old building acquisitions involve HKD 1.9 b so far
At least 9 projects of old building acquisitions have started this year, totaling more than HKD 1.9 billion, according to market statistics. Most of the projects are located in Mid-Levels West, Central as well as Sheung Wan. Academics believed that rising trend of old buildings acquisitions was due to the intensified land bids among developers.

Industrial registrations reached 4-year high
According to the Land Registry, a total of 601 industrial registrations were recorded in July, up 36% m-o-m and reached a 4-year new high. Total consideration was HKD 3.275 billion, rose 28% m-o-m. Increasing number of subdivided projects of industrial buildings were seen in recent months, driven up overall transaction volume.

Unit at Lippo Centre appreciated 87% in 6 years
It is reported that Unit 06, Low-Floor, Lippo Centre Tower 1, Admiralty, with an area of 2,091 sq ft, has been changed hand for HKD 65.87 million, or HKD 31,500 per sq ft, through shares transfer. The original owner purchased the property at HKD 35.28 million in 2011, making an 87% book profit of about HKD 30.59 million in 6 years.

Small shop at Sin Tat Plaza leased at HKD 1,345 psf
According to market sources, Shop G30, G/F, Sin Tat Plaza, Argyle Street, Mong Kok, with an area of 110 sq ft, has been leased out for HKD 148,000 per month, or more than HKD 1,345 per sq ft. The owner purchased the unit at HKD 10.5 million in 2007, earning a rental yield of over 16%.

(Sources: Vigers Research and market news)