News Room – Daily Property News

311 BSD transactions registered in Jun
According to the Inland Revenue’s figures, 311 cases of Buyers’ Stamp Duty (BSD) were registered in June, surged 98% m-o-m. The figure represents the market condition one month ago in general. Total consideration was about HKD 737 million, increased by around 60% m-o-m. Both transaction volume and value reached a 7-month high since November 2016.

Average rent of major estates rose to HKD 35 psf in Jun
According to market data, average rent among the 107 major estates was HKD 35.1 per sq ft of saleable area in June, rose 1.2% m-o-m and setting a new high for 4 straight months. A cumulative rise of 5.4% was reported in the first half of 2017. The 10 major estates all reported an rental increase ranging from 0.3% to 4.8% in June.

HKD 82 b industrial and commercial consideration in 1H17
A total of 121 industrial and commercial transactions with a value of over HKD 100 million were recorded in the first half of this year, according to market statistics. Total consideration reached HKD 82 billion, surged nearly 60% over a year earlier. The figure is expected to reach HKD 90 billion in the second half of this year, up 9.8% compared to the first half of this year.

Entire floor of Argyle Centre sold for HKD 313 m
It is reported that the entire 14/F, Argyle Centre, Mong Kok, with an area of 15,668 sq ft, has been transacted for approximately HKD 313 million, or HKD 20,000 per sq ft. The data from the Land Registry shows that the original owner purchased the property at HKD 20.55 million in 1982, he or she has made a book profit of about HKD 290 million, appreciated 14 times in 35 years.

(Sources: Vigers Research and market news)

Sales in major estates remained low
Secondary market was hit by the government’s cooling measures, coupled with the U.S. interest rate hike and the red-hot sales of primary market. According to an agency’s statistics, less than 30 transactions were recorded in the 35 major estates last week, reduced 6.7% on a weekly basis. 63% of estates did not record any transactions.

6,300 mortgages on secondary properties reported in Jun
According to market data, in June 2017, 6,300 mortgage loans on completed properties were registered in secondary market, setting a 55-month high. The total number reached 29,700 registrations in the first half of 2017, also setting a 5.5-year high.

Street shop on Argyle Street sold for HKD 84,700 psf
It is reported that Shop A, G/F, 25-27 Argyle Street, Mong Kok, with a gross floor area of about 600 sq ft, has been changed hand for HKD 50.8 million. The shop is rented by a pharmacy for about HKD 84,700 per month and the rental return is 2%. However, the property will be transacted with vacant procession.

Foreclosed villa at No. 1 Oxford Road sold for HKD 200 m
According to market news, Even No. House, No.1 Oxford Road, Kowloon Tong, with a saleable area of 4,908 sq ft, has been transacted for HKD 200 million, or HKD 40,750 per sq ft of saleable area. The transaction of this foreclosed villa has become the largest deal of foreclosed residential properties this year.

(Sources: Vigers Research and market news)

Residential completions fell 5% to 1,012 units in May
The Rating and Valuation Department announced that 1,012 private residential units have completed construction in May this year, dropped 5% m-o-m compared with 1,066 units in April. Total completion was 6,448 units in the first five months, meeting the forecast of 17,100 units by 38%.

New guidelines to regulate sale or leasing non-residential properties
The Estate Agents Authority (EAA) yesterday issued a practice circular to regulate the sale and purchase or leasing non-residential properties in four aspects, including the floor area information, permitted use, legality of cockloft and mezzanine floors and additional guidelines for properties in an uncompleted building. The circular will be effective on 1st October, 2017.

Central Bangkok Bank Building sold for HKD 24,000 psf
It is reported that the entire high-floor of Bangkok Bank Building, Central, with an area of 2,350 sq ft, has been sold for HKD 56.4 million with vacant possession. The transaction price of HKD 24,000 per sq ft reached a record high for the building. The previous transaction price of the building was below HKD 20,000 per sq ft. Capital inflow to Grade B offices has been observed after the land sale of Murray Road.

CFO of Meitu purchased The Mayfair for HKD 130 m
According to the Land Registry, Flat A, High-Floor, The Mayfair, Mid-Levels, with a saleable area of 2,242 sq ft, has been transacted for HKD 129.88 million, or HKD 57,930 per sq ft of saleable area, setting a new high for standard unit in the estate. The registered buyer is Ngan King Leung Gary. The original owner purchased the unit at HKD 91.8 million in 2002, making a book profit of HKD 38.08 million.

(Sources: Vigers Research and market news)

HK PMI rebounded in June
The Purchasing Managers’ Index (PMI) in Hong Kong rose from 50.5 to 51.1, from May to June. It has remained at the level of expansion for 3 months. Nikkei/Markit data showed that the growth of new orders slightly recovered in Q2, and the sales export to Mainland reached an over 3-year high, representing stronger demand from Mainland customers.

Kwai Chung temporary site will build 650 PRH flats
For the sake of housing development, it is reported that a temporary site in Kwai Chung, with a site area of about 54,000 sq ft, will be used for building Public Rental Housing (PRH) flats by the government. The project is expected to provide 650 units, accommodating about 1,600 people. Construction will start in 2019 at the earliest.

Small shop in Mong Kok sold for HKD 15.1 m
According to market news, Shop 6, G/F, Richmond Commercial Building, 109-111 Argyle Street, Mong Kok, with a saleable area of 90 sq ft, or a gross floor area of 150 sq ft, has been transacted for HKD 15.1 million. The shop has been leased to Kin Ying Exchange at HKD 40,000 per month. The new buyer is expected to earn a rental return of 3.2%.

Hereford Road luxury home sold for about HKD 100 m
According to market news, a luxury residential unit at 16 Hereford Road, Kowloon Tong, with a saleable area of 3,742 sq ft, has been transacted for HKD 99 million, or HKD 26,400 per sq ft of saleable area. The original owner, WONG Siu Kong, Chairman of Kerry, or his related party, purchased the unit at HKD 35 million in 2006, making a book profit of HKD 64 million or 1.8 times.

(Sources: Vigers Research and market news)

Property registrations rose 5% to 7,902 in June
According to the Land Registry, a total of 7,902 property registrations were recorded in June, rose 4.9% on a monthly basis. Among which residential registrations amounted to 6,100 cases, 6.4% higher than the 5,732 cases in May. Total consideration was HKD 59.1 billion, rose 10.4% on a monthly basis. Both transaction volume and value showed an uptrend.

Sun Hung Kai proposes to build 2,031 units in Tin Shui Wai
Sun Hung Kai Properties has proposed a new plan for the comprehensive residential project in Tin Shui Wai Planning Area 112. Some residential floor area will be changed to commercial use and the number of home units will reduce to 2,031. Villa design will also be added. The plot has a site area of 813,000 sq ft, 1,942 flats and 252 villas were approved to build last year, involving 2,194 units in total.

Increasing industrial and commercial transactions in 1H17
A total of 4,402 industrial and commercial registrations were recorded in the first two quarters, surged 118% y-o-y. Total consideration also increased by 93.6% y-o-y to HKD 47.395 billion during the period. Commercial transactions recorded the largest increase, with a total of 1,209 registrations, involved HKD 20.148 billion.

Serenade sold for HKD 21 m, loss HKD 1.39 m
It is reported that a mid-floor unit, Block 2, Serenade, Tai Hang, has been sold for HKD 21 million, the original owner has made a book loss of HKD 1.39 million in 7 years. Whilst a mid-floor duplex unit, Radcliffe, Pok Fu Lam, was sold for HKD 60.2 million last month, the original owner made a book profit of HKD 2.2 million. If considering the expenses like stamp duties and agent commission etc., the actual loss was about HKD 600,000.

(Sources: Vigers Research and market news)

Number of estate agent rose to historic high

According to the latest statistics from the Estate Agents Authority, there were 37,814 estate agent’s licenses issued as at the end of June this year, up about 1.1% or 410 individuals more than the May’s figure of 37,404 individuals. The figure also broke the historic record of 37,568 individuals in December 2015.

To Kwa Wan redevelopment costs for HKD 15,400 psf

The property acquisition for three redevelopment projects in To Kwa Wan will be proposed to affected property owners by the Urban Renewal Authority (URA) this Friday. The acquisition price is calculated as HKD 15,383 per sq ft of saleable area, based on the policy of “seven-year-old flat” for affected owner-occupiers. It has been the new high acquisition price offered by URA.

Lippo Centre transacted for HKD 32,352 psf

According to Land Registry’s data, Unit 2, 12/F, Lippo Centre Tower 1, Admiralty, with a saleable area of 1,920 sq ft, has been transacted for HKD 97.8 million. The original property owner purchased the property at HKD 56.848 million in May 2015. The agency said that the property has a gross floor area of 3,023 sq ft and the price is HKD 32,352 per sq ft.

A&F will lease a 7,000-sq-ft shop in Harbour City

American fashion brand, A&F (Abercrombie & Fitch) last year announced that the group would terminate prematurely the lease of the giant shop at Pedder Street, Central. It is reported that the company has rented a shop in Harbour City, Tsim Sha Tsui, with an area of 7,000 sq ft. The area is around 70% less than the original shop area of 25,600 sq ft.

(Sources: Vigers Research and market news)

Quiet trading in 10 major estates over weekend

Less than 10 transactions were recorded in the ten major estates over the weekend, according to the four major estate agencies in Hong Kong. Centaline Property reported only 3 transactions for three straight weekends and zero transaction in seven estates; Midland reported 5 transactions, less than 10 transactions for seven weekends.

270 first-hand sales recorded over weekend

First-hand sales returned to the level of above 100 cases at the past weekend, driven by the new launch of PARK YOHO Genova in Yuen Long, developed by Sun Hung Kai. Yesterday another new launch of L’WANCHAI, developed by L’Avenue International Holdings, also sold out 60%, or 12 units during the first round sales. A total of 270 first-hand sales were recorded over the weekend, surged 12.5 times w-o-w.

Harbour Centre transacted for HKD 30,000 psf

It is reported that Units 10-11, Mid-Floor, Harbour Centre, Wan Chai, with an area of 3,952 sq ft, have been transacted for HKD 120 million, or HKD 30,364 per sq ft. The transaction price was 16% above the record of HKD 26,000 per sq ft last year and reached HKD 30,000 per sq ft for the first time.

13% rental increase on Dundas Street

It is reported that Shop 3, G/F, 53-55 Dundas Street, Mong Kok, with a gross floor area of 370 sq ft, will be leased to a new tenant for HKD 68,000 per month, or about HKD 184 per sq ft. It has been leased to a Taiwan-style drink shop till October 2017, with a monthly rent of HKD 60,000. The new lease recorded 13% rental increase.

(Sources: Vigers Research and market news)