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Hong Kong home prices hit half-year low

Hong Kong's home prices fell to a half-year low in October, data from the Rating and Valuation Department showed.

The home price index for lived-in homes dropped 0.6 percent to 380.9 last month, down from 383.1 in September. But that was still 0.44 percent higher than 379.2 in December last year.

The property price index weakened unexpectedly last month as the local economy was not in a good position, even though the epidemic was relatively under control, property agent said.

The agent believes most transactions last month involved vendors who were willing to cut asking prices over concerns about the economic outlook and unemployment rate.

The agent expects the November index will fall by 0.3 percent.

Meanwhile, the rental index slid to 179.3 in October from 179.4 in September, according to the Rating and Valuation Department.

Separately, Swire Pacific (0019, 0087) expects to raise US$160 million (HK$1.25 billion) through the proposed listing of its Danish offshore wind installation and transport business on the Oslo Stock Exchange in Norway. A total of 57.99 million shares are to be made available in the IPO at a price of NOK23.5 (HK$20.5) per share.

In the primary market, New World Development (0017) has collected HK$3.28 billion after selling about 90 percent of the 315 units on offer at The Pavilia Farm phase two atop Tai Wai Station on Thursday.

NWD has now collected about HK$23 billion after selling around 2,100 units in the first two phases of the project.

The developer previously released 315 flats in the fourth price list of The Pavilia Farm phase two at an average HK$22,037 per sq ft after discounts, about 16 percent higher than the first price list.

The cheapest flat, measuring 264 sq ft, is offered at HK$7.19 million, or HK$27,258 per sq ft after discounts.

In the commercial property market, Bridgeway Prime Shop Fund Management purchased a 200-sq-ft shop premise at Yu Chau Street in Prince Edward for HK$9.88 million, after HK$6.92 million was slashed from the original asking price.

The double stamp duty on commercial property transactions has been abolished as the market reels from the pandemic and Sino-US tensions.

(The Standard)


Boon for owners of commercial property in Hong Kong as hefty stamp duty is abolished with immediate effect

Double stamp duty introduced to curb speculation has hurt owners selling during downturn

Hong Kong companies will get help to expand markets in Greater Bay Area, overseas and online

Hong Kong is easing the tax burden on owners of commercial property who sell their assets and will promote local enterprises in the Greater Bay Area and overseas, in efforts to help companies ride out the severe impact of the Covid-19 pandemic.

In her policy address on Wednesday, Chief Executive Carrie Lam Cheng Yuet-ngor announced the end of double stamp duty (DSD) for non-residential properties.

The move, approved by her Executive Council on Wednesday, takes effect on Thursday andis expected to help owners with cash-flow problems to sell their assets without worrying about the tax they would have to pay.

“As a result of the economic downturn and uncertainties surrounding the Covid-19 pandemic, prices and demand for non-residential properties have been dropping over a period of time. The government considers now [is] the right time to abolish the DSD imposed on non-residential properties,” Lam said.

The double stamp duty, introduced in February 2013 to cool an overheating market, subjected both buyers and sellers to a tax rate as high as 8.5 per cent for non-residential properties valued at more than HK$21.8 million.

Lam said abolishing the DSD would help owners who decide to sell their commercial properties to cope with financial difficulties caused by the economic downturn.

A government source said sales of commercial properties had dropped by up to 19 per cent this year from 4,666 deals last year.

Lam said the government would continue to monitor prices of non-residential properties and adjust measures when necessary to ensure the stable development of the market.

However, there will be no change for residential property sales as she stood firm in keeping taxes such as the special stamp duty and buyer’s stamp duty.

“Given the tight housing supply and that residential property prices remain beyond the reach of average households, I must stress that the government has no plan to adjust any of the stamp duty rates concerning residential properties,” she said.

Lam also announced various measures to help Hong Kong companies tap the Greater Bay Area and overseas markets. The bay area comprises Hong Kong, Macau and nine cities in Guangdong Province, which Beijing aims to develop into a massive hi-tech area to rival Silicon Valley in the United States.

“As the Covid-19 pandemic has dealt a heavy blow to economies around the world, reviving the economy and creating employment have become the most pressing issues,” Lam said.

The initiatives include setting aside HK$50 million to subsidise major professional bodies that take part in various promotional activities in the bay area and overseas markets, and expanding the scope of Export Marketing Fund for two years to subsidise enterprises that take part in large-scale events and online exhibitions. Under the scheme, each enterprise is eligible for cumulative funding of up to HK$800,000.

The Hong Kong Trade Development Council (TDC) will also launch a one-stop “GoGBA” platform with Guangdong and related chambers of commerce to support local firms in tapping the mainland domestic market through business promotions, matching services and training. A digital “Online Design Gallery” will showcase local products to market players on the mainland.

The government is also injecting an additional HK$1 billion into the CreateSmart Initiative, a funding scheme for projects that help develop Hong Kong’s creative industry. It has received about 200 applications over the past two years with HK$800 million being granted so far.

TDC chairman Peter Lam Kin-ngok said the economic initiatives could help small and medium enterprises (SMEs) cope better with the pandemic challenges.

“For Hong Kong SMEs facing cash-flow issues, cancelling the double stamp duty for non-residential property will provide them more flexibility in their finances. At the same time, broadening the coverage of the Export and Marketing Fund will help SMEs find new market opportunities online and offline,” he said.

He pledged to work closely with the government to help SMEs enter the mainland market, transform through digitisation and find new global opportunities.

Property agent noted that the city leader’s policy speech did not include many details about the Greater Bay Area initiatives.

Aside from calling for better communication with related bay area government bodies, “We recommend that the government offer immediate and necessary support to Hong Kong people who will move to live and work in the bay area.” the agent said.

(South China Morning Post)


Hong Kong home prices to extend decline after October’s 0.6 per cent surprise drop as Covid-19’s fourth wave dents confidence

The home price index for lived-in homes fell 0.6 per cent to 380.9 last month, as owners continued to settle for less than the asking price

Lay-offs at big firms like Cathay Pacific might influence other companies’ decisions about job cuts and unpaid leave, further denting demand, warned Knight Frank

The fourth wave of coronavirus infections is expected to drag Hong Kong’s home prices down further after they “unexpectedly” fell 0.6 per cent in October.

In an earlier-than-expected release, the government’s Rating and Valuation Department on Thursday revealed that the secondary market home price index dropped to 380.9 last month.

“Even though the epidemic was relatively stable, the property price index last month unexpectedly softened,” property agent said.

The agent believed this was because the economic situation – Hong Kong is mired in its worst ever recession – and high unemployment are still rattling the market.

The number of confirmed cases of Covid-19 decreased significantly in October, and the market for new homes became very active again. And in the second-hand market, some homeowners had been less willing to bargain with potential buyers, suggesting a slight rebound in confidence.

Nonetheless it is likely that most of October’s transactions involved owners who were still willing to reduce their asking prices because of concerns about the economic outlook, the agent said. It was this, rather than a lack of positive market sentiment, that led to the surprise fall in the property price index last month, he believes.

Property prices are down 4 per cent from their historical high of 396.9 points in May last year.

The November index is expected to be slightly softer again, though the monthly decline may narrow to about 0.3 per cent, according to the agent.

The fourth wave of the epidemic in Hong Kong, and the huge lay-offs by the city’s airline Cathay Pacific, are cause for concern. The agent said that the decline in the property price index in December may widen to 1 per cent or more because of a lag in registered sales data.

The sudden latest wave of the epidemic forced the agent to revise his original forecast that property prices could rise by 3 per cent in the fourth quarter to a fall of more than 1.5 per cent.

“Property prices in the next two months are likely to continue to adjust downward,” another agent said.

The current real estate market is very “distorted”, as residential property prices are still high and sales of first-hand properties are very strong, the agent said. The agent  predicts the decline in prices this year will be about 2 to 3 per cent, which is less than the agent had previously feared.

The agent warned that large-scale lay-offs in big firms like Cathay Pacific might influence other companies’ decisions about job cuts and unpaid leave. The agent said that most companies are likely to increase salaries at a very slow pace next year, affecting wage earners’ purchasing power.

The agent called on the government to relax special stamp duties to increase activity in the second-hand market, which would take some heat out of the demand for new homes and help owners with cash-flow problems to cash out or reduce their debt.

“I really hope that the government can use non-traditional thinking to examine the real estate market in extraordinary times,” the agent added. “Under the current market conditions, traditional mechanisms may not be effective to solve the problems.”

Elsewhere, New World Development sold about 90 per cent of the 315 units on sale at its Pavilia Farm phase two development in Tai Wai on Thursday. Altogether, it has sold more than 2,100 units for more than HK$23 billion in phases one and two since the development’s launch last month.

(South China Morning Post)


海富中心每呎26元租出 屬十年來新低












尖區港晶中心商鋪呎價9950元沽 持貨四年貶值39%


鋪市再錄蝕讓成交。市場消息指出,上述為尖沙嘴港晶中心1樓單號鋪,面積約400方呎,以398萬沽出,平均呎價約9950元。據土地註冊處資料顯示,上址原業主於2016年4月以650萬買入,以公司名義SUN GRAND HK LIMITED持有,註冊董事為徐姓人士,故持貨4年帳面蝕讓252萬,物業期間貶值幅度約39%。







盛滙基金創辦人李根興表示,該基金購入太子汝州街單號地下B1鋪,位處栢樹街單邊鋪,面積200方呎,以988萬沽出,呎價約4.94萬,該鋪由小食店以2.5萬承租,租約期至明年11月,料回報約3厘。原業主於2009年以430萬買入,持貨11年帳面獲利558萬,期間升值約1.3倍。他續說,上址屬公司買賣,業主由980萬反價至988萬,今日本來再追買2間鋪位,皆為買物業交易,惟業主突然反價,他不願追, 最終沒有成功購入。





商舖上月空置率微升 中環嚴峻






運動服裝租旺角舖 今年最大手

事實上,近個多月來整體租務市場氣氛有好轉,資料顯示,10月錄得約439宗租賃個案,與9月數字相若,更有租客大手承租旺區巨舖,如運動鞋品牌Foot Locker落實租用旺角家樂坊地下約2萬平方呎樓面,月租約200萬元,預計會成為今年最大額舖位租務成交。









油塘曦臺商舖標售 叫價4.9億


代理表示,獲委託標售油塘崇山街8號及四山街15號,曦臺基座商場連車位及廣告位置招標,以現況交吉出售,意向價4.9億元,截標日期為2021年1月22日 (周五)。

近5萬呎樓面 連車位





深水埗舊樓強拍 底價2.93億


另外,恒地 (00012) 收購的紅磡黃埔街26至40A號,以及2至16A號兩個樓盤地盤,將於下周三 (12月2日) 舉行強拍,拍賣底價分別為13.63億及13.07億元;而宏安 (01243) 收購的大角咀洋松街56至62號,則將於下周四 (12月3日) 舉行強拍,拍賣底價3.27億元。



撤辣即見成交 盛滙988萬購太子舖

市場現放盤反價 最多達1成





尖東港晶中心舖位 蝕252萬沽








雅居樂家族4.51億中標大埔滘段地 僅高次標5%

上月雅居樂 (3383) 副主席陳卓賢次子陳思遠以4.51億元、每方呎樓面地價4,478元中標的大埔公路大埔滘段住宅地皮;地政總署剛以不記名方式,公布落選投標者的投標金額,入標價介乎1.08億至4.28億元,即每方呎樓面地價介乎1,072至4,249元,即陳思遠出價僅高於次標5.3%奪地。

資料顯示,上述地皮鄰近長實 (1113) 發展的鹿茵山莊,地盤面積6.7萬方呎,指定作私宅用途,最高可建樓面約10.07萬方呎。