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Hong Kong’s lived-in home prices decline in August for the fourth straight month, as elevated interest rates and high inventory levels weigh

High interest rates, lack of purchasing power and growing inventory of unsold flats continue to exert downward pressure on property prices

It is widely expected that the city’s home prices are set to drop by about 5 per cent by the end of this year, after the latest round of mortgage rate increases made last week

Hong Kong’s lived-in home prices declined for the fourth straight month in August, government data showed and analysts expect the easing trend to continue for the rest of the year given the elevated interest-rate environment and high inventory levels.

Prices fell 1.4 per cent month-on-month in August, according to an index compiled by the Rating and Valuation Department. The widely watched gauge slipped to 339.2 from 344.0 in July.

“High interest rates, lack of purchasing power and stockpiling of new flats have continued to push property prices downwards,” a property agent said. The agent said that in such an environment the residential property sector will face strong headwinds for the rest of the year while forecasting a 5 per cent decline in average prices over the second half of 2023.

The agent said that although the US did not increase interest rates in September, the interest rate hike cycle is not yet over. The agent said the impact of interest rate hikes will start fading only in the second quarter next year amid expectations that mortgage rates in Hong Kong could still rise this year.

The agency expects that in the short term, the average volume of first and second-hand transactions per month will hover around 3,000-3,500 cases, and that the property market will need a significant turnaround to erase the losses suffered this year.

It is widely expected that the city’s home prices are set to drop by about 5 per cent by the end of this year, after seven major lenders, including the three note-issuing banks – HSBC, Standard Chartered Bank, and Bank of China (Hong Kong) – said they would raise their mortgage rates last week.

The payment on a typical HK$5 million (US$643,000) mortgage over 30 years will increase by 6 per cent after the mortgage rate increases, or by HK$1,430 per month to HK$24,232, according to calculations made by a mortgage broker.

As high interest rates have affected homebuyers’ desire to enter the market, the pile of unsold new flats is now in excess of 20,000 units, according to another property agency.

August’s inventory in hand, including both unfinished and ready flats, rose to 20,513 units from 19,842 units in July. The number of unsold flats has now increased for five consecutive months, and has registered a total rise of 12.1 per cent over the year from 18,292 units at the end of last December, the agency said.

Rental prices have now risen for seven consecutive months through August, increasing about 5.6 per cent over the course of the year. Prices increased 1.4 per cent month on month in August, according to the Rating and Valuation Department.

The government’s Top Talent Pass Scheme will continue to support residential rental demand, the agent said. The agent expects rents to rise by around 8 per cent this year.

(South China Morning Post)


Chinese tycoon Chen Hongtian’s seized luxury Hong Kong flat sells for US$53 million, 39% below market price

The 5,154 sq ft flat in Opus Hong Kong sold to Kwai Sze Hoi, said to be the chairman of Hong Kong-listed Ocean Line Port Development, sources say

Chen and his wife, Chen Yao Li Ni, bought the fifth-floor flat at 53 Stubbs Road for HK$387 million (US$49 million) in September 2015

Receivers for a HK$680 million (US$86.7 million) Mid-Levels flat – seized from Chinese tycoon Chen Hongtian for unpaid loans – have sold the property at 39 per cent lower than the market price.

The 5,154 sq ft flat in Opus Hong Kong was sold to Kwai Sze Hoi for HK$418 million, official records showed. Kwai is the chairman of Hong Kong-listed Ocean Line Port Development, according to sources familiar with the transaction. The family has snapped up a number of luxury properties in Hong Kong in recent years, spending about HK$800 million.

Ocean Line is an inland terminal operator in mainland China and is engaged in the provision of port logistics services. Ocean Line was listed on GEM, the second board of HKEX in 2018, according to its filings.

The Kwai family also bought two units in 21 Borrett Road, a luxury residential project in Mid-Levels developed by Li Ka-shing’s property flagship CK Asset Holdings in 2021. The two units, transacted at about HK$380 million, were sold to Kwai’s son Kwai Kun and Kwai Tsz, also believed to be one of Kwai’s family members, according to local media.

Chen and his wife, Chen Yao Li Ni, bought the fifth-floor flat at 53 Stubbs Road for HK$387 million in September 2015, according to official records. In February, the flat was seized by Bank of Communi­cations, which extended a mortgage in August 2019.

The property was one of at least three assets seized by lenders in Hong Kong as of late March from Chen, whose Cheung Kei Group owns offices, hotels and finance firms.

The receivers put the flat up for sale by tender in May, and the tender closed on August 8, according to Savills, which had been appointed the sole agent for the deal.

Developed by Swire Properties on a site long possessed by the company as a home for its executives, the Opus project is acclaimed architect Frank Gehry’s only residential project in Asia. The building twists to give each of its 12 flats a unique floor plan, and is only a nine-minute drive away from the Central business district.

The flat Chen owned, which occupies the entire fifth floor, has five bedrooms, including four with their own bathrooms, a study, a living room, a dining room and a kitchen. It has an open-plan design and a ceiling height of more than four metres, according to a property agency.

(South China Morning Post)


旺角家樂坊巨舖租出 龍豐藥房進駐

核心區舖位持續受捧,旺角家樂坊 FOOT LOCKER 舊址,近日由龍豐藥房承租,月租約100萬,該巨舖面積達1.8萬呎,有機會成為全港最大間藥房。

連鎖鞋店 Foot Locker 今年中關閉在港全線6間分店,撤出香港,其中家樂坊地下旗艦店,該巨舖以約100萬租出,租客為龍豐藥房,平均呎租約55元。該舖前身長租客為 FOOT LOCKER,在2020年月租高達200萬,最新租金下跌50%。


換言之,龍豐以約半價承租靚舖,FOOT LOCKER 撤走後,該巨舖由 AEON 百貨短租。而在2014年舖市高峰期,H&M時裝於2014年承租旺角家樂坊地庫至1樓,合共5.4萬方呎樓面,月租高達900萬。








遠航創辦人桂四海 4.18億購山頂傲璇


祥祺陳紅天持有 淪銀主盤

是次涉及的傲璇 (OPUS HONG KONG) 5樓單位連同兩個車位,最初由祥祺集團陳紅天2015年以3.87億元,向太古地產 (01972) 購入作為自住,不過陳紅天年初起陸續有物業被銀行接管,其中傲璇單位由交通銀行接管。

據資料顯示,該單位連同車位早前以4.18億元售出,新買家為 Kwai Sze Hoi 購入,跟遠航集團創辦人桂四海同名。

兩年間 8億入市港物業

桂四海據指在90年代創辦遠航集團,擁有及管理30多艘遠洋船隊。而桂四海家族成員則曾經在兩年前以逾3.8億元購入半山區西部波老道21號新盤21 BORRETT ROAD 兩伙,連同今次購入傲璇,短短2年間以8億元入市,而桂四海本身亦持有半山寶雲道15號的獨立屋。