Home buyers in Hong Kong remained in wait-and-see mode ahead of Chief Executive John Lee Ka-chiu's policy address this Wednesday but the number of secondary deals rose, with sellers slashing prices by as much as 21 percent.

A property agency recorded 12 deals at 10 major estates over the weekend, twice the number of the previous week.

The company said that as many new projects were waiting policy address announcements before launching sales, buyers returned to the secondary market, which was also stimulated by further price cuts.

Another property agency meanwhile recorded nine deals at 10 major estates, up by four deals, but five of the estates recorded no deals.

After several discounts, a flat at Metro City phase three sold for HK$6.3 million, down by 21 percent from the asking price of HK$8 million in June.

Another flat in Metro City phase one sold for HK$5.82 million after a nearly HK$1 million discount, compared to the asking price of HK$6.8 million in June.

And a flat in City One Shatin with an area of 304 square feet sold for HK$4.8 million, down by 5.9 percent from the asking price of HK$5.1 million in early October.

In other news, the Urban Renewal Authority is looking at adopting advanced land grant applications for major redevelopment projects in the future, so developers can start construction on cleared land if there are only a few occupants in some old buildings.

The benefits of the advanced land grant application is that the URA and developers can adjust construction arrangements according to the clearance progress, including protection measures for the units and buildings still occupied, allowing construction to start earlier and shortening the waiting time.

The URA streamlined the redevelopment process of the Shing Tak Street project by piloting an advanced land grant application.

The authority is now in discussions with the Lands Department to speed up the land grant process for the project so that the relevant land grant documents can be obtained earlier for tender, with a view to commencing the project with developers in 2023 at the earliest.

(The Standard)

Hong Kong long-stay landlords battle desperate hotels for finite guests as former quarantine rooms flood market

Hotels slash rates to fill their rooms now that quarantine stays are gone, luring guests from serviced apartments and the leasing market

Only a reopening of the border with the mainland and a ‘0+0’ policy will fill up hotel rooms and restore normal conditions, insiders say

Hong Kong’s serviced-apartment operators are taking friendly fire from an unlikely competitor, as hotels that have lost their quarantine income slash prices to fill empty rooms after local authorities relaxed their isolation rules for inbound travellers.

The former quarantine hotels are hurting for guests because few business travellers and tourists have returned, leaving the market flooded with vacant rooms, said Derek Sun Wei-kong, managing director of Signature Homes.

“Hotels, when they are not full, tend to lower the price and attract long-stay guests,” he said. “And that’s basically taking market share from serviced apartments and residential.”

Signature Homes is the residential leasing arm of Sun Hung Kai Properties (SHKP), Hong Kong’s biggest developer by value. It manages more than 2,000 units.

“If you just go to any hotel, they are bound to have some long-staying guests,” Sun said. “Hotels tend to give out quite a significant discount for those 14-day stay packages.” Guests can also renew multiple times, he added.

SHKP’s leasing portfolio has units costing from about HK$20,000 (US$2,830) a month for a studio of 400 sq ft in Tseung Kwan O to about HK$500,000 for a 5,000 sq ft unit in The Peak or Island South.

By contrast, Regal Hongkong Hotel in Causeway Bay is offering a long-stay package of 30 nights in a standard room for only HK$14,900 until December 31, according to its website.

The government engaged some 26,000 hotel rooms – about 29 per cent of Hong Kong’s total inventory – up until September 26 when hotel quarantines were scrapped.

“Suddenly, they have no need of it,” he told the Post in an interview. “So the 26,000 rooms kind of flooded the market immediately.”

With no reopening of the border with mainland China in sight, 85 per cent of the previous mainland China market is non-existent, said William Cheng Kai-ming, chairman of Magnificent Hotel Investments.

The current 0+3 policy, which requires incoming visitors to monitor their health status for three days and take frequent tests, is deterring leisure visitors, while corporate and special event visitors contribute only a small amount of bookings, Cheng said. Staycation bookings have also diminished because locals are back to earmarking their travel budgets for overseas trips, he added.

“Even with the introduction of a ‘0+0’ policy, which is not expected any time soon, bookings or occupancies may only improve by 15 or 20 per cent, as that is how much the non-mainland Chinese market used to contribute,” Cheng said. “Unless the mainland Chinese border reopens completely, there are not going to be any meaningful bookings, and most hotels will be operating at heavy losses.”

Many may close down before year’s end, Cheng said.

Only the introduction of a 0+0 policy will bring short-term travellers to Hong Kong and fill the hotels, which would send long-stay guests back to serviced apartments, Sun said.

Signature Homes expects to add 1,000 more units, or 500,000 sq ft to its portfolio by the end of 2023, boosting the total to about 3 million sq ft, Sun said. These additions include a hotel, which he declined to name, that may be turned into serviced apartments and a new development in Cheung Sha Wan.

Another developer, CK Asset, early this month filed an application with the Town Planning Board to convert its Harbourview Horizon Suites in Hung Hom from a hotel to a mix of residential and hotel units.

Signature Homes has spent “hundreds of millions” since March 2021 on renovating flats at Dynasty Court in Mid-Levels. The first batch of 34 units has been fully leased.

Residential leasing landlords have seen the proportion of mainland and local tenants rise from 25 per cent in 2018 to 40 per cent now, with the rest being foreign tenants. They foresee that proportion staying as it is for a while.

For serviced apartments, the proportion of mainland and local tenants is about 30 per cent to 40 per cent. But local tenants make up half of the total at some properties.

Rents in Hong Kong have dropped by 5 to 10 per cent since 2018 amid the 2019 social unrest and Covid-19, Sun said.

(South China Morning Post)

嘉湖海逸酒店 獲批改住宅涉1102伙

北部都會區發展加速，城規會昨日批出長實 (01113) 位於天水圍的嘉湖海逸酒店改裝成住宅的申請，有望在短中期內帶來約1,102伙供應。

嘉湖海逸酒店在2000年開幕，至今約22年，由兩座酒店及基座的「+wo嘉湖」商場組成，長實在2020年底曾經獲城規會批准重建成為摩天住宅大廈，提供5,000伙，到今年中再以能夠提供短期供應為由，再提交改裝方案，大致是將每間酒店房間改裝成一個分層住宅單位。

該申請昨日獲得城規會的有條件批准，相信包括交通影響評估、渠務、消防等一般程序。早前地政處亦曾提醒，受項目地契所限，有機會需要進行契約修訂及補地價。

由於今次長實採用「改裝」方式，只要補地價過程順利相信項目涉及的1,102伙，很快可以推出市場。

栢麗大道准作食肆商舖

另外，尖沙咀栢麗購物大道的業主立案法團早前向城規會申請，放寬容許作為食肆及商舖之用，亦獲得城規會批准，不過由於該申請列明比例不超過一半，亦涉及地契問題，即使申請獲批後，個別商舖業主仍然向地政總署申請豁免書。

至於由爪哇 (00251) 持有的銅鑼灣皇冠假日酒店，亦獲准重建1幢樓高28層的商廈，總樓面逾16萬平方呎。

另已服務20年的九巴大埔車廠，最新向城規會申請放寬建築物高度限制，以重建1幢樓高4層的巴士廠，總樓面約56.37萬平方呎，日後提供443個巴士停車位。

(經濟日報)