Hong Kong's residential property market remained robust over the weekend as homebuyers snapped up nearly all flats put on sale at The Pavilia Farm phase three in Tai Wai yesterday.

New World Development (0017) collected about HK$2.7 billion after selling 169 out of 173 flats on offer at the third phase of The Pavilia Farm above Tai Wai Station, with one buyer forking out HK$54 million for three flats.

NWD had received about 30,500 registrations of intent from potential buyers for the 173 flats, making them 175 times oversubscribed, and the highest number of registrations since 1997.

The 173 flats include 170 flats in the fourth price list and three flats that were given up by previous buyers.

The 170 flats in the fourth price list were offered at an average price of HK$24,858 per sq ft after a maximum 20 percent discount is applied, 24 percent higher than the first price list.

NWD had recorded three cases of forfeited deposits totaling around HK$1.38 million over three flats at the third phase. The three flats were offered at between HK$7.91 million and HK$11.84 million. The preliminary deposits are equivalent to 5 percent of the purchase prices.

In the secondary market, an property agency reported 16 secondary deals at 10 blue-chip housing estates over the past weekend, down by 20 percent week-on-week.

Among the deals, a 717-sq-ft flat at Mei Foo Sun Chuen in Lai Chi Kok changed hands for HK$10.53 million, or HK$14,686 per sq ft.

The seller will gain HK$4.98 million after holding the property for 11 years.

Meanwhile, the full opening of the Tuen Ma Line on June 27 is propping up transactions in Kowloon City District.

A 478-sq-ft flat at 18 Farm Road in To Kwa Wan fetched HK$9.8 million, or HK$20,502 per sq ft, about 10 percent higher than the bank valuation. The seller bought the flat for HK$4.25 million in 2010 and will gain HK$5.55 million. The seller decided to sell the flat as the Tuen Ma Line is to launch in full at the end of June, according to the property agency.

(The Standard)

Hong Kong property stocks enjoy value revival as they hitch ride on economic rebound with foreign funds on the prowl

The Hang Seng property index has returned 12.8 per cent this year, outperforming the local market’s blue-chip benchmark

Analysts are bullish on the prospects of developers with shopping malls in their portfolio as latest e-voucher scheme seen propelling retail sales

Hong Kong property stocks are enjoying a value revival as investors pay the highest price for their underlying assets in more than a decade. Strong response to new residential projects, more spending vouchers, and a return of foreign funds could fuel that momentum.

The price-to-book ratio of Hang Seng Property Index members has risen to 1.8 times this year, according to data compiled by Bloomberg, a level not seen since they averaged two times in 2009. In pandemic-stricken 2020, they slumped to a four-year low of 0.7 times.

Analysts at DBS Bank and Goldman Sachs are upbeat about the market outlook, saying efforts to revive consumption will translate into higher stock prices. The Blackstone Group’s HK$23.7 billion (US$3.05 billion) bid for Soho China also signalled cash-laden funds are on the prowl for bargains.

“The property market remains strong with large amounts of liquidity chasing assets like real estate,” said Raymond Cheng, head of Hong Kong and China research at CGS-CIMB Securities. “There is still room for Hong Kong property stocks [to appreciate], particularly for developers with a large presence in the residential sector.”

Hong Kong’s economy is on the mend, recovering from several quarters of recession brought on by the social unrest and the pandemic. The city’s economy expanded by 7.9 per cent in the first quarter, the most in 11 years, while new home sales are rising at the fastest pace in two years.

Measures to support domestic consumption, such as the latest round of e-voucher scheme, has brightened the outlook for retail sales, which rebounded 12.1 per cent year on year in April. This bodes well for share prices of developers with shopping malls in their portfolio, DBS said.

“The upside has not been completely priced in,” said Jeff Yau Cheuk-man, property sector analyst at DBS Bank (Hong Kong). The situation in Hong Kong continues to improve and investors are showing a renewed interest in this sector, he added.

The Hang Seng Property Index has returned 12.8 per cent this year, outperforming the broader Hang Seng Index, which has gained 7.4 per cent. If annualised, the gauge could record its best year since 2017, according to Bloomberg data. In the US, the real-estate services subsector of the S&P 500 Index has risen 37.7 per cent this year, compared to a 11.7 per cent increase in the main gauge.

Hong Kong’s e-voucher scheme, designed to boost local spending and accelerate the recovery, will offer every adult Hong Kong resident HK$5,000 in spending vouchers, benefiting 7.2 million people. The registration for the scheme is set to begin in July.

Hysan Development, the biggest landlord in Causeway Bay and operator of the Hysan Place and Lee Theatre shopping centres, would particularly benefit from the consumption boost, Yau said. Retail properties made up 30 per cent of its 4.5 million sq ft of portfolio at end-2020.

The stock has risen 5.3 per cent this year to HK$29.95. DBS Bank has a buy rating with a target price of HK$35.80, representing a 19.5 per cent upside. Yau said that the worst is probably over for the retail sector, which means leasing incomes are due for a rebound.

Sun Hung Kai Properties has risen 19.7 per cent this year to HK$119.70. The developer has 12 million sq ft of retail space across Hong Kong, including IFC Mall in Central and New Town Plaza in Sha Tin. Goldman has a buy rating and a target price of HK$151.

The strong performance of Hong Kong developers this year has been driven by a notable pickup in property sales and prices, and low interest rates, Goldman analysts led by Gurpreet Singh Sahi wrote in a report earlier this month.

“We expect this outperformance to continue as they are in the early stages of a positive inflection, with improving earnings driven by rising transactions in the Hong Kong residential market, improving property price outlook, and retail sales recovering,” the US bank said.

New residential project launches by the city’s biggest developers this year have received strong response from investors. New World Development has been a stand-out, selling all batches at

The Pavilia Farm project atop the Tai Wai MTR station.

New World Development, which also operates the K11 Mall in Tsim Sha Tsui, has soared 11.5 per cent this year to HK$40.25. Goldman Sachs and CGS-CIMB Securities are bullish on the stock, giving the stock a 31 to 39 per cent upside based on their price targets.

(South China Morning Post)

MTR Corp says Central harbourfront site bid did not involve government board members to avoid conflict of interest

MTR joined Wharf REIC and Chinachem Group consortium to bid for the prime Central harbourfront site

Board members with conflict of interest were excused from the part of the meeting at which the project was discussed and the decision to submit a bid was taken

Government board members were absent from meetings related to the discussion and decision to bid for a prime site in Central, the MTR Corp said to allay public concerns about conflict of interest.

The rail operator and property developer, in which the Hong Kong government holds a 75 per cent stake, issued a statement in response to media queries over potential conflict of interest after it said it had taken part in the government land tender for the New Central Harbourfront Commercial Site 3. The decision to bid was based on purely commercial consideration, it added.

It was the first time since the MTR’s formation in 1975 that the company had taken part in a government land bid. It formed a consortium with Wharf Real Estate Investment Company, a unit of the Woo family’s Wheelock and Company, and Chinachem Group, to submit a bid for the plot.

“When the decision to submit a bid for the project was deliberated by the MTR’s board of directors, those board members who had an actual or potential conflict of interest in the project (including all government board members) did not receive the relevant board papers and were excused from the part of the meeting at which the project was discussed and the decision to submit a bid was taken,” the MTR said on Saturday.

The site, which can yield 1.61 million sq ft of gross floor area, has been valued at between HK$37 billion and HK$55 billion (US$7.1 billion). It is likely to set a record as the most expensive in the city’s history, according to property consultants.

MTR said that as this was a landmark project located in Central, next to Two International Finance Centre (IFC2) which was developed and managed by the company, “it will bring synergies to the company’s existing business and further reflect the MTR’s community development experience in Hong Kong.”

MTR, which owns the land, jointly developed the IFC2 as part of a consortium led by Sun Hung Kai Properties and Henderson Land Development.

MTR said that its bid partners Wharf REIC and Chinachem Group have their own strengths and bring synergies to the project’s development and management.

MTR’s board members include Secretary for Financial Services and the Treasury Christopher Hui Ching-yu, Secretary for Transport and Housing Frank Chan Fan, Commissioner for Transport Rosanna Law Shuk-pui and Permanent Secretary for Development (Works) Lam Sai-hung.

Under the government’s “two envelope” approach for the sale of the Central harbourfront site, submitted bids will be weighed equally for design and price.

The 516,316 sq ft plot that includes the General Post Office has attracted six bids from some of Hong Kong developers owned by the city’s wealthiest families.

Other bidders include Sun Hung Kai Properties, Hong Kong’s largest developer by market value and controlled by Kwok families. CK Asset (Holdings), one of the two flagship companies owned by Hong Kong’s richest tycoon Li Ka-shing. Henderson Land, founded by the second-richest tycoon Lee Shau-kee is also taking part. Sino Land, controlled by the family of Robert Ng Chee Siong, submitted a joint bid with Great Eagle Holdings of the Lo family, as well as the Chinese state-owned enterprise China Merchants Group.

(South China Morning Post)

For more information of Office for Lease at International Finance Centre please visit: Office for Lease at International Finance Centre

For more information of Grade A Office for Lease in Central please visit: Grade A Office for Lease in Central

英超市縮業務 轉租觀塘海濱匯

疫情下甲廈租務新需求弱，成交多來自搬遷或收縮規模個案。觀塘海濱匯錄兩宗租務，其中英國超市租用2萬平方呎樓面，屬縮減業務，呎租約26元，亦較高峰回調兩成。

市場消息指，觀塘海濱匯錄兩宗租務成交，其中9樓一單位，面積約2萬平方呎，以每平方呎約26元租出。該廈於2019年落成，屬全海景辦公室，亦獲多個跨國企業租用，高峰期呎租達35元以上，現已回調約兩成。據悉，新租客為英國超市Sainsbury's，該品牌原租用同區國際貿易中心低層全層，涉及約3.6萬平方呎，是次同區搬遷屬縮減業務，可節省租金開支。

新傳媒集團 租同層3.6萬呎

該廈另一宗租務來自同層，涉及約3.6萬平方呎樓面，以每平方呎約26元租出，租客為新傳媒集團。據悉，該集團原使用觀塘鴻圖道82號新傳媒集團中心，物業由英皇持有。今年4月英皇以以5.08億元沽出物業，總樓面面積約8.95萬平方呎，呎價約5,676元，由外資黑石基金購入，並打算把物業轉作迷你倉業務，故集團需尋找新辦公室，現租用海濱匯樓面。

疫情下各國仍採入境限制措施，跨國企業暫緩擴充，加上有需要控制成本，故甲廈新租務成交甚少，絕大部分來自同區搬遷，或縮減業務。消息指，觀塘國際貿易中心低層全層，面積約3.6萬平方呎，以每平方呎約30元租出。據悉，新租客為Farfetch網購平台，包括女士名牌服裝、首飾等，而公司原租用黃竹坑物業，如今整合業務加上提升寫字樓級數，搬至觀塘區。

香港鑽石會大廈 呎價30215

商廈買賣方面，消息指，香港鑽石會大廈低層，面積約4,137平方呎，以約1,250萬元成交，呎價約30,215元。另代理表示，有業主放租觀塘鴻圖道83號東瀛遊廣場極高層全層連三個車位，面積約10,875平方呎，意向租金約25萬元，每平方呎租約23元。

港島區甲廈租務上，中環中環中心極高層01室，面積約2,161平方呎，以每月約16.8萬元租出，呎租約78元，屬近期該廈較理想租金水平。另金鐘統一中心中層01室，面積約2,576平方呎，以每呎約35元租出。

(經濟日報)

更多海濱匯寫字樓出租樓盤資訊請參閱：海濱匯寫字樓出租

更多國際貿易中心寫字樓出租樓盤資訊請參閱：國際貿易中心寫字樓出租

更多東瀛遊廣場寫字樓出租樓盤資訊請參閱：東瀛遊廣場寫字樓出租

更多觀塘區甲級寫字樓出租樓盤資訊請參閱：觀塘區甲級寫字樓出租

更多香港鑽石會大廈寫字樓出售樓盤資訊請參閱：香港鑽石會大廈寫字樓出售

更多中環區甲級寫字樓出售樓盤資訊請參閱：中環區甲級寫字樓出售

更多中環中心寫字樓出租樓盤資訊請參閱：中環中心寫字樓出租

更多中環區甲級寫字樓出租樓盤資訊請參閱：中環區甲級寫字樓出租

更多統一中心寫字樓出租樓盤資訊請參閱：統一中心寫字樓出租

更多金鐘區甲級寫字樓出租樓盤資訊請參閱：金鐘區甲級寫字樓出租

許榮茂減17%租出中環中心

市場人士指，世茂集團董事局主席許榮茂旗下中環中心1個單位，以每方呎78元租出，較舊租金減17%，上述租賃涉及中環中心5601室，建築面積2161方呎，丟空3個月後獲新租客垂青，月租16.8萬，平均呎租約78元，舊租客為資產管理公司，約滿遷出，舊租金每月21.18萬，平均呎租約98元。

有代理指，近期商廈市況有所改善，中環中心呎租較去年中谷底反彈逾20%，去年8月，1個低層單位呎租低見40元，惟許氏最新租出單位位處中層，景觀開揚，去年中同類型單位市值呎租60多元。

(星島日報)

更多中環中心寫字樓出租樓盤資訊請參閱：中環中心寫字樓出租

更多中環區甲級寫字樓出租樓盤資訊請參閱：中環區甲級寫字樓出租

觀塘東瀛遊廣場全層放租 平均每呎意向23元

政府銳意將九龍東打造為CBD2，加上觀塘千億重建項目正進行得如火如荼，區內商機無限。代理表示，觀塘鴻圖道83號東瀛遊廣場極高層全層連3個車位放租，面積約10875方呎，意向租金約25萬，平均呎租約23元。

代理表示，單位間隔四正實用，實用率高達約80%，外望開揚海景，獨立全層私隱度極高。單位樓底極高，達約3.85米，適合上市公司及跨國企業作為集團總部用途。大廈設有5部客梯及1部貨梯，用戶上落極方便，加上設有4層停車場，提供123個私家車位及8個貨車位，方便駕駛人士出入。

意向月租25萬

根據該代理資料顯示，今年首5個月工廈整體售價走勢累升3.3%，跑贏租金的累跌2.5%。該行預期，本港疫情暫見穩定，相信工廈租售價將可繼續造好，若稍後落實通關，租售價可望重回正軌。

首5個月工廈呎價共有七區錄累積升幅，其中以荃灣區升幅最顯著，今年1至5月累升4.8%，最新報4161元，按月升2.2%。其次為累升4.4%的屯門，最新報3263元，按月升2.4%。另有兩區錄累積跌幅，當中紅磡及土瓜灣跌幅最明顯，累跌3.8%，最新報4970元，按月跌2.4%。長沙灣首5個月持平，最新報5980元，按月跌0.1%。

(星島日報)

更多東瀛遊廣場寫字樓出租樓盤資訊請參閱：東瀛遊廣場寫字樓出租

更多觀塘區甲級寫字樓出租樓盤資訊請參閱：觀塘區甲級寫字樓出租