Cross-border yuan payments in Shenzhen surpassed the four trillion yuan mark last year for the first time amid a trend that saw Hongkongers heading north to Shenzhen to eat, drink and shop.

Data from the Shenzhen branch of the People's Bank of China showed the city recorded 4.2 trillion yuan (HK$4.61 trillion) worth of cross-border yuan payments, an increase of 28.3 percent, ranking third across the country.

Yuan transactions between the two regions soared by 31.6 percent to 3.5 trillion yuan in 2023 from a year ago.

The number of non-cash payment transactions made by Hongkongers in Shenzhen increased by 222 percent to more than 35 million from 2022, with the value involved jumping 70.5 percent to 8.58 billion yuan.

This came after Walmart's Sam's Club became a popular destination among Hongkongers while Costco Wholesale's first store in Shenzhen attracted massive crowds this month.

The trend is weighing on the property market in Hong Kong. Both the number and value of shop leasing deals dropped last month, making December the second-lowest month in 2023, according to a property agency.

A total of 292 shop leases were recorded, a decrease of 13 percent compared with November. And turnover also dropped 19.5 percent to HK$31.35 million.

December was the second-lowest month last year behind only January.

But the agency said recent leases taken up by several mainland food and beverage brands will likely boost the local shop rental market.

And the vacancy rate is expected to improve with the Lunar New Year.

In the residential market, transactions at 10 major housing estates over the weekend dropped to a six-week low amid the sluggish sentiment brought by a historic downturn in the local stock market.

The agency recorded six deals in the 10 estates, a drop of 33.3 percent.

Another agency also saw deal numbers in 10 estates plunge by 30 percent to seven.

(The Standard)

Mainland Chinese buyers return to Hong Kong’s luxury property market amid signs of a pickup in activity

A penthouse at Mont Verra in Kowloon Tong sold for HK$619 million (US$79.2 million), while a home at 8 Mount Nicholson Road on The Peak fetched HK$600 million

A total of 247 luxury units, comprising 55 houses and 192 flats, are likely to hit the market this year, according to an international property agency

Hong Kong’s luxury property segment is showing signs of a revival, with mainland Chinese buyers returning to the market after an absence of a few years because of the pandemic.

Market observers expect developers to ramp up the supply of luxury property amid increasing demand and likelihood of a potential decline in interest rates later this year.

Two brand new properties totalling HK$1.2 billion (US$153.5 million) were bought by different mainland Chinese buyers last week, according to a property agent.

A 8,583 sq ft duplex penthouse at Kerry Properties’ Mont Verra, in Beacon Hill, Kowloon Tong, was sold by tender for HK$619 million, or HK$72,119 per square foot.

Another luxury villa developed by Wharf Holdings and Nan Fung Group, a 4,579 sq ft unit at 8 Mount Nicholson Road, The Peak, was also sold by tender for HK$600 million, or HK$131,033 per square foot. An identical property in the development fetched the same price in 2017, making it Asia’s most expensive residence.

“Mainland Chinese purchasers intend to buy [new] luxury homes as developers have provided a lot of discounts and rebates,” the agent said.

Hong Kong’s luxury property prices fell by around 8 per cent in 2023, and 15 per cent from the peak in July 2018, according to the agency. A total of 173 deals involving units priced at US$10 million or more were recorded last year, a 31 per cent year-on-year increase, according to another international property agency. Volumes rose 13 per cent year on year to HK$25.5 billion.

The agent said that since the government relaxed the stamp duty last October, there has been a marked increase in the proportion of buyers from the mainland, adding that the trend will gather pace this year.

Transactions rose 39 per cent month on month in December to 311, according to the latest data from the Inland Revenue Department.

The agent said these transactions are likely to have mainly involved mainland Chinese buyers and some of the deals were for luxury homes.

In his policy address last October, Chief Executive John Lee Ka-chiu announced several measures to relax the decade-old property curbs to revive the city’s sluggish market. These included halving the buyers’ stamp duty to 7.5 per cent for non-permanent residents and residents buying a second or additional home.

Eligible overseas talent are also not required to pay stamp duty on property purchases unless they fail to become permanent residents.

The rising transaction volumes could provide the tonic the market needs, according to the agent, noting that developers were still able to offload their assets at relatively good prices. The agent added luxury property prices will remain stable this year.

In view of the renewed buying interest, developers are likely to resume the sales of luxury homes in a bid to seize the pent-up demand.

Lower interest rates expected in the second half of the year will act as another catalyst. Analysts expect a cut of 75 basis points by the end of the year.

A total of 247 luxury units, comprising 55 houses and 192 flats, are likely to hit the market this year, according to the first agency.

These include one project on The Peak, the city’s most prestigious address. Wheelock Properties may offer five houses in phase 1 of No 1 Plantation Road.

In Island South, there are three projects: One Stanley with 11 blocks of 50 flats and 32 houses, 108 Repulse Bay Road with eight houses and 11A Shouson Hill Road West with three houses.

In Pok Fu Lam, there is one project comprising seven houses.

In Jardine’s Lookout, there is a project with a total of 114 units.

In Kowloon, Wharf Holdings is expected to launch phase 1 of 188 Lung Cheung Road, which will provide 28 luxury flats.

However, the actual supply may be lower as developers may suspend or postpone the launch of the project depending on the market conditions, the agency said.

Meanwhile, another agent said there will be more distressed sales of luxury property this year.

In December, a luxury flat in Mid-Levels, seized from the former lover of incarcerated Macau “junket king” Alvin Chau Cheok-wa, was put up for sale. The listed price is significantly lower than the asset’s peak valuation as creditors seek to extract their dues.

In September, receivers for a HK$680 million Mid-Levels flat, seized from Chinese tycoon Chen Hongtian for unpaid loans, sold the property at a discount of 39 per cent to the prevailing market price.

Two Hong Kong luxury properties valued at more than HK$1.5 billion owned by a company linked to distressed mainland developer China Evergrande’s founder Hui Ka-yan were also seized by a creditor in September.

(South China Morning Post)

地產代理：商舖錄292宗租賃按月跌13%

受到北上消費因素影響，本港商舖零售及消費市道復甦未見理想，12月份商舖租賃宗數及金額回落，宗數錄292宗，金額約3135萬，兩者皆為2023年按月第二低位，僅次於2023年1月，空置率個別發展，港島核心消費區改善幅度較大，以灣仔區表現最佳。

有本港地產代理表示，12月份市場共錄約292宗商舖租賃，較11月份的336宗跌13%，涉總租務金額約3135萬，較11月份3898萬下調約19.5%。較去年同期升幅顯著，宗數及金額與2022年同期的258宗及約2534萬相比，分別上升約13%及23%，反映今年度商舖租賃交投持續改善。

該代理表示，隨着北上消費人潮增多，國內餐飲品牌趁勢落戶本港，成為2024年商舖租賃「生力軍」，他們透過香港平台提升知名度，方便進軍海外市場。

國內餐飲品牌成「生力軍」

其中，旺角彌敦道601號創興廣場地下A舖，獲木屋燒烤以約26.8萬承租，其建築面積約2583方呎，呎租約104元；旺角彌敦道636號銀行中心廣場地下5號舖，面積約635方呎，以約20萬獲國內茶飲品牌店蜜雪冰城承租，呎租約314元。

2023年度商舖吸納情況較2022年為佳，去年12月，灣仔區空置率5.7%，較11月份5.71%下調0.1個百分點，與去年同期的12.87%相比，則大跌約7.17個百分點。

灣仔空置率5.7%最理想

中環區目前空置率8.18%，較2022年同期12.9%相比，減少4.72個百分點。新界區受北上消費影響，元朗及荃灣區舖位空置率上升。荃灣現時空置率4.37%，較去年同期3.56%高出0.81個百分點，元朗區按年升0.55個百分點，至12月的3.55%。

(星島日報)