Henderson Land offers cheapest new flat seen in Hong Kong for over a year as property market continues to struggle

Henderson Land Development set the starting price for One Innovale-Cabanna in the Northern Metropolis, Fanling, at just HK$2.76 million

The Northern Metropolis Development is a priority project for the Hong Kong Government, aimed at providing more affordable housing

Hong Kong will see the cheapest new property launch since September 2021 at just HK$2.76 million (US$351,616), as developers fall over themselves to offer low-priced, small flats amid a prolonged downturn in home prices.

Henderson Land Development on Friday set the starting price for One Innovale-Cabanna in the Northern Metropolis, Fanling, New Territories at just HK$2.76 million for 186 sq ft of space.

“The new development has the lowest entry price after Artique in Sheung Shui in September last year at HK$2.43 million,” a property agent said. “It will be rather attractive to first-time buyers.”

The Northern Metropolis Development is a priority project for the Hong Kong Government, aimed at providing more housing and transforming the city into a more liveable and affordable metropolis.

At these lower prices, buyers can access much older flats in the secondary market.

For HK$2.6 million, one can buy a 32-year-old public housing estate unit measuring 264 sq ft at Wah Ming Estate’s Shun Ming House in Fanling, according to an online listing by the agency. For HK$2.75 million, buyers can snap up a 54-year-old flat measuring 211 sq ft in Cheong Fai Mansion, western Kowloon.

Henderson’s move comes just three days after Sun Hung Kai Properties, Hong Kong’s biggest developer by value, priced the first batch of 50 flats at its new Park Yoho Bologna project in Yuen Long at HK$13,088 per square foot after discounts.

The price is 26.9 per cent lower than the HK$17,898 per square foot for the second phase of its Grand Mayfair project launched in May, according to data from the agency. Park Yoho Bologna’s starting price is HK$3.91 million for a flat measuring 279 sq ft.

As Hong Kong’s property market correction continues, the agency estimated that its market index will slide a further 5.3 per cent to reach 160 points before the end of 2022.

The index plunged by 6.9 per cent in the past 14 weeks to 168.49, back to the level of February 2018, according to data released on Friday. Goldman Sachs expects home prices in Hong Kong to plummet by 30 per cent by the end of 2023, as sharply increasing interest rates continue pressure affordability and repel investors.

The city will likely suffer a prolonged downcycle, similar to what was seen between 1999 and 2003, due to interest rate hikes, a reversal in liquidity, weakening global and regional economies, and geopolitical concerns, another agent said in mid-October.

Cumulative house prices nosedived about 50 per cent between 1999 and 2003, or about 10 per cent a year, according to the real estate services firm.

“In the worst case scenario, home prices may sink by no less than 30 per cent in the coming two to three years, compared to the peak,” the agent said. “Home prices will not return to 2003 levels, because inflation and other factors far exceed levels seen back then.”

Among 56 housing estates along major railway lines in the city tracked by the agency, nearly 90 per cent of them saw prices per square foot down in the first three quarters, with four of them dropping by more than 20 per cent.

Park Towers in Tin Hau on Hong Kong Island saw the biggest average price decline at 26 per cent from December last year to HK$21,763 per sq ft in September.

The city saw 418 loss-making housing deals in the third quarter amid a stock market slump and increased emigration, according to another agency.

At the Ultima project in Ho Man Tin, one flat measuring 1,410 sq ft changed hands in September for HK$35 million, a loss of HK$8.28 million over the four years since it was previously sold, according to the agency.

The number of foreclosed listings in the city also rose to a 13-year high of 209 in mid-October, approaching the level seen during the 2008 financial crisis, according to the agency.

(South China Morning Post)

西營盤物業再申重建 城規會拒批

有財團早前曾就西營盤德輔道西380號物業，再度向城規會申請以地積比率15倍，重建1幢24層高的商廈，總樓面約2.25萬平方呎，但城規會昨日早上審議後，再表明拒絕批准方案。

事實上，方案曾於今年4月申請重建，遭城規會拒絕。財團其後再遞交新方案，而主要發展參數，包括地積比率、高度限制及總樓面面積均與舊方案相同。不過，最新同樣遭城規會拒絕批准方案。項目位於西營盤德輔道西380號，現劃為「住宅 (甲類) 6」地帶，地盤面積約1,498平方呎。

(經濟日報)

心光盲校建屋2改劃 多數申述表支持

早於50年代建成的薄扶林道心光盲人院暨學校，早前獲城規會批准作改劃重建為83伙臨海豪宅，而且比鄰的的一幅綠化地亦獲批改劃為4幢港大醫學院新教學大樓。城規會早前就此接獲1,946份申述，大部分申述就兩改劃表示支持。

其中心光盲人院暨學校指，對將學校改劃重建為住宅表示強烈支持，因為學校日後可以落實更長遠的目標，以提供全新及經改善的設施及服務，及為視障人士提供長遠，且財政穩健的教育及關懷。不過，機構認為，城規會可只向機構收取僅需向環境保護署遞交的報告，以免再延遲該重建計劃。

據重建方案資料，項目計劃以地積比率1.9倍重建成5幢9層高住宅大樓，住用總樓面約13.2萬平方呎，提供83間低密度豪宅。

鄰地建醫學教學樓 具協同效應

同時，就把心光盲人院暨學校旁的一幅綠化地獲批改劃為4幢港大醫學院新教學大樓，瑪麗醫院表態支持，因為院方觀察到社會上修讀醫學及護士課程的學生大幅上升，而且擬建項目可以給予下一代醫護專才提供高質素的教學及研究設施，加上日後瑪麗醫院的病人及港大醫學院學生等人可在步行距離中來往醫院及擬建項目，從而產生協同效應。

而團結香港基金等機構亦對改劃表示支持，主因是人口老化加速社會對醫護服務的要求，及由第5波疫情可見本港正面對醫院及醫護人手的短缺問題，相信港大醫學院可以訓練更多本地的相關人才。

(經濟日報)