Prices of private homes in Hong Kong fell to a 15-month low last month, government data showed, but market watchers said prices have bottomed out and will rebound in the second quarter.

The private home price index fell 2.7 points, or 0.7 percent month-on-month to 381.3 points last month amid the fifth Covid wave, data from the Rating and Valuation Department shows.

The accumulated drop in the first quarter was 3.2 percent and March home prices were also 2.1 percent lower than a year earlier.

Prices of small and medium-sized flats fell for the third month in a row and were 0.7 percent lower in March compared to that in February.

Among them, prices of flats under 40 square meters fell 0.99 percent month-on-month to the lowest since April 2020. Homes above 100 sq m recorded a 2.1 percent decrease in price last month from February, and also slid 5.9 percent compared to the same month in 2021.

The latest data mainly reflected the market situation from mid-February to early March, when the pandemic was still severe, but the drop was less than expected, a property agent said.

With Covid infections waning and the secondary market picking up, the agent believes that prices will stop falling this month and the declines may be wiped out this quarter.

Meanwhile, the official rental index also decreased 0.56 percent last month from a month ago to 178.8 points, the lowest in 10 months.

This came with the Hong Kong Mortgage Corporation set to raise the mortgage fixed interest rates for 10, 15, and 20 years by 25 basis points from next month.

A mortgage broker said that the rate hikes will have little impact on the property market as the official data showed only 0.1 percent of the mortgage loans approved in February were using fixed interest rates, while 97.3 percent of the loans' interest rates were calculated with reference to Hong Kong interbank offered rate.

(The Standard)

First land sale for nano flats in Tuen Mun failed to take off because of market woes and site’s constraints, not minimum size imposed: analysts

Authorities on Tuesday rejected all five bids for site in Tai Lam, which would have yielded an estimated 2,020 homes

Real estate association argues not all developers could afford the price, while analysts point to potential hike in interest rates and pandemic

The first plot of land earmarked for residential flats that must be at least 280 sq ft has failed to attract bids not because of the government’s new minimum size requirement but rather due to the site’s constraints and prevailing market uncertainties in Hong Kong, analysts have told the Post.

The large site in Tuen Mun was viewed as a gauge of the industry’s response to the government’s drive to stop the proliferation of shoebox homes, known as “nano flats”.

Authorities on Tuesday rejected all five bids for the residential site in Tai Lam, which would have yielded an estimated 2,020 homes, after all tenders were below the reserve price.

But real estate professors and market analysts said the minimum size rule was unlikely to have dissuaded developers from making successful bids.

A surveyor said that the total investment for the project could be HK$15 billion (US$1.9 billion) including an estimated land cost of HK$8 billion.

“Developers will be less aggressive as it will increase the investment risk in an area with limited infrastructure considering the current market condition,” the surveyor said.

Apart from the site’s location and high land cost, analysts said they believed developers were acting more conservatively due to market factors, including a potential hike in interest rates and possible new waves of coronavirus infections.

“The government assesses the latest property price [to determine the reserve price] and it doesn’t consider changes and risks in the economy … yet it is different for developers … The cancellation of this tender is due to developers’ forecast for the property market,” said Lawrence Poon Wing-cheung, a senior lecturer at City University’s division of building science and technology.

Developers also denied that the low bids were linked to the size requirement.

“The withdrawal of the plot is definitely not related to the minimum size requirement for new flats. It is mainly due to the large size of the site and its inaccessibility,” said Stewart Leung Chi-kin, chairman of the Real Estate Developers Association of Hong Kong’s executive committee. “With such a large plot, not all developers can afford it.”

He rejected the suggestion that developers were holding back their land replenishment until the new chief executive formalised the housing policy.

In Hong Kong, the world’s most expensive property market, private developers have been building tiny flats, normally just between 200 and 300 sq ft, to attract buyers who cannot afford larger homes.

Authorities introduced the minimum size requirement in December last year with the aim of enhancing living space after a rise in shoebox homes.

The 1.3 million sq ft site is about 34 minutes away from Tuen Mun station by minibus.

Last month, Goldman Sachs said the city’s housing prices would fall 20 per cent between 2022 and 2025 as borrowing costs increased and demand slumped because of rising unemployment.

Poon added that developers feared that with the possible increase in interest rates, buyers would be reluctant to purchase flats which could lead to lower demand and prices, and such concerns would make developers more conservative in their bidding.

Poon said he believed the minimum size requirement would continue, even under a new government, and that the public and developers did not have major issues with the policy. He added that the Urban Renewal Authority, a housing supplier, had not faced difficulties in making bids for land under the programme.

Chau Kwong-wing, chair professor of the department of real estate and construction at the University of Hong Kong, agreed that the plot withdrawal was due to the location, noting a lack of nearby public transport networks, as well as market factors.

“The smaller the flats are, the more difficult they are to sell. There is a possibility of removing the restriction, but this depends on the [market] environment. If [developers] give up on building nano flats, there is no need for restricting flat size,” Chau said.

According to a property agency, only 92 small flats under 280 sq ft were transacted on the secondary market between March 1 and 28, some 24 per cent lower than February. The average price of these flats eased 0.7 per cent to HK$4.03 million, bringing the decline from its May 2021 peak to 4.8 per cent.

Chau suggested that authorities could set a lower reserve price or a minimum price range in the future to increase incentives for developers bidding sites, especially when the market environment was uncertain and the site location was not ideal.

Poon said the government could observe sales of other sites before reviewing the land sales strategy.

(South China Morning Post)

Hong Kong home prices fall to the lowest level since January 2021 as distressed owners slash prices, sell at a loss

Prices fell 0.7 per cent to 381.3 in March, the lowest since 381.9 in January 2021, government index shows

Owners of 264 homes sold their homes at a loss in the first quarter, the highest since the third quarter of 2010, according to property agency

Lived-in home prices in Hong Kong fell for the third straight month in March to a 14-month low as many homeowners sold their units at heavily discounted prices or even at a loss as the city struggled to contain the fifth-wave of the coronavirus pandemic.

Prices fell 0.7 per cent to 381.3 last month, the lowest since 381.9 in January 2021, according to an index published by the Rating and Valuation Department on Wednesday. Home prices eased 3.2 per cent in the first three months of the year, wiping out the 3.19 per cent gain in 2021.

“Homeowners selling at a loss reached a new high in the first quarter,” a property agent said. “It reflects the devastating impact of the fifth wave of the coronavirus pandemic on the property market.”

A total of 264 homes changed hands at a loss in the first quarter, the highest since the third quarter of 2010, according to the agency. The average gain per residential transaction, meanwhile, fell for the third consecutive quarter to 66.7 per cent, the lowest in the past 5.5 years.

Homebuyers are staying on the sidelines in anticipation of an imminent increase in interest rates, while demand is also being affected by the rising unemployment rate and a slump in stock market.

Tough social distancing rules pushed the unemployment rate to 5 per cent in the three months ending in March, the highest in nine months. The city’s benchmark Hang Seng Index fell 6 per cent in the January to March period, which was exacerbated by panic selling following Russia’s invasion of Ukraine.

“Hong Kong home prices will fall 5 per cent in the first half with a brief respite in April,” a mortgage broker said.

The broker expects that home prices to tumble by 20 per cent over the next two years, noting that the Federal Reserve’s aggressive policy tightening timetable could bring to an end an era of cheap money that fuelled Hong Kong property prices over the last two decades.

The broker’s sentiment closely mirrors Goldman Sachs’ forecast that Hong Kong home prices would fall 20 per cent between 2022 to 2025 due to a slump in demand caused by an increase in borrowing costs and rising unemployment.

The Fed raised rates by 0.25 percentage points last month, the first increase since December 2018. It suggested it could lift rates six more times to 1.9 per cent this year.

However, property agents are optimistic, saying home prices have bottomed out.

The agent said that sales volume and prices would be boosted by the release of pent-up demand in May and June.

Another agent said that he expects activity in the primary residential market to improve from now on as more developers speed up new project launches.

More than 800 flats from four projects in Kowloon and the New Territories will be made available in the coming two weeks. It comes after the government eased Covid-19 curbs helping to reinvigorate the housing market from a three-month lull.

“Home sales will increase as buyers go on a revenge spending spree in the second quarter,” the agent said.

(South China Morning Post)

景順400萬租怡和大廈兩全層 平均每呎逾130元

疫市下罕現核心區大手甲廈租務，消息指，置地旗下中環怡和大廈高層兩全層，獲景順投資承租，涉及樓面約3.1萬方呎；市場人士估計，上址月租高逾400萬，平均每呎逾130元。

涉樓面3.1萬呎

據外資測量師行昨日發布的物業市場報告指，隨疫情走勢穩定，帶動港島區甲廈租賃交投轉活，近期市場矚目成交為美資金融投資公司景順 (Invesco) 承租中環怡和大廈3.1萬方呎樓面。

業內人士指出，上述為該甲廈44至45樓兩全層，因位處高層，坐享開揚維港景致，屬該甲廈優質單位，以市值呎租約135元計，月租高達418.5萬。

本報昨日就上述消息向置地及景順 (Invesco) 查詢，前者於截稿前未獲回覆，後者表示對消息不作回應。

此外，市場近期另一大手租務成交為高博金律師事務所 (Kobre & Kim LLP) 承租同區冠君大廈 (Champion Tower)，涉及樓面約9000方呎，以市值呎租約110元計，月租約99萬。

冠君大廈每呎110元租出

該測量師指出，市況近期回暖，主要由面積6000方呎以下小型交易支撑着高活動水平，當中，金融和法律業的租賃市場表現最好，這些企業繼續在中環擴充，儘管中環有數幢甲級寫字樓在3月底錄雙位數空置率，但中環整體空置率維持在7.2%穩定水平，與今年二月相若，表現較非核心商業區好。

(星島日報)

更多怡和大廈寫字樓出租樓盤資訊請參閱：怡和大廈寫字樓出租

更多冠軍大廈寫字樓出租樓盤資訊請參閱：冠軍大廈寫字樓出租

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

尖區新港中心中層意向2800萬

疫情持續放緩，為商廈市場釋出正面訊息，帶動部分業主亦趁勢放售。尖沙嘴新港中心中層單位以意向價2800萬放售，呎價約1.94萬，該盤同時亦以每呎約36元放租。

有代理稱，尖沙嘴廣東道30號新港中心二座中層單位，建築面積約1443方呎，意向價約2800萬，呎價約19404元，意向租金約52000元，折合呎租約36元。該代理表示，單位屬於罕有細面積單位，間隔四正靈活，雖無附設裝修，但更適合準買家依照企業需求隨意設計。

該廈配備8部高速載客電梯及停車場，用戶出入極方便。據該行統計資料顯示，該廈近期成交較疏落，對上成交需追溯至2020年12月，為該廈第二座11樓12室，建築面積2071方呎，以3231萬售出，呎價約1.56萬。

平均呎價1.94萬

此外，市場亦錄市區鋪位放售個案，另一代理表示，長沙灣青山道25至35號永勝大樓地下B號鋪，建築面積約1000方呎，以意向價約2500萬放售，呎價約2.5萬，該鋪由雜貨店承租，以租金約7.5萬計，料買家享回報約3.6厘。

另一方面，市場消息指出，荃灣沙咀道254至256號地鋪，地鋪面積約2050方呎，附設閣樓面積約1000方呎，總建築樓面約3050方呎，該鋪以分拆形式獲多家零售商承租，合共月租收入約35.3萬，呎租約115元，較舊租金上升約21%。

(星島日報)

更多新港中心寫字樓出售樓盤資訊請參閱：新港中心寫字樓出售

更多尖沙咀區甲級寫字樓出售樓盤資訊請參閱：尖沙咀區甲級寫字樓出售

更多新港中心寫字樓出租樓盤資訊請參閱：新港中心寫字樓出租

更多尖沙咀區甲級寫字樓出租樓盤資訊請參閱：尖沙咀區甲級寫字樓出租

萬科申強拍牛頭角舊樓 連毗鄰地合併發展擴區內版圖

近年政府大力發展東九龍，牛頭角一帶舊樓群成為發展商收購對象，其中，萬科香港進一步在該區「插旗」擴充版圖，最新向土地審裁處提出申請強拍定富街71至79號舊樓，市場估值逾1.1億，若連毗鄰的舊樓合併發展，可建總樓面擴展至逾9.34萬方呎，發展商指日後將重建成商住項目。

本港土地供應短缺，不少財團透過併購舊樓作重建發展；其中，萬科香港向土地審裁處申請強拍定富街71至79號舊樓，以統一業權發展，目前該財團持有約81.58%業權，市場對整個項目估值為1.12284億，餘下6個單位並未成功收購，不過其中3個屬遺產物業已於今年1月簽署臨時買賣合約同意出售，市場估值約212.4萬至956萬；意味實際尚有3個單位未收購、市場估值約222.7萬至237.2萬。

周銘禧︰發展作商住物業

萬科香港執行董事兼副總經理周銘禧表示，計畫將上述項目連同毗鄰舊樓合併發展為商住物業。

據土地審裁處文件顯示，上述定富街71至79號 (單號) 商住舊樓，鄰近觀塘道休憩處，毗鄰港鐵牛頭角站，步行前往約2分鐘，同時亦有多條巴士綫行走，交通便利，極具重建價值。現址為一幢樓高6層的商住舊樓，地下設有4個商鋪，樓上則提供約30個住宅單位，該廈早於1971年落成入伙，至今樓齡約51年。上址地盤面積約2787方呎，若以重建地積比9倍重建發展，可建總樓面約25083方呎。

連同毗鄰地可建9.4萬呎

事實上，萬科香港去年曾向土地審裁處申請強拍定富街45至47號華發樓、49至51號安賢樓、53至63號定勝樓3幢舊樓，整個項目地盤面積約7595方呎，可建總樓面約68355方呎，當時市場對該項目估值約3.59億，若連同是次申請強拍的項目計，總市場估值約4.72億。若上述富定街45至79號 (單號) 一列舊樓合併重建發展，地盤面積擴展至約10382方呎，涉及可建總樓面約93438方呎。資料顯示，連上述項目土地審裁處今年迄今接獲5宗強拍申請，對比去年同期的6宗為少。

總市場估值約4.72億

除上述項目外，周邊不少舊樓亦獲發展商收購，如宏安地產去年底曾以約4.2億成功購入定業街12至26號多幢樓高5層的商住舊樓全數業權，若以可建總樓面約46359方呎計，每方呎樓面地價約9060元。

有業內人士指出，由於牛頭角鄰近港鐵站，交通方便，區內舊樓極具重建價值，故近年吸引不少財團於區內進行收購，料未來該區將有不少重建項目登場，相信日後區內將展現全新面貌，是一個全新住宅區。

(星島日報)

大角嘴利．晴坊23商場標售

疫情走勢穩定，帶動鋪市交投氣氛向好，部分發展商亦趁勢放售旗下非核心物業，有利集團與市建局合作發展的大角嘴利．晴坊23，該項目商場平台連車位及廣告位置業權以招標形式放售，市場估值約1.2億。

估計市值1.2億

有外資代理行指出，有業主現以招標形式放售大角嘴利．晴坊23商場平台連車位及廣告位置業權，市場估值約1.2億，截標日期為今年5月13日正午12時。該項目為有利集團與市建局合作發展的重建項目，屬單幢新盤，商場平台建築面積約10701方呎。

該行代理稱，大角嘴近年發展迅速，多個住宅新盤相繼落成，常住和工作人口近12萬，隨區內各項配套日趨成熟，潛力優厚，由於大部分商業平台皆由大型發展商長期持有，洽溝機會非常罕有。

協生全層逾6000萬放售

另一方面，有代理表示，灣仔軒尼詩道107至115號協生大廈3樓全層，建築面積約4688方呎，意向價約6000餘萬，呎價約13000元起。該代理指，物業以交吉形式出售，可以買賣公司形式交易。該層負重約4kPa，備有130A三相電力，市值呎租約40至45元，該盤料對用家及投資者均具吸引力。

(星島日報)

中環德已立街鋪1.65億易手 「住好啲」楊志超等承接 每呎3.58萬市價水平

有代理稱，上述鋪位處靠近德已立街及皇后大道中交界，毗鄰為區內地標娛樂行，亦為通往蘭桂坊的必經之路，實屬中環區內最核心區地段，成交屬市價水平，惟該鋪正處交吉，加上物業大部分樓面位於一樓閣樓，對承租商戶具一定限制，料該買家購入作自用用途，「住好啲」品牌向來主攻高檔路綫，故進駐中環「插旗」，亦屬合理做法。

資料顯示，中環區內頻錄逾億元大手鋪位買賣，當中較矚目「大刁」為由中信泰富或相關人士持有的中環德輔道中141號中保集團大廈地下B號鋪，於上月初以約2.08億易手，以建築面積約3805方呎，呎價約5.46萬。

原業主於1984年12月以3739萬買入，持貨38年帳面獲利約1.7億，物業期間升值約4.56倍。

(星島日報)

更多中保集團大廈寫字樓出售樓盤資訊請參閱：中保集團大廈寫字樓出售

更多上環區甲級寫字樓出售樓盤資訊請參閱：上環區甲級寫字樓出售