Hong Kong homebuyers show tepid demand for new units with prices expected to fall in the fourth quarter

Out of 118 units available at One Innovale-Cabanna in Fanling, 66 changed hands on Saturday, and none sold at Tuen Mun and Kowloon City communities

Property sales are expected to recover slightly in the fourth quarter as housing prices drop by 1 to 2 per cent, property agency said

Hong Kong new home sales turned out to be tepid on Saturday, as rising interest rates and weaker economic growth dampened consumer demand despite lower prices offered by developers.

Out of 118 offerings at One Innovale-Cabanna in the Northern Metropolis, Fanling, 66 were sold on Saturday – just 56 per cent.

Although it was the cheapest new property launch since September 2021 in the city, buyers are seen cautious amid a prolonged down cycle in the local real estate market, which is forecast to plummet to a 27-year low this year according to a property agency.

Meanwhile, not a single unit was sold at two other projects – Grand Jeté in Tuen Mun on the western fringe of Hong Kong’s New Territories and Allegro in Kowloon City – on Saturday.

Rising interest rates and slower economic growth are weighing on buyers’ confidence, a property agent said.

“Some buyers are trying to observe the interest rate hikes in the US in November and whether Hong Kong will follow [with its own increases],” the agent said. “The fluctuation of the stock market and the overall economic trend also make people wait on the sidelines.”

Hong Kong’s property market was hit hard by the coronavirus pandemic in the first half of the year and is expected to further bear the brunt of rising interest rate hikes. The Hong Kong Monetary Authority has raised its base interest rate five times this year to 3.5 per cent, a 14-year high. Commercial banks such as HSBC and Bank of China (Hong Kong) raised their prime rates last month to a four-year high, making it costlier to fund big-ticket purchases such as housing.

The city’s economy is also under pressure amid a worsening external trade environment, as the government downgraded its full-year economic growth to between 0.5 per cent growth and 0.5 per cent contraction from the previous 1 to 2 per cent expansion.

The units at Grand Jeté and Allegro were leftovers after previous rounds of sales, which were less attractive compared with the new launches amid the current sluggish market, the agent said.

One Innovale-Cabanna, developed by Henderson Land Development, has recorded the cheapest offering price of a new property since September 2021 at just HK$2.76 million (US$351,600) for 186 sq ft of space. It was the lowest entry price after Artique in Sheung Shui in September last year at HK$2.43 million.

The project was 11.3 times oversubscribed, receiving 1,387 bids as of Friday. The units ranged from studios to three-bedroom units, between 186 sq ft to 683 sq ft. After discounts of up to 7 per cent, they were priced at between HK$2.76 million and HK$9.42 million, with an average price of HK$13,428 to HK$15,400 per square foot.

The offerings of 80 units at Grand Jeté, from CK Asset Holdings and Sun Hung Kai Properties (SHKP), comprised five units with gardens. The rest were studios and standard units with up to three bedrooms.

After a 17 per cent discount, the selling prices ranged from HK$3.93 million to HK$10.12 million, with average prices per square foot between HK$12,888 and HK$17,098.

Country Garden’s Allegro put 50 units on sale priced from HK$5.68 million to HK$10.97 million, or HK$22,678 to HK$22,080 per square foot.

Sales are likely to recover slightly in Hong Kong in the fourth quarter with an expected 1,000 transactions, the agent predicted. Housing prices are expected to dip 1 to 2 per cent, compared with the 5 per cent drop from August to September, the agent  said.

(South China Morning Post)

啟德住宅地突招標 估值跌價15% 業界：經濟前景未明 財團出價保守及審慎

政府早前成功將啟德3幅商業地改劃作住宅發展，當中2幅已納入賣地表，地政總署昨日公布，推出啟德2A區4號、5 (B) 號及10號合併用地招標，涉及可建總樓面約141.8萬方呎。業界人士指，在疫情及加息等不利因素影響下，樓市及經濟前景未明，參考該項目鄰近的土瓜灣項目以低價批出，料財團出價保守及審慎，並下調估值15%。該地皮綜合市場估值約138.96億至170.16億，每方呎估值約9800元至1.2萬。

啟德區近年有多幅商業地以流標收場，政府早前計畫將區內5幅商業用地改劃住宅發展，其中3幅成功改劃，其中曾以商業地方式推出、並以流標收場的2A區4號、5 (B) 號及10號合併招標地皮，政總署昨日以住宅地方式推出招標，將於下周五 (11月4日) 開始招標，12月16日截標。

估值約138.96億至170.16億

上述地皮由三個地塊組成，並合併成一個項目招標，佔地規模較大，地盤面積約21.44萬方呎，涉及可建總樓面約141.8萬方呎，並不包括將由買方按照賣地條件所興建的兩所安老院舍暨日間護理單位、家長 / 親屬資源中心和留宿幼兒中心的政府地方的樓面面積；該項目料可提供約1750伙，是今季賣地計畫推出住宅地中最大。該地鄰近港鐵屯馬綫宋皇臺站，交通便利，料日後可享九龍城一帶都市景。

不過日前市建局土瓜灣榮光街/崇安街發展項目，以每方呎樓面地價8571元批出，由信和及招商局置地合組的財團以23.88億投得，地價對比今年3月由長實投得的同區發展項目，當時每方呎樓面地價約11382元，短短約7個月該區每呎地價下跌24.7%。業內人士指，啟德地皮面積大，在目前市況下，財團出價保守及審慎。該地皮綜合市場估值約138.96億至170.16億，每方呎估值約9800元至1.2萬，對比早前每方呎估值約1.2萬至1.4萬，估值下跌約15%。

有測量師表示，由於附近的土瓜灣項目低價成交，加上目前市況前景未明，受一連串不利因素困擾，更影響項目估值，因此下調估值約15%；另外，啟德的地皮面積更大，涉及投資額多，料入標財團不多，相信財團出價保守及審慎，亦不排除財團以合組方式入標，以分散風險。

財團或合組入標

另一測量師說，地盤發展規模大，可建約1750伙，相信成功出售後，對供應有一定幫助，但看房屋局數字，施工量因供應量提升及貨尾單位銷售較慢而急劇放緩。參考鄰近榮光街項目以低價批出，預計今次啟德大型項目發展商出價更傾向審慎。

(星島日報)