Coronavirus fears will further slow Hong Kong’s sluggish construction work, say analysts, as property transactions slump to 13-month low

Property transactions in Hong Kong fell to a 13-month low as analysts warned the coronavirus outbreak is likely to further derail the world’s most expensive housing market.

The value of all properties changing hands in January dropped 17 per cent to HK$29 billion, while the number of transactions slipped to 3,776 from 3,908 a month earlier, the Land Registry revealed on Tuesday.

Meanwhile, data from the Transport and Housing Bureau showed a total of 13,600 new flats were built last year, the lowest number since 2015.

That was a drop of 35 per cent from the previous year, as developers held back in a housing market rocked by months of social unrest, the effects of the US-China trade war, and an impending vacancy tax that would penalise them for harbouring unoccupied, finished apartments.

Now the viral outbreak that started in Wuhan, China, and has infected at least 15 people in Hong Kong looks set to further dampen sentiment in the world’s most expensive property market.

New World Development announced it would stop construction work at its sites from Tuesday afternoon for two weeks to minimise the threat of the virus.

It was “a proactive measure to better protect the health of our staff and their families,” New World said in a statement. It added: “We will review the development of the epidemic on a weekly basis and may adjust the reopening day of our construction sites if required.”

Some contractors have had to stop work as they failed to get a government permit while civil servants worked from home last week, according to a consultancy firm.

“They expect the situation will continue as most business will be disrupted until the end of the coronavirus,” the consultant said.

On January 28, the government ordered civil servants to stay away from the office for a week as part of efforts to minimise the spread of the disease. Government offices began to resume work this week.

The release of the construction data itself had been delayed from January 31 to today because of the special working arrangements.

In the week ended February 2, sales of used homes dropped to a 23-week low of just 51 deals across 50 housing estates tracked by a real estate agency firm.

“Prospective buyers are reluctant to go out to view flats as the government advises people to avoid public gatherings during the outbreak of the coronavirus,” the agent said.

The health emergency is also likely to disrupt shipments of vital construction materials, another agent said.

“The latest coronavirus will somewhat slow the construction activities in the first quarter since imports of some materials and appliances, in particular from China, will not be as smooth as expected,” the agent said. “However, local construction activities are expected to pick up in the second quarter and thereafter.”

The consultant said last year’s fall in construction of new homes was down to a combination of the impending vacancy tax, protracted anti-government protests and the US-China trade dispute.

“As developers acknowledged these negative factors would dampen buying demand, there were no incentives for them to build fast. On the other hand, developers would be liable to pay vacancy tax if their completed units remain empty for six months,” he said.

The government proposes levying a tax of 5 per cent of a flat’s value if it is left empty for six months or more after it receives an occupation permit, to stop developers from hoarding completed but unsold properties, and to ease the city’s housing shortage.

The consultant does not believe the low completion rates will push up prices.

“The upward pressure on home prices would be offset by the depressed market sentiment,” he said.

The official price index for used homes dipped 1.7 per cent to 378.5 in December, according to the Rating and Valuation Department.

Panic-selling has seen some flats change hands at large discounts as homeowners fear prices could fall further in the coming months.

In Tung Chung, a 736 square-foot unit at Caribbean Coast was sold for HK$7.18 million, after the vendor slashed the price twice from the original asking price of HK$9.5 million last April.

“The owner reduced the price again last week in view of the coronavirus becoming more serious. The flat finally sold without the buyer even viewing the unit,” another agent said.

(South China Morning Post)

Masks order for close of Lohas Park tenders

The tender submission for Phase 12 of Lohas Park in Tseung Kwan O will end today but there will be a special arrangement for media interviews.

The MTR Corporation (0066) said media personnel should wear masks and take temperatures at the press briefing.

The residential project has a gross floor area of 961,100 square feet and will offer up to 2,000 flats.

Meanwhile, buyers are walking away from home purchase deals as the Wuhan virus crisis continued to weigh on the lackluster property market.

A potential purchaser forfeited deposits of about HK$490,000 after cancelling the purchase of a 318-sq-ft flat at L'aquatique in Tsing Lung Tau, which was priced at HK$4.87 million.

In the primary market, mainland developer Minmetals Land (0230) will apply for pre-sale consent for the Shung Shun Street Project in Yau Tong, which will provide about 690 flats and is expected to hit the market in the third quarter.

Minmetals Land said it will not provide nano flats, and the studio flats will measure at least 230 sq ft.

Property markets in Tai Wai and Diamond Hill are expected to benefit from the opening of the first phase of the Tuen Ma Line, property consultancy said.

In the luxury property market, a 3,780-sq-ft home at Crown of St Barths in Ma On Shan sold for HK$118.8 million, or HK$31,429 per sq ft, by tender.

In the secondary market, a 384-sq-ft flat at Chelsea Court in Tsuen Wan changed hands for HK$5.9 million, or HK$15,365 per sq ft, after HK$600,000 was slashed from the original asking price.

The number of licensed real estate agents in Hong Kong dipped 0.5 percent month-on-month to 39,322 at the end of January, the lowest in 18 months.

Another property agency only recorded 15 secondary transactions at 35 major housing estates over the past week, down by 54.5 percent week-on-week, the lowest in 25 weeks, due to the coronavirus outbreak.

In the Grade-A office market, the 50 major offices recorded only three transactions in January, down by 57 percent month-on-month and almost to a two-year low, due to the Wuhan virus crisis, the agent said.

The agent expects the virus crisis to weigh on the market in the short term and dampen sentiment, says the Estate Agents Authority.

In the capital market, the one-month Hong Kong Interbank Offered Rate, which is linked to the mortgage rate, rose to 2.25286 percent yesterday.

(The Standard)

上月甲廈交投跌50% 50指標項目僅三宗買賣

肺炎事件令商廈市場觀望氣氛濃罩。據代理資料顯示，上月50大甲廈僅錄3宗成交，按月急挫逾50%，創兩年以來次低水平。

兩年來次低水平

代理數據顯示，今年1月50大甲廈僅錄3宗買賣，較去年12月份的7宗跌逾半，是近兩年以來的次低水平，僅較去年9月份的1宗為多。1月份的成交面積僅約1.7萬方呎，按月急挫64%。該行預期，疫症問題短期內仍會繼續困擾市場，並影響投資氣氛，相信第一季交投仍繼續冰封。

若以區域劃分，上月九龍區錄2宗，按月減少4宗，至於港島區錄1宗，並已是連續第3個月僅1宗買賣。上月錄得成交的大廈，分別為灣仔海港中心、觀塘寧晉中心及觀塘宏基資本大廈，這亦意味着上月高達47座甲廈「零」成交，屬去年9月份以後最多。

該代理表示，本地政治事件雖然逐漸緩和，但疫症事件爆發，對市場交投打擊沉重，部分睇樓活動也因而暫停。至於整體第一季，雖然新春假期將過，但預計市場仍然會觀望疫症事件去向，參照2003年「沙士」時的經驗，疫症大約持續數個月，市場成交大幅萎縮，代理相信今次肺炎事件亦影響市場交投步伐，第一季成交量仍會於低位徘徊。

(星島日報)

上環信德中心 比鄰港澳碼頭

上環信德中心為區內地標，因比鄰港澳碼頭，吸引不少來往中港澳三地業務頻繁的企業進駐。

信德中心位於上環干諾道中168至200號，設有兩座辦公室大樓，信德中心西翼及招商局大廈。物業樓高41層，分別於1985年及1986年落成，樓齡約34年。

全層2.3萬呎 合總部使用

其中信德中心西翼，為一梯12伙的設計，單位面積由1,354至2,559平方呎，業戶可選擇將單位打通作全層使用，全層面積約2.3萬平方呎，適合公司當作總部使用。

西翼大樓共設有16部客用升降機，以樓層分隔，每層有4部升降機可到達，有效疏導人流。而洗手間則為全層共用。

物業可享多種景觀，向北的單位可外望維多利亞港海景，景觀開揚；另一邊的單位外望為中上環一帶都市景觀。

由於物業鄰近港澳碼頭，往返中港澳三地便捷，故吸引不少有需要來往兩地辦公的企業，如貿易公司等進駐。物業亦有多國駐港領事館，如挪威及智利駐港領事館。

而物業基座為信德中心6層商場，設有不少食肆及商店，日常飲食及購物選擇一應俱全。商場連接上環港鐵站，旁邊亦設有巴士總站，比鄰亦有電車，出入相當方便。

中層戶去年7月 呎造4萬

另物業亦提供停車場設施，方便業戶駕車出入；信德中心設有行人天橋連接中上環各主要地區，四通八達。

信德中心西翼交投未見活躍，對上一宗要追溯至去年7月，一個中層09室單位，面積1,391平方呎，以5,564萬元易手，呎價4萬元。

租賃方面則較為活躍，今年1月份共錄2宗租賃，平均呎租為48元。最新近一宗成交為中低層06A室，面積1,000平方呎，以5.5萬元租出，呎租55元。

(經濟日報)

Adidas租觀塘海濱匯 呎租30

近期商廈租務以九龍區相對活躍，體育品牌Adidas剛承租觀塘海濱匯全層合共約7萬呎樓面，呎租約30元，品牌原租用港島東，搬遷可節省租金及整合業務。近日該廈連環錄成交，包括宏利保險租全層。

市場消息指，東九龍錄大手租務成交，涉及觀塘海濱匯10樓全層，及9樓部分樓面，總面積約7.2萬平方呎，成交呎租約30元。據悉，新租客為體育品牌Adidas。

該品牌原租用港島東太古城中心商廈，以及觀塘Landmark East，兩個辦公室合共涉約10萬平方呎，按太古城中心呎租約50元計，搬遷後樓面有所縮減，既可節省少許開支，亦整合業務。

宏利近日租11樓5.2萬呎

領展 （00823） 旗下觀塘商廈項目海濱匯去年入伙，大廈賣點為全層面積大，逾5萬平方呎，為同區罕有，總樓面達90萬平方呎，出租率達8成。事實上，該廈近日亦曾錄租務成交，涉及物業11樓，樓面面積約5.2萬平方呎，呎租約30元，新租客為宏利保險，該集團總部正比鄰海濱匯，早年購入全幢並命名為宏利大廈，租用海濱匯作擴充業務。

整體市況一般，近期大手租務多涉及節省開支，因此租金較便宜的九龍區，租務相對活躍。消息指，尖沙咀港威大廈中層半層樓面，面積約1.3萬平方呎，以每平方呎約55元租出。據悉，新租客為英國皮鞋品牌Dr. Martens，該品牌目前租用天后電氣道商廈，搬遷料可整合業務。港威大廈最近亦有不少機構洽租，包括友邦保險洽租大廈高層全層，面積約2.6萬平方呎，呎租料約60元。

(經濟日報)