Hong Kong property: residents face difficult decision whether to rent or buy this year

Some analysts feel it is the right time to buy as the market is close to bottom, and the 20 per cent decline in prices from an all-time high offsets higher mortgage rates

While rents in some areas of the city have risen, they have declined in places like Sai Ying Pun and Sheung Wan by as much as 15 to 20 per cent, a property agent says

To rent or to buy? Hongkongers will wrestle with these two choices as they weigh the pros and cons of either leasing or buying a home this year, according to analysts.

On the one hand, the decision to rent is supported by elevated interest rates because they make mortgages expensive. On the other hand, higher mortgage rates have pushed developers to price new home launches attractively to reduce their growing inventory.

“I think the market on the sales side is either at or close to the bottom,” a property agent said. “It’s close to an ideal time to buy property for self use, especially if you can get a deal below bank valuation. There’s some stressed vendors out there and some attractive deals to be had.”

On the rent side, the agent said it’s a mixed bag, adding that rents in some areas in the south of Hong Kong Island were strengthening for units with good kitchens and bathrooms.

At the same time, rents have declined in areas like Sai Ying Pun and Sheung Wan by as much as 15 to 20 per cent “as we have not seen a strong return of young expat bankers willing to spend on rentals”, the agent added.

In the first 11 months of 2023, rents in the city rose by 6.4 per cent from the end of 2022, lifting the rental index to its highest level since December 2019, according to the latest data from the Rating and Valuation Department.

The price of lived-in homes, meanwhile, fell by 5.6 per cent in the same period, dragging the government’s widely watched index to its lowest since February 2017.

Developers such as Sun Hung Kai Properties, the city’s largest by home sales and market capitalisation, have adjusted their pricing to reflect market realities such as poor buying sentiment because of the elevated mortgage rates. It recently priced flats in Yoho West, its latest residential project in Tin Shui Wai, at levels seen six years ago.

Still, some analysts feel renting is a better option in the current high-interest rate environment.

The Hong Kong Monetary Authority (HKMA) maintained its base rate at 5.75 per cent on December 14, after the Federal Reserve left its target rate in the 5.25 per cent to 5.5 per cent range following the Federal Open Market Committee’s last meeting of 2023.

It was the fourth pause since the Fed began its rate-hike cycle in March 2022. In total, the HKMA has increased the base rate by 525 basis points since March 2022, even as the city’s economy was mired in a recession.

“Despite developers offering further discounts to their primary projects, interest rates remain high,” another property agent said. “On the other hand, the rental market has been stabilising and becoming more flexible. This has made the pricing trends in the rental market more reasonable.”

For those set on renting a home this year, the agent said there were many projects, including ones at the high-end, worth checking out.

These include The Peak Plantation Road, which “appears to have an advantageous location, luxury and offers large-size houses [and] could be a top choice for those who prioritise spacious living spaces.”

Another option worth considering is Mid-Level’s Branksome Crest, particularly when its refurbishment has been completed, making it an “attractive choice, especially for those looking for a combination of quality and convenience”.

“For individuals seeking flexibility in terms of size and rental terms, West Kowloon’s Town Place seems like a suitable option,” the agent said. “With various sizes available and flexible terms, it caters to different needs and preferences.”

However, the current low property prices should encourage prospective buyers to snap up homes available on the market, another property agent said.

Investors will find ample opportunities to take advantage of the fall in home prices, the agent said.

The Hong Kong government continues to actively attract talent to Hong Kong and the relaxation of the [so-called] ‘spicy’ measures in the property market will help to boost rents and rental yield, the agent said.

In October, the government halved the buyers’ stamp duty to 7.5 per cent and waived the special stamp duty equivalent to 10 per cent of a home price for owners who resell property after two years, from three years previously.

The agent said the pressure from rising mortgage payments has been offset by lower property prices, which have fallen by 20 per cent from their peak.

“It increases the attractiveness for long-term investors to purchase properties for rental income,” the agent said. “It is a good time to buy property while prices are low.”

(South China Morning Post)

恒基17.28億奪香檳大廈業權 擴商業王國版圖 黃浩明：發展寫字樓酒店

富傳奇色彩的尖沙咀香檳大廈，去年11月獲土地審裁處批出強拍令，底價17.28億，項目昨日舉行公開拍賣，由手持「1號牌」的恒基執行董事黃浩明，在未有其他競爭無對手下以底價投得，成功統一業權發展，是今年首宗強拍個案。

尖沙咀土地新供應罕有，不少財團透過強拍途徑增加土儲，恒基併購約12年的香檳大廈，昨舉行強拍，由恒基以底價17.28億，在未有其他競爭對手下以底價投得，成功統一業權發展。

據了解，該廈A座亦獲恒基持續收購當中，料日後亦會申請強拍，並連同B座整合發展，與鄰近美麗華產生協同效應，打造其商業王國。

黃浩明於拍賣會後表示，上述地皮規劃為商業用地，將會發展寫字樓、酒店或銀座式物業，集團會考慮各種商業方案，現階段未有定案。預期放寬強拍門檻條例通過後，相信屆時強拍個案將會上升，並透露，集團有2至3宗舊樓併購項目符合新強拍門檻。

項目具重建價值

上述項目位於尖沙咀核心地段，具一定的重建價值，同時毗鄰恒基持有的美麗華酒店、美麗華廣場，料日後將會重建發展，整區可打造成集合高級酒店商場及辦公室大樓於一身，將會大大提升區內項目整體價值，並產生協同效應。

據文件顯示，整個香檳大廈早於1957年落成，至今約66年樓齡，並細分A及B座發展，而是次獲批強拍令的B座貼近美麗華酒店，地盤面積約12283方呎，涉及可建樓面約147396方呎。

該大廈現為樓高10層的商住物業，地下及地庫為商舖，1樓屬商業部分，而2樓至8樓則屬住宅部分，另外天台樓層亦有2個住宅。

項目A座面積約12283方呎，可建樓面逾13萬方呎，恒基持續收購當中；至於整個香檳大廈地盤面積約23350方呎，而屬於「商業 (6)」用途，以地積比率約12倍計算，可建樓面達28萬方呎。

涉可建樓面達28萬呎

該大廈建於50年，是當時九龍最高建築物，極具代表性，地舖賣的是相機、鐘錶等，樓上住的非富則貴，屬昔日的豪宅地段；同時亦有不少食店，高層單位皆為住宅。

據指七十年代，曾經是不少明星、名人出入消遣之地，中層單位甚至有不少名醫診所。

惟直至九十年代初香檳大廈由於樓齡漸舊，昔日高級場地開始沒落，加上尖沙咀區內日漸發展，新式商廈林立，時移世易該廈更成為一樓一鳳色情行業的根據地。

曾有不少單位被間成劏房，經營色情行業，更連日本及外國都有介紹，甚至成為尋芳客的旅遊熱點，一度名揚國際。

(星島日報)

更多美麗華廣場寫字樓出租樓盤資訊請參閱：美麗華廣場寫字樓出租

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

老牌玩具商 9億沽山頂盧吉道大宅

豪宅市場買賣氣氛升溫，市場消息透露，山頂盧吉道25及26A、B號大宅剛以約9億元易手，呎價約7.7萬元，屬近半年二手市場最大額買賣。

資料顯示，山頂盧吉道25及26A、B號，去年10月推出市場放售，物業現為一幢兩層高的獨立屋，總地盤面積約31,544平方呎，最大可建面積約11,687平方呎，總實用面積約11,487平方呎，當時業主叫價約13億元。消息指雙方議價4億元後，以約9億元易手，呎價約7.7萬元。

據了解，山頂盧吉道全段只有11幅住宅地段，其中只有4幅能夠遠眺維多利亞海景和兩岸繁華景致，上述盧吉道25及26號屬於其中之一。此外，沿着柯士甸山道駕車可以直接到達該物業，而且山道的寬度足夠容納七人座的車輛通行。

持貨25年 帳面賺7.55億

翻查資料，物業由本地老牌玩具商詹榮光家族持有，早在1999年購入，當時總作價約1.45億元，以9億元成交價計，持貨25年帳面勁賺7.55億元，期內升值5.2倍。

另外，市場消息透露，淺水灣華景園3座低層B室，業主自製複式單位，實用面積共2,498平方呎，並連約3,418平方呎特大平台，連3個車位以約6,000萬元易手，呎價約2.4萬元。

據悉，原業主為已故舖王鄧成波或相關人士，該家族早於2004年以約2,718萬元購入上述兩個單位，持貨約20年，帳面獲利3,282萬元離場。

至於九龍區方面，九龍塘窩打老道濤苑C屋，實用面積6,227平方呎，連約812平方呎花園及1,345平方呎天台，原本叫價約1.28億元放盤，議價後以1.08億元易手，呎價約1.7萬元。業主2004年以3370萬元購入，帳面勁賺7,430萬元離場。

(經濟日報)