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Travel clamp boosts home deals

Property agency recorded 36 secondary transactions at ten blue-chip housing estates over the four-day weekend.

Only Mei Foo Sun Chuen in Lai Chi Kok reported no deal, according to the agency.

Meanwhile, the number of transactions at the ten major estates was 15 over the past two days, down by one from a week before.

Restrictions on outbound travel stimulated home viewings and transactions in the secondary market over the four-day weekend, property agent said.

In the secondary market, a 717-sq-ft flat at Taikoo Shing in Quarry Bay changed hands for HK$13.55 million, or HK$18,898 per sq ft, after HK$850,000 was cut from the original asking price.

In Kwun Tong, a 687-sq-ft flat at Laguna City fetched HK$12.08 million, or HK$17,584 per sq ft.

In Tin Shui Wai, a 552-sq-ft flat at Kingswood Villas sold for HK$5.45 million, or HK$9,873 per sq ft, after HK$550,000 was cut from the first asking price.

In Sha Tin, a 304-sq-ft flat at City One Shatin is available for sale for HK$6.2 million, or HK$20,394 per sq ft, after HK$400,000 was cut from the initial asking price.

In Tseung Kwan O, a 406-sq-ft unit at Metro City fetched HK$7.26 million, or HK$17,882 per sq ft.

In Pok Fu Lam, an 844-sq-ft flat at Residence Bel-Air changed hands for HK$22.4 million, or HK$26,540 per sq ft.

In the primary market, a homebuyer forfeited deposits of HK$220,000 after walking away from the purchase of a 238-sq-ft flat at Emerald Bay Phase 2 in Tuen Mun. The flat was offered at HK$4.32 million.

Wheelock Properties collected about HK$143 million after selling 12 flats at seven projects in Tseung Kwan O over the past four days.

In the commercial property market, another property agency recorded eight transactions at 50 major Grade A office buildings last month, compared to five transactions in August. That hit a four-month high but remained at the single-digit level, amid political uncertainties and a bleak economic outlook, agent said.

The number of transactions of the major Grade A office buildings slumped by 54 percent year-on-year to 52 in the first three quarters.

(The Standard)

Hong Kong’s home rental market faces tough fourth quarter as recession makes redundancies more likely

With many companies reliant on government handouts to stay afloat, more redundancies are likely in the next six months, which will dent local housing demand, property agency said

Landlords have been trying to boost demand by offering incentives other than direct reductions in rent, according to property agents

Hong Kong’s residential leasing market will be under pressure in the last three months of this year as the traditional low season coincides with the worst recession

in decades, property agents said.

With many companies reliant on government handouts to stay afloat, more redundancies are likely in the next six months with obvious negative implications for local housing demand, according to property agency.

“The rental market still seems precariously balanced as tenants and landlords face uncertain prospects,” agent said. “We expect the final quarter of 2020 to present further challenges.”

The official rental index in August was down 9.2 per cent from its peak a year earlier, according to data from the government’s Rating and Valuation Department. Monthly rents for apartments have been dropping steadily.

A flat measuring 551 square feet with three bedrooms at Kingswood Villas in Tin Shui Wai was leased for HK$10,000 (US$1,290), or HK$18.1 per sq ft, last week, according to property agent. That compares with the usual HK$10,500 to HK$13,500 monthly rent for flats in that area.

A tiny apartment at Ava 61 in Cheung Sha Wan was leased for just HK$8,000 last month, 12.5 per cent lower than the market rate, another agent.

Landlords have been trying to boost demand by offering incentives other than direct reductions in rent, agents said.

“Landlords and tenants are learning to navigate the current uncertainty with one-year leases, early handovers and rent-free periods,” agent said. “The fourth quarter is likely to see more challenges and we expect rents to soften further.”

Another agency has also seen more landlords willing to provide incentives to attract tenants, rather than lowering the asking rent.

“Prices will still be under pressure because of protracted unfavourable factors, including the weak economy and rising unemployment rate, which might erode affordability over time,” agent said.

Town house rents slipped by 0.8 per cent in the third quarter, representing a sixth consecutive quarter of decline, according to property agency.

Ina Chan, the third wife of the late gaming tycoon Stanley Ho, recently leased a house at Unir Garden in Shek O measuring 2,564 square feet to Harry Lee, a member of the controlling family of Hysan Development, for HK$135,000 a month, about a third less than the rate in 2013, according to Land Registry records.

Luxury residential rents traditionally mirror movements in prime office rents in Central, where rates have fallen and vacancy has been creeping up, according to agency.

Serviced apartments have offered a series of promotions to rescue shrinking occupancy levels, such as flexible lease terms, according to the agency. They are popular given concerns over the tough operating environment faced by many businesses.

Some hotel-like apartments offer ‘two for one’ deals – a two-month stay for the price of one. Rents in this segment are continuing to drift downwards.

Activity in Hong Kong’s overall property sector is picking up speed, according to property agency.

The agency expects the total number of property transactions, including homes, parking spaces, retail, commercial and industrial properties to reach 6,500 in September, up 20.6 per cent from August.

(South China Morning Post)


指標甲廈交投按年急跌54% 代理:首九個月僅錄52