China new policy pushing up the property price

Life is returning to normal on the streets of Beijing after big changes to China's  Covid policies.

IIn the past three years. Beijing has been adopting the controls - which included sending people into quarantine centers.

Locals have expressed hope and worry about the decision to abandon key policies that dominated their lives for almost three years.

Hongkongers may be able to travel to mainland quarantine-free before the Chinese New Year holidays next year, and will need only to undergo three days of medical surveillance by then, according to sources. 

According to media reports, Beijing is now mulling further easing border control measures after announcing the 10 Covid relaxations earlier. 

One of the reports cited two mainland government sources that Chinese authorities are studying a possible quarantine-free travel trial scheme to be launched before the Chinese New Year holiday. 

And the quota offered in the trial scheme will be sufficient to meet citizens’ huge homecoming demands during the festival. 

The supply of pain and fever medication in local pharmacies has run short due to the increasing number of people buying recently.

Some pharmacies stated that the shortage could be due to the increasing demand for medicine caused by the epidemic in China.

The pharmacy staff in Sham Shui Po said the Panadol stock had run out even though they limited the amount per customer could buy and were waiting for restocking.

Hong Kong's economy is expected to grow by 3.5% in 2023, after an estimated contraction this year, the Bank of East Asia reported. 

The city’s economy shrunk by 3.3% year-on-year in the first three quarters of the year, largely due to the persisting impact of the pandemic, rapidly tightening global monetary condition, rising geopolitical tensions, and weakening global demand.

Hong Kong, Thailand and Singapore will likely be the biggest beneficiaries as China drops its Covid restrictions and reopens its economy, driving up demand for imports and overseas travel, according to Goldman Sachs Group Inc.

Hong Kong could see an estimated 7.6% boost to its gross domestic product as exports and tourism income climbs, while Thailand’s GDP may get a lift of 2.9%, Goldman Sachs economists wrote in a note.

The impact on Singapore is smaller, at 1.2%, followed by 0.7% for Malaysia, they said.

Given the continued macroeconomic issues, Standard Chartered said Hong Kong is seen to still face fiscal deficits for longer to fiscal deficits of 5.5% in the economy in 2022, starting April 2022, and 3% in 2023.

The forecast on deficits are due to a hike in government spending and weaker growth trajectory. In 2023, there are expectations that external demand will stay weak,local normalisation will be gradual, and tight monetary conditions will require offsetting by loose fiscal policy.

HKSAR ang Guandong governments have adjusted their cross-boundary goods vehicle (CBGV) transport arrangement to a point-to-point mode.

The adjustment allows drivers to pick up or deliver goods directly from or to the operation points starting 12 December.

The agreement has no imposed quota, and relevant drivers are only required to make prior appointments and declarations through the KuaJingAn system.

The Transport Department will continue to conduct COVID-19 rapid nucleic acid tests for CBGV drivers at the Hong Kong side of the boundary control points.

At least four commercial projects, involving about one million square feet in gross floor area, will be built in Sheung Wan, according to market intelligence.

One of the projects, jointly developed by Wing Tai (0369) and CSI Properties (0497), is located on Gage and Graham streets.

It will be developed into a comprehensive commercial property, offering a grade A-level office building, a hotel, retail shops and open public space and green belts, providing up to 433,500 square feet in gross floor area, Wing Tai says in its annual report.

More than 11,000 completed apartments have yet to be put on sale, which is 3.4 times the 2,500 units at the end of last year and the highest level in recent years, reports Sing Tao Daily, sister publication of The Standard.

The unsold units are spread out over 23 projects.

About 90 percent, or more than 9,700 units, are small and medium-sized. And about 45 percent - more than 5,000 units - are in the Kai Tak new development area.

Around 1 in 4 of the respondents expected a minimum salary raise ranging between 10% and 15% when they change jobs in 2023, according to a report by Randstad Hong Kong.

In the 2023 Market Outlook & Salary Snapshot Report, Randstad said 18% of the respondents are expecting a raise of 15% to 20% when switching jobs.

Meanwhile, the survey also found that the local workforce has “realistic and reasonable” demands.”

Around 35% of the respondents expect a salary increase of 5% to 10% next year to manage the increase in the cost of living.

An office space in Bank of America Tower in Admiralty has been leased out at HK$220,000 per month, or HK$37 per square foot, which is 43 percent lower than the HK$65 per sq ft asking price of a year ago amid a dearth of tenants.

The 5,968-sq ft unit includes rooms four to seven as well as room 13 on the 19th floor. Its owner bought it in October 2020 for HK$145 million, which means the rental yield is 1.82 percent, much lower than the 2.5 percent market yield of the grade A office during the third quarter, according to data from the Rating and Valuation Department.

The flat was previously owned by the American Chamber of Commerce in Hong Kong and was purchased in 1996 for HK$54.61 million.