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The property market is ready for momentum change
2023-2-11
After the new year, the news is favorable to the economy and the overall business atmosphere is also improving. Thus, the property market is benefited by the better business environment. As a result, the second-hand transaction volume has increased, and the transaction price per square foot has also rebounded slightly, but the first-hand market still lacks focus, so the overall property market has yet to break through.
Although the economic environment is slowly improving, developers are still cautious in investing in large-scale commercial land or luxury residential site. In fact, the prospect of investing on commercial land is still bleak, so it is not very attractive to profit oriented companies. As for luxury residential properties, buyers are less obviously, and the sales period may has been dragging on for years. This is the reason why the developers are more prudent when they do the feasibility study on investing the luxury residential land.
From the point of view of developers, the return of investing in  small and medium-sized residential land has relatively stable, and the investment period is comparatively short. Therefore, regardless the scale of small and medium-sized residential land, there is always no shortage of developers to summit offers to purchase the related sites.
In the shops market, the leasing market in core business district is still under pressure because the prospect is still unclear. The second tier shops in residential districts has benefited from the reopening customs clearance, so this shops’ leasing market has a better prospect, and the transaction price per square foot is also relatively stable.
The current business sentiment is gradually improving, but this may only bring benefits for the small and medium-sized residential market. Under the full-flow customs clearance effect, the long-suppressed demands for homebuyers have been beginning to be released. Therefore, the users entering the market have been significantly faster than the previous year. These kinds of buyers are relatively safe now and the market risks are controllable. Until middle of this year, whenever the small and medium-sized residential market has been recovering steadily, luxury property market may follow to rebound.
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1. Property investment in China in 2023 2023-02-11 16:37:15 |
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China is one of the most attractive countries for property investment in the world. With its booming economy, strong infrastructure, and a large population, it is no surprise that investors are looking to China for potential opportunities. In 2023, China is expected to be an even more attractive destination for property investment.
The Chinese economy is expected to continue to grow at a rapid pace in 2023. This growth will create a strong demand for housing and commercial properties, which will drive up prices and create a lucrative investment opportunity. Additionally, the Chinese government has implemented a number of policies to encourage foreign investment in the property market. These policies include tax incentives, relaxed regulations, and access to financing.
In addition to the strong economic growth, China also has a large population and a rapidly growing middle class. This means that there is a large potential market for property investors. The Chinese government is also investing heavily in infrastructure projects, which will make it easier for investors to access and develop properties.
Finally, the Chinese government is also encouraging foreign investment in the property market. This includes providing access to financing, tax incentives, and relaxed regulations. This makes it easier for foreign investors to enter the market and take advantage of the opportunities available. |
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2. retail sales are projected to grow 13% 2023-02-12 10:01:28 |
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Hong Kong’s retail sales are projected to grow by 13% to approximately HK$395b, or about US$50.3b, in 2023, PwC reported. This will likely be driven by the easing of quarantine restrictions in Mainland China allowing inbound travellers. “Mainland China lifting quarantine requirements for inbound travellers will cause a rebound in 2023 retail sales. Tourism will begin a slow recovery with estimated 20 million visitors coming to Hong Kong, which is a third of the peak of 65 million in 2018,” Michael Cheng, PwC Asia Pacific, Mainland China and Hong Kong Consumer Market Leader, said. |
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3. Property price sets to rise 10% 2023-02-13 10:13:26 |
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Morgan Stanley has raised the property price forecast for Hong Kong this year to a 10 percent rise from 5 percent earlier. The number of transactions in the primary market will rebound by 28 percent and the secondary market by 15 percent in 2023 from a low base in 2022, as interest rate peaks and the border with the mainland reopened, the investment bank said. Rents of street shops will also rise by 5 percent this year after a 7 percent drop in 2022 and retail sales growth projection is revised up by 6 percentage points to 15 percent as mainland tourists return to the city, it estimates. |
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4. Home run for empty hotels 2023-02-14 16:27:01 |
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Some hoteliers have transitioned toward redeveloping their establishments into residential properties with the heavy toll inflicted on the financial hub's tourism and hotel industry by the stringent border restrictions between the mainland and Hong Kong. There have been at least seven hotel projects with about 4,823 units that have been repurposed into residential properties since 2020 - some of which have been successfully approved by the Town Planning Board - according to The Standard's sister publication Sing Tao Daily. Three of them belong to Li Ka-shing's CK Asset Holdings (1113), involving about 3,363 units. One of the three is the Tin Shui Wai-based Harbour Plaza Resort City, which submitted a new development proposal in June to convert the building to 1,102 residential units. |
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5. Cathay Pacific passengers soaring 2023-02-16 10:34:21 |
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Cathay Pacific carried a total of 1,031,893 passengers during January 2023, a 4,077.9% increase compared to the total of passengers carried last January 2022. The rise in numbers showed positive signs that the airline continues to rebuild and restore connectivity at the Hong Kong international aviation hub. Their released traffic figures also revealed a 3,807.3% increase in their revenue passenger kilometres (RPKs) for the same month to 4,548,192. The airline’s passenger load factor also saw a boost in numbers with a 46.4 percentage point rise to 86.8%, while its capacity, which was measured in available seat kilometres (ASKs), also grew by 1,717.1% to 5,242,810 during the last month. |
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6. KoKo Rosso aims at young buyers 2023-02-17 17:01:03 |
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Koko Rosso in Lam Tin, developed by Wheelock Properties, released its first price list yesterday, offering 88 flats with the lowest priced at HK$5.54 million after discounts. The flats are in the sixth block and each has one or two bedrooms. With gross floor areas ranging from 300 to 497 square feet, the average discounted price is HK$17,973 per sq ft. Wheelock Properties executive director Ricky Wong Kwong-yiu said prices in this list are about 10 percent lower than the first phase of the Koko Hills project, with all one-bedroom flats below HK$6 million. Wong expects the prices will be affordable for young home buyers. He hopes the batch will boost market sentiment and said Wheelock is likely to increase prices by 10 percent for subsequent batches. |
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