Hong Kong falls as the stock and property market break completely

Despite facing multiple challenges locally and globally, PwC believes Hong Kong will still be able to boost its overall competitiveness, shifting its path from resilience to resurgence. 

The first step to its path to resurgence is by cementing its status as an international financial centre which it can do by strengthening its collaboration with global stock exchanges, especially those in the Middle East and Southeast Asia, through exploring dual listing opportunities.

“This can enhance the attractiveness of listing in Hong Kong as dual listing has the advantage of expanding the geographical base of investors and issuers,” Eddie Wong, PwC Hong Kong Capital Markets Services Partner, said.

Wong also recommended the implementation of the Primary Equity Connect (PEC) initiative “as it holds significant potential to enhance connectivity and promote companies to list in Hong Kong 

• Singapore has dethroned Hong Kong to become the world's freest economy, according to a report released by Canadian think tank Fraser Institute.
• For the first time since the Economic Freedom of the World Index started in 1970, Hong Kong has slipped from its number one position to second place — and its score is about to drop even further.

The Hong Kong Monetary Authority (HKMA) has retained its base rate at 5.75% in response to the US Fed’s decision to keep its target range for the federal funds rate unchanged at 5.25%-5.5%.

“The policy decision this time is generally in line with market expectations.  The Fed stressed that its future interest rate decisions would continue to be dependent on the latest economic data and the impact of continual rate hikes during the past year on the economy,” the central bank said.

“It is therefore premature to conclude whether the US rate hike cycle has been completed, and the high-interest rate environment is likely to last for some time,” it added.

HKMA, meanwhile, warned that Hong Kong dollar interbank rates might remain high for some time and advised the public to “carefully assess and manage the relevant risks when making a property purchase, mortgage or other borrowing decisions.”

甲級商廈罕錄大手買賣，由基金安祖高頓等持有的觀塘絲寶國際大廈21樓全層連3個車位，以近2.33億元售出。

市場消息指出，偉業街108號絲寶國際大廈21樓全層，建築面積約16824方呎，連3個車位，以近2.33億元成交，呎價約13820元。據悉，物業透過買賣公司形式易手，將交吉交易。

Interest rate hikes and sales launches for new builds have dragged down the secondary market, with many potential buyers turning cautious and homeowners rushing to sell - even if it comes at a loss.

Twenty housing estates saw 63 units sold off at lower prices, with the losses ranging from HK$866,000 to HK$8.96 million, or a 9.8 to 30.1 percent decrease.

Of these, luxury units were particularly hit hard.

A four-bedroom unit on a high floor that came with a storage room and sea views at The Graces in Tai Po went for HK$40 million, or HK$18,315 per square foot, which was lower than the asking price of HK$43 million, according to Ricacorp Properties.

More than 1,360 residential units were approved for presale in the primary market last month, bringing the total to over 16,000 units that have been approved for sale but not yet officially listed for sale in the market.

Kai Tak has the lion's share of units, surpassing 8,200, which constitutes 60 percent of the total.

The bulk of the rest are in Tuen Mun and Yuen Long with approximately 3,300 units and 2,000 units respectively.

Currently, there are seven new projects in Kai Tak that have been approved for sale but have not yet been officially listed.

Low prices for newly built homes and interest rate hikes sent bank valuations for flats at 17 blue-chip housing estates down by up to 4.6 percent last month.

Those 17, out of 20 estates tracked, were two more than the 15 that saw declines in July, with the falls coming in a wide range from 0.5 to 4.6 percent, according to Hang Seng Bank's online valuation platform.

Only one estate saw bank valuations rise, and that was by 2.89 percent, while the remaining two stayed unchanged.

One unit at Amoy Gardens in Ngau Tau Kok saw the largest drop in valuation, slipping by 4.62 percent to HK$4.96 million, or HK$13,299 per square foot.

The Hong Kong Trade Development Council export index fell 7.3 points to 40.5 in the third quarter of 2023 as the council attributed the fall to weak global demand, in line with weakness in exports across the region. 

The council also revised its forecast for Hong Kong’s export growth this year to between -7 percent and -9 percent. 

The latest index was recorded from the council’s quarterly survey of 500 exporters from six major industries, including clothing, electronics, jewelry, machinery, timepieces and toys. The index above 50 indicates an optimistic outlook and below 50 as pessimistic.