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The time being for the Phoenix is reborn from the fire
2023-12-16
The Fed (Federal Reserve) meeting has just ended, and the meeting announcement declared that it will continue to keep the interest rate unchanged, and the market is expected to cut interest rates by a total of 0.75% next year, if the interest rate is cut by 0.25% each time, that will have of three times of interest rate cuts in total before mid of next year. The high interest rates, which is the nightmare that has been limiting the property market to rebound from the rock bottom.  Fortunately, this nightmare is fading away in the coming year.
As soon as the news of interest rate cuts came out, the DJIA (Dow Jones Industrial Average) reached a new high for two consecutive days, and the Hang Seng Index, which has been hovering at a low level, also rebounded. As Hang Sheng index’s rebound, investors who have been earning interest on fixed deposits will be more assured that they will be better off to look for investment opportunities in the stock or property market.
Recently, Sun Hung Kai Properties' Yoho West, which was sold in Tuen Mun, has achieved good sales results one after another, with a high quality and reasonable pricing which has attracted a great amount of attention from first-time buyers. Other developers will also follow its pricing strategy to draw customers. The property market is benefited by better business atmosphere and the transaction volume is expected to recover gradually.
In addition, the Hong Kong government has recently announced that the number of approved applicants arriving in Hong Kong through the Quality Migrant Admission Scheme has exceeded 80,000, and it is expected that the granted applicants incoming in Hong Kong under this Scheme will increase by 40,000 more until mid of next year. This great amount of new Hong Kongers will have a strong need for accommodation.
Since last year, Hong Kong stocks and properties markets have been constrained by the interest rate hike environment, their prices have been continuing to fall, and now the trend of interest rates in the coming year has a clearer direction, so it is expected that both of them will have an noticeable rebound in the coming year.
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1. Compulsory sales amounted to a record 2023-12-16 15:10:22 |
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Compulsory sales for redevelopment amounted to a record of nearly HK$23 billion this year as developers sought to expand their land banks by acquiring old buildings. That HK$22.78 billion was for at least 17 old buildings that had been ordered to undergo compulsory auctions since the beginning of the year, making it the fourth consecutive year that the figure has exceeded HK$10 billion, according to data compiled by Sing Tao Daily, sister newspaper of The Standard. Of the developers, Henderson Land Development (0012) was one of the most active, securing four buildings for more than HK$8 billion. That does not, of course, include 4 Liberty Avenue in Ho Man Tin, as it will be up for auction, as requested by Henderson, only on Tuesday at a reserve price of HK$355 million. |
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2. Hong Kong try hard to attract talent overseas 2023-12-17 14:11:40 |
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There has been a growing interest from companies in Hong Kong to attract talent overseas. According to Deel, corporations are increasingly open to global hiring, or at least hiring by time zones, to retain or expand their talent pool. “It can be used as a stop-gap measure, but also a long-term solution to secure the best talent needed,” Deel said. The top five countries and cities where HK-based companies are hiring from are Manila, Philippines; London, United Kingdom; Tbilisi, Georgia; Bangalore, India; and Dnipro, Ukraine. |
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3. Four ways to help residential market 2023-12-18 17:09:42 |
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The residential market turned more sluggish in 2H23 as buyers became more cautious amidst rising interest rates and a challenging external environment. Mass residential capital values dropped 3.1% in November, whilst luxury residential prices also fell by 4.1% in the same period. The average monthly transaction volume in the first 10 months of the year was 25% below the previous four-year average. To support the residential market, JLL laid out three suggestions for the government to consider: - Remove all cooling measures.
- Provide interest-free loans to assist the young generation of first-time buyers in getting on the property ladder.
- Prioritise on public rental housing and set a clear distinction between private and public housing markets.
- Speed up infrastructure developments in existing residential clusters, especially in Kai Tak.
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4. Red Sea risk pushing up the price of oil 2023-12-19 21:30:19 |
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Attacks on commercial ships in the Red Sea risk pushing up the price of oil and other goods, analysts have warned. Several firms have paused shipments through the route after vessels were attacked by Houthi rebels in Yemen. The world's second largest shipping line, Maersk, said on Tuesday that it would reroute some of its vessels around Africa's Cape of Good Hope. The disruption has led the US to launch an international naval operation to protect ships in the Red Sea route. Countries joining the security action - named Operation Prosperity Guardian - include the UK, Canada, France, Bahrain, Norway and Spain. |
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5. Home prices had fallen by 17 percen 2023-12-20 23:48:37 |
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Financial Secretary Paul Chan Mo-po said home prices in Hong Kong had by September fallen around 17 percent over the previous two years. The transaction volume was low and the price adjustment was gradual, he noted, which indicated an orderly correction. No panic effects or confidence issues have emerged in the market, said Chan, and authorities are monitoring the leverage and borrowing activities of developers. Drawing from past experiences, authorities have implemented multiple rounds of macro-prudential measures. So in the event of any adjustment in property prices, the impact on finances and the public should be manageable. |
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6. Lantau Island site sole to Sino Land 2023-12-23 12:37:09 |
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The Lands Department has awarded the tender for the Lantau Island site to sole bidder APEX King, a Sino Land unit. The winning bid for the site was $203m. The site is located at Lot No. 722, at Demarcation District No. 332, on Tung Chung Road, Cheung Sha and has a lot area of 19,000 sqm. The site’s minimum and maximum gross floor areas are 4,560 sqm and 7,600 sqm, respectively. It was designed for private residential purposes. |
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7. UK house prices are expected to fall in 24 2023-12-29 10:34:45 |
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UK house prices are expected to fall in 2024, according to analysts and lenders, while the cost of renting a home will continue to rise. The government's official forecaster said property prices were most likely to drop by nearly 5%, although lenders expect less of a fall. Rents on newly-let properties could go up by a further 5-6%, property experts say, following a year of sharp rises. That would limit the benefit of falling prices for potential first-time buyers. Many tenants say they have been stretched by soaring costs, limiting the ability to save for a deposit among those wanting to buy a home. |
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