Pearl of the Orient needs a revival plan

Some major housing estates in Hong Kong saw falls in valuations narrowing and even rebounding in recent weeks, a sign the local property market is being stabilized on supportive policies and expected interest rate cuts.

Among 20 bluechip housing estates, the valuations of 14 projects declined by 0.45 percent to 4.72 percent in December -- almost half of November's falls -- data from a property valuation platform of Hang Seng Bank shows.

Located in Lai Chi Kok, a 1,000-square-foot unit in Mei Foo Sun Chuen saw its valuation shrank by 4.72 percent monthly to HK$11.5 million, the most among all tracked targets. But the fall had been narrowed down compared to the 8.1 percent slide from January.

Based on the annual average sales of new homes of 16,400 from 2002 to 2023, JLL believes that there will be a “relative surplus” in Hong Kong’s housing market between 2024-2027,

Given the expected relative supply surplus, JLL said home prices in the region will face prolonged adjustment. 

JLL explained that due to the long cycle of residential development projects, the housing supply always lags behind price fluctuations. 

“When property prices are high, commencements of construction increase, and when prices are low, commencements of construction decrease. Hence, the residential completion figure exhibits a cycle that can last around a decade,” JLL said.

Some major housing estates in Hong Kong saw falls in valuations narrowing and even rebounding in recent weeks, a sign the local property market is being stabilized on supportive policies and expected interest rate cuts.

Among 20 bluechip housing estates, the valuations of 14 projects declined by 0.45 percent to 4.72 percent in December -- almost half of November's falls -- data from a property valuation platform of Hang Seng Bank shows.

Located in Lai Chi Kok, a 1,000-square-foot unit in Mei Foo Sun Chuen saw its valuation shrank by 4.72 percent monthly to HK$11.5 million, the most among all tracked targets. But the fall had been narrowed down compared to the 8.1

China's property market drop may happen at a slower pace this year, said Lian Ping, chair of the China Chief Economists Forum.

In an article in China Real Estate Newspaper, economists led by Lian said big cities such as Shanghai and Hangzhou might take the lead in stabilizing prices for new homes ahead of the rest of the country.

They expect that the annual property sales may fall by around 5 percent due to price cuts and promotions by real estate developers while significantly narrowing from the end of last year.

In the secondary market, a V-shaped reversal may occur as prices are expected to fall the most in the second quarter, they noted, adding that the annual decline will come in around 2 percent, narrowing by

Amid an economic downturn, shop rents in core areas of Hong Kong are seeing significant declines and creating opportunities for an increase of eyecatching lease deals in the retail market.

International giants and top brands are staking out strategic locations in Hong Kong's premier districts such as Central, Tsim Sha Tsui and Causeway Bay, snapping up large retail spaces.

That allows them not only to set themselves apart with a possible statement on the grandeur of luxury but also gives them a chance to possibly pioneer innovative retail approaches.

Chanel is one such brand, setting itself up on the ground and first floors at Causeway Bay's Capitol Centre in June by committing to a three-year lease at a monthly rent of more than HK$3 million - which, despite the money involved, is actually much lower than the HK$13.8 million the space fetched at its peak.

London's 5 million (HK$49.57 million) plus residential market segment saw 5.7 billion in turnover last year, down slightly from 2022 yet still surpassing the pre-pandemic average, according to service provider Savills.

Despite the 2023 environment of rising interest rates and super-inflation, the London luxury real estate market remains red hot.

The government greenlighted the Stamp Duty (Amendment) (Residential Properties) Bill 2023, which implements adjustments to the demand-side management measures for residential properties.

The adjustments include shortening the applicable period of the Special Stamp Duty from three years to two years; reducing the respective rates of the Buyer’s Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) from 15% to 7.5%; and providing a mechanism to suspend the payment of the BSD and NRSD for income talent acquisition of residential properties in Hong Kong.

Secretary for Housing Winnie Ho said the adjustments to the demand-side management measures under the bill were made concerning the overall residential property market situation