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To stay alive by doing nothing is most important during bankruptcy's year
2024-5-4
In May, the overall transaction volume of the property market fell significantly, and developers had to expand the discounted rate of sales prices to 30% to stimulate sales volumes. The first-hand property had been sold at second-hand property prices. The sellers of the second-hand property must reduce the asking price further. Therefore, the cases of selling at losses and the negative equity will increase significantly. The latest data indicated that the number of negative equity cases in the first quarter increased by 27% to 32,000 cases.
If the current growth of negative equity cases remains at an average rate, the total number of negative equities will triple to more  than 100,000 cases in the second quarter of next year. The total number will likely break the record in 2003. Since the debt amount of negative equity per case has reached HK$ 5 million in the first quarter of this year, it is expected that each case will continue to increase to more than HK$7 million as the property prices fall further, so it is estimated that a large number of negative equities’ landlords will be officially declared bankruptcy by the end of the year.
According to the present situation, it is predictable that a certain amount of “the favored child of heaven,” who used to be the outstanding entrepreneurs in the beauty, hotel, catering, property investment and various industries, will go bankrupt after the third quarter of this year. Until the end of this year, there is a great chance that property prices will decrease by another twenty percent.
In 2003, the number of negative equity cases rose to 100,000 cases, and property prices fell by sixty-five percent. Until the next year, the number of negative equity cases will break this historical record. It is possible that the property prices will fall forty to fifty percent. This year is a typical bankruptcy year, so it is crucial for both companies and individuals to stay alive by doing nothing.
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1. Shops rents dropped to a lower level 2024-05-04 19:15:24 |
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The vacancy rate for high-street shops in Central came in for a bit of analytical preoccupation in the first quarter as diverse businesses, including luxury brands, sports-goods retailers and fitness centers moved into Hong Kong's premier financial district fueled a notable drop that offset a wave of restaurant closures. The 1.5-percentage-point drop to 7 percent stood out as the situation in other core retail areas - Causeway Bay, Tsim Sha Tsui and Mong Kok - remained unchanged or even worse, according to Cushman & Wakefield, worsened. That was bolstered by another real estate service company, CBRE, chalking up a drop in the district that it said was the largest in the vacancy rate. |
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2. Total deposits held by HK banks inched up 2024-05-05 13:23:25 |
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Total loans and deposits held by Hong Kong banks inched up in March, according to data from the Hong Kong Monetary Authority. Total deposits with authorized institutions increased by 0.2% in March compared to a month earlier. This was driven by a 0.7% increase in Hong Kong dollar deposits. However, foreign currency deposits dipped 2%, and a 2% decline in renminbi deposits in the city was recorded over the same period. Total loans and advances, meanwhile, rose by 0.8% in March. Total loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong rose by 0.8% and 0.7%, respectively. |
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3. HK Central's rents fueled a notable drop 2024-05-08 13:13:28 |
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The vacancy rate for high-street shops in Central came in for a bit of analytical preoccupation in the first quarter as diverse businesses, including luxury brands, sports-goods retailers and fitness centers moved into Hong Kong's premier financial district fueled a notable drop that offset a wave of restaurant closures. The 1.5-percentage-point drop to 7 percent stood out as the situation in other core retail areas - Causeway Bay, Tsim Sha Tsui and Mong Kok - remained unchanged or even worse, according to Cushman & Wakefield, worsened. That was bolstered by another real estate service company, CBRE, chalking up a drop in the district that it said was the largest in the vacancy rate. |
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4. UK usk price fell sharply 2024-05-10 17:33:31 |
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UK huk house prices fell at the sharpest pace in eight months after the cost of mortgages crept higher, one of the country's biggest lenders said, underscoring continued cost-of-living pressures on consumers ahead of a general election this year.
The figures from the Nationwide Building Society followed a scaling back of bets on Bank of England interest rate cuts this year, and that is likely to push up the cost of home loans in markets.
That's strained the ability of people to afford to buy a property and held back a recovery from last year's slump.ouse prices fell at the sharpest pace in eight months after the cost of mortgages crept higher, one of the country's biggest lenders said, underscoring continued cost-of-living pressures on consumers ahead of a general election this year. The figures from the Nationwide Building Society followed a scaling back of bets on Bank of England interest rate cuts this year, and that is likely to push up the cost of home loans in markets. That's strained the ability of people to afford to buy a property and held back a recovery from last year's slump. |
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