Enhance New Capital Investment Entrant scheme to boost luxury residential market
Enhancements in Hong Kong's New Capital Investment Entrant Scheme are expected to attract more high-net-worth individuals to the city, boosting luxury residential property market transactions.Under the updated measures, applicants now need to demonstrate a minimum net worth of $30m over the six months prior to their application, instead of the earlier requirement spanning two years.Additionally, investments made through family-owned investment holding vehicles (FIHVs) or a family-owned special purpose entity (FSPE) under a FIHV will now qualify towards meeting the scheme's investment criteria.“Despite a rate cut totalling 100 basis point for 2024, uncertainties persist with potential further cuts in 2025. Coupled with global economic uncertainties and cautious mortgage approvals, we anticipate residential property prices to remain stable in the first half of 2025 given the supply of first-hand residential units remains high, with over 100,000 units either completed or under construction," Kathy Lee, Head of Research and Retail Consultancy at Colliers Hong Kong said.
Hong Kong banks face rising risks amid prolonged property slump, Moody’s warns
Hong Kong banks were likely to be more selective in extending credit to developers amid a prolonged property slump that could pose a “major risk” to lenders, according to Moody’s Ratings.Banks’ property development and investment loans accounted for 16 per cent of their total lending as of June, the credit-rating agency said in a report on Wednesday.“Hong Kong banks have large exposures to commercial property and may face heightened asset risks,” Moody’s said. “Prominent Hong Kong developers, such as New World Development [NWD], have historically enjoyed strong banking relationships and lending was usually on an unsecured basis.”
SHKP wins Tung Chung site for $602m
Sun Hung Kai Properties (0016) has been awarded a rendered residential site in Tung Chung for HK$602 million, or around HK$1,500 per buildable square foot, in line with market expectations.The developer's deputy managing director Victor Lui Ting said he was "very pleased" with the acquisition and revealed that the total investment is estimated to be around HK$3.5 billion.He noted that the site enjoys expansive sea views and is in proximity to the MTR station.The Standard ChannelMore>>Area 106B in Tung Chung, the sole plot in the government's land sale program for the quarter, covers a site area of 10,648 square meters.It is expected to provide 745 units with a total floor area of 37,268 sq m when completed. The lot had previously failed to be sold when it was first up for tender in September 2023.Its market valuation falls somewhere between HK$500 million and HK$1 billion, or HK$1,250 to HK$2,500 per sq ft.The other three bidders for the site included Able Best, Sino Land (0083) and K Wah International (0173), the Lands Department said.SHKP is one of the few developers that are still active in land acquisition amid a sluggish property market. Home prices in the city slumped by 7.1 percent in their third consecutive year of decline.The developer won two government sites in Sha Tin last July and last month, respectively, each for around HK$600 million.Together with this site, it has spent a total of HK$1.83 billion in a span of seven months to add approximately 750,000 sq ft to its land bank, with an average cost of around HK$2,400 per sq ft.Property services firm Cushman & Wakefield (HK) said the successful tender will have a positive impact on the market and expects the price of flats to be built on the plot to range from HK$9,000 to HK$10,000 per sq ft.
Hong Kong’s ‘minibus king’ sells The Center offices at 34% loss in market slump
Hong Kong investors continue to offload property assets at discounts amid high interest rates, and consultants expect more financially stressed owners will be forced into the same position in coming months.The family of minibus tycoon Ma Ah-muk is selling the 45th and 27th floors of The Center, a 73-storey skyscraper in Hong Kong’s Central business district that was once the most expensive in the world. The floors have been broken down into 13 smaller units to be sold individually, according to Centaline Commercial, the sole agent. The units range from 1,842 sq ft to 9,565 sq ft. The owner will first offer eight units with an intended price starting from HK$21,800 (US$2,800) per square foot – about 34 per cent below the HK$33,000 Ma paid in 2018.
Jade Beach Villa at Chung Hom Kok on sale for $1.5b
The property comprises 12 apartments and 18 houses.JLL announced the sale of Jade Beach Villa at 3-7 Horizon Drive at Chung Hom Kok for $1.5b.Completed in 1977, the property comprises 12 apartments and 18 houses on a site area of approximately 102,000 sq ft.Currently, eight out of 12 apartments and 14 out of 18 houses are tenanted, whilst four apartments and four houses are vacant.It has a maximum permissible gross floor area (gfa) of approximately 57,375 sq ft and a total saleable area of approximately 55,914 sq ft.Join Hong Kong Business community Zoned “Residential R (C)”, the property can be redeveloped into a three-storey detached house with one-storey open carport.The property is situated near the Dairy Farm Chung Hom Kok Shopping Mall, MTR Ocean Park Station, Happy Valley, Causeway Bay, and the Central Business District.
Soon-to-be $238m luxury home at Stanley Link Road up for sale
A coastal property at 30 Stanley Link Road, which will be developed into a $238m luxury residential home, is up for sale.The site is near Stanley Plaza and top international schools, including Hong Kong International School and International Montessori School.The would-be 4,359-square-foot three-level complex sits across two plots and has over 3,269 square feet (sq. ft.) of internal living space and a sea-facing swimming pool.It also has a spacious terrace of 2,420 sq. ft., a 357 sq. ft. roof terrace, and a 3,269 sq. ft. gross floor area with a five-vehicle car park.
Hong Kong developer NWD to launch second State Pavilia offering after weekend sell-out
New World Development (NWD) is launching a second offering of flats at its State Pavilia project in North Point on Wednesday after selling all the units it offered at the weekend. The developer on Sunday said it would put an additional 88 units up for sale “in response to the market’s needs”. On Saturday, NWD sold all 168 units that were offered in the initial phase of the firm’s redevelopment project on the site of the former State Theatre. NWD said the weekend sale attracted more than 7,800 orders and was oversubscribed 45 times. The latest price list was about 2.4 per cent higher than the previous one, with an average discounted price per square foot of HK$19,747.
Mainland Chinese demand to help drive up home prices in 2025
Hong Kong’s home prices are expected to rise by 3% whilst transactions will rise by 6% in 2025, partly due to demand from mainland Chinese, according to a sector note by securities firm CGS International.Authorities’ relaxation of all tightening measures on residential transactions, and positive cost of carry suggest that it is better to purchase than to rent, will help drive up prices and transactions.CGS International also expects strong demand from mainland Chinese who live in Hong Kong.“We estimate their total housing demand in the next 5-10 years could be [five times] Hong Kong’s annual primary sales volumes in 2024F,” said CGS International analysts Raymond Cheng, Will Chu, and Steven Mak in a sector note published on 30 December 2024.Join Hong Kong Business community Cheng, Chu, and Mak expect primary home sales to rise by 38% YoY to 15,600+ units sold in 2024F and further increase by 6% YoY to 16,600 units sold in 2025F.The recovery of retail sales will help drum up activity in the retail property market.
