Property agents in Hong Kong hit hard

引用: http://www.channelnewsasia.com

HONG KONG: Thousands took to the streets earlier in Hong Kong this month to protest against the government's recent Hong Kong Property tax hikes.

Made up mainly of Hong Kong Property gents and disgruntled home-buyers, they are angry at the government for doubling the stamp duty on Hong Kong Property transactions since February to around 5.5 per cent.

Protest organiser Raymond Ho argued the cooling measures are hitting the innocent.

Ho said: "Some middle-class have a dream to live in one apartment and one for rent. They can handle their retirement if they have one flat for living and one for rent, but those stamp duty policies just freeze the volume of Hong Kong Property market and at the same time, freeze the social mobility of Hong Kong people."

Latest official data shows in the month of June, transactions in the city have fallen by 12.5 per cent, with fewer than 3,500 transactions completed. Total value of sales is down 22 per cent.

Hong Kong Property agent, Angus Or, has witnessed an even more drastic drop in transactions in the new town of Tseung Kwan O, built on reclaimed land along the bay, northeast of Hong Kong island.

His commission income has dropped by 70 per cent since the new levies were introduced.

"Usually in this area, there are about 600-700 transactions per month for buying and selling in total. Nowadays, there are only around 70 transactions for buying and selling alone," said Or.

Mass market estates, like Tseung Kwan O are in demand, because of tight supply in the market. Many home owners are now pulling back from selling their units.

Three years ago, a 684-square-foot apartment in the area cost around US$774,000. Today, the owner is asking for just over US$1 million.

"There has been no drop in prices. Most of the owners in this area have paid off their mortgages. When they bought the flat, it is only around HK$2 million and after 10 years, they have paid off their mortgages. They don't have a hurry to sell," explained Or.

Buyers, in the meantime, are in no hurry to commit either.

They anticipate prices to fall further down the road. The government has committed to significantly increase housing supply in the next three to five years. By then, the US Federal Reserve would have raised its benchmark interest rates. This means mortgage rates in Hong Kong will follow suit as the Hong Kong dollar is pegged to the US dollar.

Meantime, the pickings continue to be slim for agents like Angus.

And if the situation persists, industry insiders predict that up to two-thirds of Hong Kong Property  gents in the territory could be out of work.

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CORRECTED-China shares slip on growth concerns, Hong Kong weaker too

引用: http://in.reuters.com/

HONG KONG, July 16 (Reuters) - China shares slid on Tuesday, weighing on Hong Kong as both markets traded narrowly, with financial and Hong Kong Property stocks dampened by an official news report saying quarterly or annual growth of below 7 percent was acceptable.

By midday, the CSI300 of the leading Shanghai and Shenzhen A-share listings was down 0.6 percent, while the Shanghai Composite Index shed 0.7 percent. Both stayed in the same 60-point range for a third session.

The Hang Seng Index was down 0.1 percent at 21,287.4, while the China Enterprises Index of the top Chinese listings in Hong Kong slipped 0.2 percent as turnover stayed anemic.

"If it's true that 7 percent is the new base economic growth case, then it would greatly diminish chances that Beijing will even move to support the economy and this is a negative for the market," said Cao Xuefeng, a Chengdu-based analyst with Huaxi Securities.

The official China Securities Journal reported on Tuesday in a front page editorial that quarterly or annual economic growth rates of below 7 percent would not affect China's long-term goal of structural adjustment.

This comes a day after data showed the world's second-largest economy grew 7.5 percent in the second quarter, a figure broadly in line with China's official annual growth target.

The mainland's press also reported that the economy was likely to dominate the State Council's regular Wednesday meeting. Traders said there was some speculation that China's cabinet could unveil some policy announcements after that.

China Minsheng Bank fell 1.3 percent in Shanghai and 0.3 percent in Hong Kong. The country's second-largest lender China Construction Bank (CCB) shed 0.7 percent in Hong Kong.

Chinese Hong Kong Property and construction-related sectors were hurt by more reports in the mainland press about the possibility of the eastern city of Hangzhou starting a Hong Kong Property tax trial, after Shanghai and Chongqing.

China Vanke, the country's largest Hong Kong Property developer by sales, tumbled 2.2 percent in Shenzhen. Poly Real Estate fell 2.6 percent in Shanghai, leading the Shanghai Hong Kong Property sub-index down 2.2 percent.

Vanke Properties Overseas, due to report interim earnings on Friday, fell 3 percent in Hong Kong.

China Pacific Insurance Co Ltd far outperformed sector rivals on the day, jumping 2 percent in Hong Kong after posting favorable monthly premium growth data. Ping An Insurance slipped 0.5 percent, while China Life Insurance edged up 0.13percent.

NetDragon dived 17.7 percent in Hong Kong after Baidu Inc, China's top search engine, said it plans to acquire app store 91 Wireless from NetDragon for $1.9 billion to strengthen its foothold in the country's highly competitive mobile computing sector. (Editing by Jacqueline Wong)

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China shares weigh on Hong Kong Property

引用: http://uk.reuters.com

HONG KONG, July 18 (Reuters) - China shares underperformed Asia in mid-morning trade on Thursday, weighing on Hong Kong markets, with the financial and Hong Kong Property sectors hit by concerns over the availability of financing for real estate developers.

The pace of China's monthly home price increase slowed for a third straight month in June though the year-on-year gain was the strongest this year, underlining the challenges facing Beijing's near four-year-old campaign to tame housing inflation.

By 0313 GMT, the CSI300 of the leading Shanghai and Shenzhen A-share listings was down 0.9 percent, while the Shanghai Composite Index slid 0.6 percent. Both broke below chart support that held for a week, pointing to more losses in the near term.

The Hang Seng Index slipped 0.1 percent, with the China Enterprises Index of the top Chinese listings in Hong Kong also flat. Bourse turnover in Hong Kong stayed weak.

"It's not just Hong Kong Property  specific anymore," said Lee Wee Liat, BNP Paribas head of Asia Hong Kong Property  "Fears are growing that the liquidity shock a few weeks ago may be starting to trickle into the sector."

The official China Securities Journal reported on Thursday that financing requirements for listed Hong Kong Property evelopers will be gradually liberalised and loosened, subject to conditions. This follows a similar Xinhua news report on Wednesday.

BNP's Lee added that mainland media reports alleging inappropriate corporate behavior by state-owned conglomerates have raised concerns how that may potentially affect state-owned real estate developers.

Shares of China Vanke, the country's largest real estate developer by sales, declined 1.6 percent in Shenzhen. In Hong Kong, China Overseas Land and China Resources Land each fell nearly 2 percent.

Mid-sized lenders China Minsheng Bank and China Merchants Bank skidded 2.9 and 1.8 percent, respectively in Shanghai. Their Hong Kong-listed shares also suffered losses on the day.

Cement producers China Shanshui and BBMG Corp tanked after they warned of declining profits late on Wednesday, pointing to a likely divergence at their upcoming interim earnings reports due in August. Three other cement producers had issued positive profit alerts last week.

On Thursday, Shanshui slumped nearly 10 percent, nearing its June 25 low, which was also its lowest since April 2009. BBMG lost 1.9 percent, while sector giant Anhui Conch Cement slid 2.1 percent in Hong Kong.

But there were gains for China Resources Power, rising 2.3 percent after the company said on its website that it considers recent media reports alleging corruption in the company to be defamatory and that it had adversely affected the reputation of its leadership.

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Hong Kong Property agents hit as policies to cool property prices dent deal volume

引用:http://www.scmp.com/

Hong Kong real estate agents are united. On Sunday morning, agents from big and small firms will march to government headquarters at Tamar in Admiralty to protest against measures designed to cool the Hong Kong  property market which, they say, have affected their livelihoods.

The protest is supported by industry leaders Centaline Hong Kong  property gency and Midland Realty as well as associations representing smaller agencies. The industry is calling on the government to scrap the measures.

"The entire industry, both big and small agents, is suffering," said Centaline founder Shih Wing-ching.

Shih blames a decline in transaction volumes on measures introduced by Chief Executive Leung Chun-ying after he took office a year ago. The policies aim to curb soaring residential and non-residential Hong Kong  propertyprices.

Centaline Hong Kong  property gency said its agents recorded 11 secondary market transactions in the top 10 estates over the June 29-July 1 long weekend, down 31 per cent from the previous two-day weekend.

About 200 primary units have been sold in the seven new projects put on sale since the new Residential Properties (First-hand Sales) Ordinance came into effect just over two months ago.

"No one buys. No one rents. The market is dead," said Lai Chau-lin, in her early 60s, who works for a small Hong Kong  propertyagency, Pak Shing Real Estate.

"I earned HK$1,100 in commission in February. That was my entire salary for the month and the lowest monthly income I've earned in the past 10 years."

Lai brokered one or two deals a month from March to June, for leases on sub-divided and regular units, earning between HK$3,000 and HK$5,000 a month after sharing the commissions with her boss.

"When the market was good, we had no time to go out for lunch because clients kept calling to look for flats," she said. "Today, I do not dare to go out for lunch because I have no money."

Sales of second-hand homes rose 23.9 per cent month on month to 3,314 units in June, compared with 2,674 in May, according to Centaline. The figures reflect the market conditions in May because of a time lag of about four weeks between buying a Hong Kong  property and registering the sale. In April, there were 2,171 deals for second-hand homes.



'The number once hit as high as 9,000 in March last year," said Lai.

The implementation of the ordinance on April 29 affected the market.

New rules required greater transparency in Hong Kong  property sales procedures, with developers having to publish sales brochures seven days before the official sale period and price lists three days before the launch, to give potential buyers time to study the details of offerings.

Agents said developers needed time to get used to the new rules. They said they expected sales to continue to be slow in the coming months. Sales of offices, shops and industrial properties have also declined.

Total Hong Kong  property  transactions, including residences, offices, shops and car parks, fell 12.7 per cent month on month in June to 4,616, according to Land Registry figures. The year-on-year decline was 45 per cent.

There were 8,302 transactions in January, 9,643 in February and 6,841 in March.

The fall in sales follows Leung's pledge to make flats more affordable for Hong Kong residents.

Hong Kong's housing prices have surged 120 per cent from 2008 and 34 per cent from their peak in 1997, Financial Secretary John Tsang Chun-wah said on February 22, when he announced the latest round of Hong Kong  property cooling measures.

Hong Kong is one of the least affordable Hong Kong  property markets in the world, with an average home costing the equivalent of 12.6 times an average annual income, according to an International Monetary Fund report in January.

On February 22, Leung's administration made good on its pledge and Tsang announced the doubling of stamp duty on residential and non-residential transactions worth more than HK$2 million. The stamp duty did not apply to those buying homes for the first time.

In a package of measures announced the same month, the Hong Kong Monetary Authority, the city's de facto central bank, announced its sixth round of measures to rein in housing prices since 2009, requiring banks to test borrowers' ability to repay mortgages on the assumption that interest rates would rise by 3 percentage points, instead of 2 percentage points previously.

It also lowered the maximum allowable loan-to-value ratio for non-residential Hong Kong  property to 40 per cent from 50 per cent for locals. It also capped mortgages for car parks at 40 per cent of their value, down from 50 per cent, and reduced their repayment terms to 15 years from 20 years.

The steps were the first taken by the HKMA that dealt with non-residential loans. In October, a 15 per cent levy on non-local and corporate Hong Kong  property buyers, known as buyer's stamp duty, was introduced.

That same month, the government raised a special stamp duty on sellers, introduced in 2010 to curb speculation, by 5 percentage points, and extended its effect on resales from two to three years. The rates now range from 10 to 20 per cent.

Major domestic agencies and international Hong Kong  property consultants are diversifying their businesses.

Hong Kong  property consultant Savills, which until now had focused on brokering big-ticket Hong Kong  property transactions and introducing overseas properties to Hong Kong buyers, is now expanding its sales force as it moves to enter the mass housing market.

"Small players will be forced out of the market," said Raymond Lee, chief executive of Savills, Greater China. "There are 40,000 real estate agents. One third will be forced out of the market."

Not all industry players agree the measures should be axed.

"The cooling measures are not targeted at agents, but the red-hot Hong Kong  property market," said Ringo Lam Chun-chiu, valuation director at AG Wilkinson & Associates. "In the face of rising Hong Kong  property prices, it is good to see the government impose measures to cool the market."

Professor Chau Kwong-wing, from the department of real estate and construction at the University of Hong Kong, said the decline in transaction volumes had affected the market.

"Hong Kong  property agents are being hit hardest, followed by related industries such as solicitors, surveyors and those who refurbish flats," he said. "Some will be forced out."

Chau said the weakening of these sectors would not result in a slowdown in Hong Kong's economy.

"Instead, Hong Kong's economy will be hit by external factors such as the global economy and the mainland's economic growth."

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Hong Kong developers' tepid bids for site reveal gloomy outlook for prices

The lacklustre bidding for a Tseung Kwan O residential site on Tuesday shows that developers believe Hong Kong property prices will come under pressure over the next few years, analysts say.

Chinachem's winning tender of HK$3 billion translates into an accommodation value of HK$3,653 per square foot, the lowest in the area in more than three years.

About 4,000 flats in Tseung Kwan O are available for sale, Centaline Hong Kong propertyAgency said.

Ken Lee Yuk-cheung, a sales director at the firm, said about 100 flat owners cut their asking price by 1 to 2 per cent after the tender result was released and that around 20 cut their asking price by more than 2 per cent.

"But the news was not so daunting as to make a majority of flat owners cut their asking prices," he said.

Eric Yuen Chi-fung, the head of research at Guoco Capital, said the bidding reflected developers' expectations for Hong Kong property rices three to four years down the road. "They believe Hong Kong property rices have downward potential, and so that's why their offers were conservative," Yuen said.

"Chinachem is a private company and is under no pressure to publicly report its profit. Its offer was the highest of the developers. The others must hold a more negative outlook."

Yuen said he believed developers were pessimistic because interest rates may rise as the US Federal Reserve moves closer to reducing its stimulus programme.

"Development costs will increase if interest rates rise," he said. "As construction costs continue to rise and housing supply increases significantly, developers have turned conservative when acquiring land."

Yuen said he expected Hong Kong property rices to drop, adding that how far they fall depended on the performance of financial markets. "It seems the government hopes Hong Kong propertyprices will fall 20 per cent," he added.

Charles Chan Chiu-kwok, the managing director of consultancy Savills, said he expected prices to drop 10 per cent to 15 per cent in the second half.

"Hong Kong property prices face downward pressure, as Hong Kong property  ales have stayed at a low level," he said. "Flat owners will have to cut their asking prices to lure buyers, and prices of new homes will be affected by an increase in supply."

Lee Wee Liat, the head of Hong Kong property  esearch at BNP Paribas Securities, said mass residential prices would be flat or rise by as much as 5 per cent.

"Developers submitted conservative offers for the Tseung Kwan O site because there will be plenty of new supply in the area," Lee said. "Demand for mass residential remains strong, and rental yields are still higher than mortgage rates, but the outlook for high-end residential flats is not positive."

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Hong Kong, China anxious on rising property interest rates

引用: http://www.globalpropertyguide.com

Hong Kong Property is yet to give up on its property cooling measure, but interest rates may increase in anticipation of the U.S. Federal Bureau’s next move, Finance Secretary John Tsang Chun-wah said.

The Federal Reserve’s hint of easing the quantitative easing by year-end might see the sudden exit of hot money from Hong Kong Property and other Asian markets, Mr. Tsang explains at the sidelines of an event hosted by the Hong Kong Property Association of Banks.

An increase in rates is seen affecting the property sector, Mr. Tsang adds, though this might only happen when the U.S. starts raising interest rates, which nowadays remained close to zero.

Mr. Tsang notes that it is still hard to predict how the eventual increase in rates will erode the island-city’s property prices, but has assured that there is adequate liquidity based on the cost of holding a property and the low mortgage lending rate are in place.

He, however, pointed out that asset bubbles are still imminent and the government is prepared to take action if needed.

The 14-day interbank rate in the mainland rose on record last week at 8.56% due to mounting liquidity concerns.

Mr. Tsang explains that the 14-day interbank rate is crucial for a bank in order to meet the end-of-quarter book balancing. The end of quarter reporting is due by end of this week.

The mainland banks’ interest rates could be a cause of worry for Hong Kong Property banks, he tells South China Morning Post.

Nonetheless, Standard Chartered Bank’s CEO, Benjamin Hung Pi-cheng, predicts Hong Kong Property interest rates will remain flat for the entire year adding that the island-city’s rates are pegged to the US rates.

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Sydney’s Skye by Crown lures Hong Kong and Singapore buyers

Sydney’s Skye by Crown lures Hong Kong and Singapore buyers

引用: http://www.property-report.com
Leading Australian Hong Kong Property firm Crown Group’s latest Sydney development attracted more than US$20 million in apartment sales in Hong Kong and Singapore during the launch earlier this month.

“It is encouraging to see such a strong response to Crown Group’s apartments from buyers in Singapore and Hong Kong,” said Crown Group CEO Iwan Sunito. ”They want to buy in areas that are strengthening, areas that are underpinned by employment, transport, shopping and education, with genuine faith in the product they’re buying into.”

Crown Group launched Skye by Crown over two days at the Mandarin Oriental in Hong Kong and Regent Hotel in Singapore, in addition to a local event held in  Sydney. The sales from all three launches totaled more than US$100 million.

Buyers in Hong Kong and Singapore were given exclusive access to a selection of the apartments.

Upon completion, the complex will comprise 232 apartments, set over 20-storeys. The building will feature a restaurant and retail precinct at ground level, as well as an infinity edge pool.

Designed by Japanese Australian architect Koichi Takada, the designs include glass facades, with balconies, and wintergreens, and a sculpturally inspired bronze coloured metal veil.

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Hong Kong Chief Executive Pledges Property Curbs to Stay

引用: http://www.bloomberg.com

Hong Kong, the world’s most expensive home market, will not ease its real-estate curbs until there’s a steady supply of new properties as the government seeks to address concerns that it favors developers.
Earlier actions have brought down prices and rents, and the government can do more if needed, Chief Executive Leung Chun-ying, 58, said in an interview in New York. An index of Hong Kong property stocks fell to the lowest in nine months.


“There’s a voice out there in the Hong Kong community that the government should ease off,” the former Hong Kong property surveyor said yesterday. “This is not the time to relent.”

Hong Kong property transactions in Hong Kong have tapered off, hurting developers, since Leung introduced his toughest measures yet in February by doubling a sales tax and extending curbs to commercial real estate. As Leung completes his first year in office in July, he’s seeking to focus on the economy to bolster his popularity, which is near a record low.

“Leung has been trying to strengthen his performance in social and public policies to win him more public support,” said Dixon Sing, an associate professor of social science at the Hong Kong University of Science & Technology. “Failing to get Hong Kong property  rices under control will risk hurting Hong Kong’s competitiveness and Leung’s popularity.”

Home prices in the former British colony have more than doubled to a record since the start of 2009, spurring protests as developers booked rising profits. Leung came into office last July pledging to narrow a record wealth gap, address housing affordability and clean up the environment.


Transactions Drop
The Hang Seng Hong Kong property  ndex (HSP), which tracks nine of the biggest developers listed in the city, fell as much as 3.6 percent today to the lowest since September. It closed 0.5 percent lower, extending this year’s decline to 11 percent, compared with the 7.8 percent decline in the benchmark Hang Seng Index.

Leung in February doubled stamp duty taxes on all Hong Kong property  ransactions over HK$2 million, after imposing an extra tax on home purchases by companies and non-residents in October. Since 2010, the government has charged an extra tax of up to 20 percent of the value of homes on buyers who resell them within three years and raised the minimum down-payment on mortgages for homes costing more than HK$7 million.
Home transactions fell for a third consecutive month in May. They dropped to 3,286 in December, the lowest since November 2008. Prices have dropped 3 percent since a record high in March, according to an index compiled by Centaline Hong Kong property Agency Ltd.


Mainland Chinese
“We’re delivering results,” Leung said when asked about his performance. “We have made a very clear stance on the question of Hong Kong property  rices. For the first time in a very long time, the allegations that there is somehow collusion between Hong Kong and the developer industry have gone away.”

Leung’s support rating was 46.7 on a scale of 0 to 100, according to survey of 1,012 people conducted June 3-5 by the University of Hong Kong’s Public Opinion Program, down from 53.8 when he took office. He has been hurt by illegal building additions to his home and student protests against a plan to introduce national education classes that are seen as overly favorable to China’s Communist government.

The Hong Kong economy will continue to be bolstered by rising numbers of Chinese tourists, Leung said. The city had 48.6 million arrivals last year, of which more than 34.9 million were from China, according to the government. Total arrivals may gain 15 percent this year, Leung said.

Mainland Chinese accounted for 15 percent of all residential Hong Kong property  ales in Hong Kong in the first quarter, down from 31 percent over the previous three months, according to Centaline. The figure reached a record 51 percent in the third quarter of 2011.


Milk Powder
Leung said he’s aware of the rising tension Chinese visitors have brought to Hong Kong, as they swamp shops and buy up daily necessities and homes. The government will continue to ensure that residents come first, he said.

The chief executive has banned Chinese mothers from giving birth in Hong Kong, restricted purchases of milk powder by visitors and sold some land to be developed for resident-only housing.

Asked about the city’s 30-year-old currency peg to the U.S. dollar, Leung said it has served Hong Kong well and there’s no discussion of replacing it.

To expand the economy in the longer term, Leung said he wants to add to the services the city provides, cementing its place as China’s finance center. Hong Kong should look into shipping finance and insurance, for example, diversifying away from managing initial public listings and commercial banking, he said.

“We want to grow, we want to diversify,” Leung said. “We want to move up the food chain. China is fast becoming a major maritime and shipbuilding nation in the world. Is there a reason why we shouldn’t diversify?”

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Foreign chambers of commerce hit out at doubling of Hong Kong stamp duty

引用: http://www.scmp.com

Chambers of commerce that represent hundreds of foreign firms in Hong Kong are voicing unhappiness at the recent doubling of stamp duty on commercial Hong Kong Property purchases.

The government's February 22 tax increase on Hong Kong Property  sales exceeding HK$2 million was designed to rein in speculation. But foreign firms say they have been unfairly targeted by the move, which greatly raises their business costs in the city.

The top bracket - on sales of more than HK$20 million - rose to 8.5 per cent of Hong Kong Property value, from 4.25 per cent.

Because of the increase, Canadian insurer Manulife Financial had to pay HK$383 million instead of HK$191 million when it spent HK$4.5 billion to purchase the planned West Tower at One Bay East in Kwun Tong last month for its own use.

The Canadian Chamber of Commerce has written to the Legislative Council, urging the government to grant an exemption to long-term buyers of office space for their own use.

"[Chamber members] are purchasing the office space to try to fix their costs in an expensive city," said David Nesbitt, the chamber's executive director. "But they are unfairly punished. We have written a letter laying out our disagreement with long-term and normal purchasers [of commercial properties] being punished by the taxation, which isn't aimed at them."

Nesbitt said the chamber represented 180 companies operating in Hong Kong, from large organisations like Manulife to firms with a handful of employees.

"Some of our members are considering purchasing [commercial] Hong Kong Property or have already done so," he said.

The Australian Chamber of Commerce said it would also be expressing its concerns that the raised duty would discourage genuine users from buying commercial properties.

The American Chamber of Commerce is drafting its views on the issue, people familiar with the matter said. The British Chamber of Commerce is also said to be concerned.

The Canadian chamber's letter was sent to the Legislative Council's Bills Committee on Stamp Duty (Amendment) Bill 2013 last week, urging the government to consider the "unintended consequences" of the doubling of stamp duty for all buyers.

The chamber suggested the government consider the example of Singapore, which included an exemption from extra duty for non-residential properties held for more than three years.

A spokeswoman for the Australian chamber said its construction and finance committees would be responding with suggestions for exemptions.

"The negative flow-on effects include limited diversification of ownership as well as fewer choices for commercial tenants," she said.

The Australian chamber is the second-largest in Hong Kong, with almost 1,400 members representing about 500 companies.

A spokesman for the American chamber, the largest chamber, refused to comment. A member of the British chamber's real estate panel did not return calls. A member of the Legco's Bills Committee said a meeting would be held today to discuss the issue.

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Hong Kong property investors switch search to overseas markets

引用: http://www.scmp.com

Hong Kong property investors switch search to overseas markets

A growing number of Hong Kong property investors are shifting their investment focus offshore - prompting local brokers to widen their sales' lists in order to capture commissions on deals taking place overseas.

"There has definitely been a pick-up in buyer interest in overseas properties in recent months. Inquiries for international residential properties are up by 10 per cent since the government announced its latest control measures on the market in February," said Denis Ma On-ping, local director of the Greater Pearl River Delta Research at agency Jones Lang LaSalle.

In a bid to offset a reduction in commission incomes caused by the sharp fall in domestic home sales, property agency Centaline has begun to introduce overseas residential projects for sale in Hong Kong. It has held exhibitions to introduce projects in Vancouver and London to local buyers over the last two weeks.

David Hui, general manager for mainland and overseas' sales at the agency said some 30 flats at Island - a project in Croydon, in the south of London - had been reserved by local buyers; and another 13 flats were reserved in the Vancouver project, River Green.

"The response from local buyers was even better than we have seen for mainland projects," he said. Many local buyers were cash rich, said Hui, but put off from buying in the local property market by the cooling measures.

"The investment cost of buying a flat in our overseas projects is about a couple of million dollars only, and about 60 to 70 per cent of the buyers are first-time owners of properties in London or Canada."

Ma of Jones Lang LaSalle believes the increasing interest in overseas properties is because of the government's control measures and also a softening of the local property markets in general.

"The relative strengthening of the Hong Kong property  gainst currencies such as the British Pound and Japanese Yen have also drawn the interest of buyers and a pick-up in buying interest has also been supported by a greater number of projects being launched onto the market in cities such as London and New York and a greater emphasis among developers to target buyers from Asia," he said.

"We are starting to see more of these developers expressing interest in hosting sales events in Hong Kong."

Ma said the investors were looking at overseas residential properties priced at around HK$6 million.

"Aside from investment purposes, many of them often purchase properties for their children to use during their schooling years, especially tertiary education. As a result, most of these buyers tend to target properties in countries such as the United Kingdom and the United States, where schools are more prestigious or in cities where they, the parents, went to school themselves," he said.

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PRESS DIGEST - Hong Kong Property

引用: http://www.reuters.com/

May 13 (Reuters) - These are some of the leading stories in Hong Kong Property newspapers on Monday. Reuters has not verified these stories and does not vouch for their accuracy.

SOUTH CHINA MORNING POST

-- YG Entertainment, the record label and agency that represents South Korean pop sensation Psy, plans to expand into the China market by setting up a firm on the mainland this year, said YG Chief Operating Officer Simon Choi Sung-jun. ()

-- BlackRock, the world's largest fund company by assets, plans to launch more Hong Kong Property domiciled funds as part of a deeper push into Asia, said Mark McCombe, Blackrock's Asia-Pacific chairman, but he did not provide any timing. ()

-- The Lai Sun group of companies is touting a war chest of more than HK$18 billion ($2.32 billion) in credit and cash to speed up its land acquisition in Hong Kong Property and on the mainland. The group also plans to add one or two investment properties per year to enhance retail income. ()

Hong Kong Property ECONOMIC JOURNAL

-- Chinese developer Yuexiu Property Co Ltd said it had sold its interest in a commercial building in Guangzhou to its parent company Yuexiu Enterprises for 830 million yuan ($135.14 million).

Hong Kong Property ECONOMIC TIMES

-- Shenzhen's Qianhai may start selling its first batch of land in the next few weeks. Hong Kong Property developer, including Cheung Kong (Holdings) Ltd, Sun Hung Kai Properties Ltd and New World Development Co Ltd have been contacted by listed companies and governmental organizations to discuss investment projects in Qianhai, according to market sources.

THE STANDARD

-- The Prime Minister of the State of Qatar and Singapore's sovereign wealth fund Government of Singapore Investment Corp and Convoy Financial Services Holdings have subscribed to China Galaxy Securities Co Ltd's shares, according to market sources. The firm is seeking to raise up to HK$10.6 billion in its initial public offering. ()

MING PAO DAILY NEWS

-- British insurance group Standard Life plans to set up a headquarter in Hong Kong Property as to expand into Asia and emerged markets, said Roy Halliday, Hong Kong Property chief executive of Standard Life (Asia) Ltd.

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Hong Kong property sales plunge 60% -- with prices following

Hong Kong property sales plunge 60% -- with prices following

引用: http://edition.cnn.com/

Hong Kong (CNN) -- The volume of Hong Kong property sales fell 60% compared with last year in a sign that recent government policies are cooling one of the world's most expensive real estate markets.

The Hong Kong Lands Registry recorded about 4,400 sale and purchase agreements in April with a valuation of $4 billion -- a 48% drop compared with the previous year.

"I'm not surprised," says Buggle Lau, chief analyst for strategic development and research at Midland Realty. "This is largely due to the measures implemented by the government. Residential Hong Kong property ransactions -- primary and secondary -- dropped significantly. Non-residential transactions also dropped -- industrial spaces, car parks, commercial spaces."

The slowdown in Hong Kong's Hong Kong property ales was expected, echoes Simon Lo, executive director of research and advisory at Colliers International in Hong Kong.
 Retail rental space rising in Hong Kong The $640,000 parking space Hong Kong punctures Hong Kong property bubble
"Most homeowners find they don't have a very strong reason to sell," he says. "They can wait for a couple of years" because of the government's Hong Kong propertypolicies.

On February 22, the city announced a doubling of the existing stamp duty, or DSD, to 8.5% to target investors who want to buy a second Hong Kong propertyto lease. From April 2010, that rate had been set at 4.25%.

In October 2012, to target short-term investors seeking to flip a house for profit, Hong Kong extended the existing special stamp duty, or SSD, on Hong Kong property esales from two to three years. If the owner sold the Hong Kong property ithin six months of purchase, a 20% duty would apply -- between one and three years, a 10% levy would apply.

Also in October, Hong Kong enacted a 15% buyer's stamp duty, or BSD, against home purchases by foreigners.
"Altogether, we're talking about an additional 40-plus percent increase in costs," says Lo. "So you can imagine if you're the buyer then you're just going to hold on and wait."

Hong Kong's layers of levies have also stifled interest from mainland Chinese buyers -- with the 15% tax for foreigners widely interpreted as an attempt to stop them.

"Two years ago, 40% to 50% of all home transactions in Hong Kong were by mainlanders," adds Lo. "Now most buyers are local and most mainlanders aren't making any moves."

In Hong Kong's super luxury market, defined around $13 million and above by Colliers, "mainland buyers have all dried up" says Lo. Regular luxury homes, defined at around $2.5 million and above, can often be found in Hong Kong's prime districts of the Mid-Levels and the Peak.

"Two years ago, we would normally have ten to 15 luxury home sales every week. Now it's less than five," Lo says.

Hong Kong property has notoriously been some of the most expensive in the world for years. As recently as spring 2012, Savills found Hong Kong as the most expensive in a company survey, outranking Singapore, London, Tokyo and Paris. Hong Kong propertyprices soared in the special administrative region 50% between 2010 and 2012.

Just last year, Hong Kong's priciest apartment -- the Frank Gehry-designed Opus -- sold for $58 million making it one of the most expensive residential properties in the world.

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Hong Kong Property has the highest home prices among major global

Hong Kong Property has the highest home prices among major global 

cities, including London, New York, and Tokyo, according to a report by global Hong Kong property  onsultancy Savills, and one of the big questions in global finance these days is predicting when the Hong Kong property bubble will burst.
Consensus is growing that the market is getting ready for some kind of setback, though opinions differ on how serious.
There are elements in Hong Kong’s situation that are all too familiar in Ireland. Since returning to China in 1997, Hong Kong’s economy has become irrevocably intertwined with China, and it needs Chinese trade flows and tourists to keep it simmering.
With the economy expected to weaken over the next couple of years north of the border, Hong Kong growth could come under pressure.
But the link to the US economy via the currency board peg means it will possibly have to deal with stronger growth Stateside next year, and a probable rise in interest rates, while mainland China’s economy stutters.
“As we see China and Hong Kong growth slowing, and US growth on the way back up, Hong Kong has a problem. Interest rates rising in the US would come at exactly the wrong time for Hong Kong,” said Freya Beamish, an economist at Lombard Street Research who covers China.

Bubble will bust
This scenario could play out negatively on the Hong Kong property  arket. With its robust links to the world’s biggest and second biggest economies, Hong Kong was been awash with liquidity as the Fed slashed interest rates to counter the global downturn and began quantative easing.
“At this stage, the Hong Kong dollar along with the renmimbi was still substantially undervalued against the dollar,” said Ms Beamish.
“ Having held onto the peg, even while China allowed some nominal appreciation, all of Hong Kong’s currency
adjustment had to take place through prices.”
So is it possible that US growth rising as Hong Kong and Chinese growth heads the other direction could, in fact, help the Hong Kong economy because it means the bubble will burst, and the Hong Kong economy can be rebuilt from a firmer base?
“If they keep the peg in any case, we will see the same problem again. They seem addicted to the peg, the stability of it. A run-up in Hong Kong property  prices is not my definition of stability,” said Ms Beamish.
The scenario is similar to what happened in Ireland and other countries during the financial crisis, where countries built up large Hong Kong property  ubbles on the back of low euro zone interest rates that were appropriate for countries like Germany, but not for those less solid economies on the periphery.
Raymond Lee, chief executive of Savills, described the Hong Kong property  market as being like a “patient getting early stage cancer.

However, our government gives it medicine that is designated for final stage cancer patients . . . the high dosage kills both good cells and cancer cells,” said Mr Lee.

Tighter risk rules
Prices show no major signs of falling despite a housing shortage, low mortgage costs, and a buying spree by mainland Chinese. Repeated attempts by the government to curb gains have failed to impact on house prices.
But most of the smart money is now on prices falling in the next two years. Prices could fall as much as 20 per cent over that period, according to Deutsche Bank, after lenders last month raised home-loan rates by 25 basis points in response to tighter risk rules.
Hong Kong chief executive Leung Chun-ying has imposed extra Hong Kong property transactions taxes, raised mortgage down-payment requirements, and accelerated the pace of government land sale since taking office in July.
What is effectively a three-decade-old marriage is indeed hard to pull asunder, but calls for changes in Hong Kong’s currency peg system are growing.
Even from big names such as Joseph Yam, who was chief executive of the Hong Kong Monetary Authority until October 2009, and who last year made a high-profile call for the link to the dollar to be reviewed.

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Hong Kong shares may start higher, headed for 2nd weekly gain

引用: http://uk.reuters.com

U.S. stocks closed about 1 percent higher on Thursday, led by tech shares, after weekly jobless claims figures pointed to improving labor market conditions a day before the closely watched monthly payroll report.

FACTORS TO WATCH:

* CNOOC printed $4 billion from a four-part bond making it the biggest conventional G3 offshore primary market issue in Asia since Hutchison Whampoa printed a $5 billion piece back in 2003.

* Commodities trader Glencore has turned to its own internal talent for the team that will run trader and miner Glencore Xstrata after the sector's biggest takeover to date, according to a source familiar with the company.

* China Railway Construction Corporation plans to issue Regulation S notes through its wholly-owned subsidiary CRCC Yuxiang Limited, China Railway said in a statement to the Hong Kong property exchange on Thursday.

* Hong Kong property developer New World Development plans to spin off and list three of its hotel properties through a trust called NW Hotel Investments in a initial public offering in Hong Kong property.

* Sinopec Kantons Holdings, a logistics and trading unit of state-owned Sinopec, plans to raise up to $353 million in a stock offering, according to a term sheet of the deal seen by Reuters on Thursday.

* China International Marine Containers (Group) Co Ltd (CIMC) said Pteris Global Ltd would buy a 100 percent stake in Shenzhen CIMC-TianDa Airport Support Ltd from the company and Shenzhen TGM Ltd in a deal to be settled by issue of new Pteris shares. CIMC's stake in Pteris will be increased to 48.6 percent after the deal from 14.99 percent, and TGM will hold 18.3 percent.

* Sincere Watch (Hong Kong property) Ltd said it expected its revenue and net profit for the year ended in March 2013 to fall from the year-ago period due to slowdown in the luxury retail markets for fine watches.

* Guangzhou R&F Properties Co Ltd said its contracted sales for April amounted to 3.7 billion yuan, an increase of 28.5 percent from a year ago.(Reporting by Clement Tan and Donny Kwok; Editing by Shri Navaratnam)

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Hong Kong shares close at highest in a month, property sinks China

Hong Kong shares closed at their highest in about a month on Thursday, spurred by recovering commodity prices and positive quarterly earnings from China Minsheng Bank, the country’s seventh-largest lender.

But a weak property sector dragged mainland Chinese markets to a third loss in four sessions. The CSI300 of the leading Shanghai and Shenzhen A-share listings slid 1.1 per cent. The Shanghai Composite Index shed 0.9 per cent.

Minsheng’s first quarter earnings were pretty solid, but much of its gains ... today were down to short coveringJackson Wong, Tanrich SecuritiesShort selling interest in Minsheng Bank’s H-share listing averaged 26 per cent in the first three days of the week, way above the 9.8 per cent average for the broader Hong Kong market.

On Thursday, Minsheng’s Hong Kong shares jumped 4.8 per cent to its highest since March 28 after China’s seventh-largest listed bank posted a 20 per cent rise in first quarter net profit from a year earlier.

But its Shanghai listing fell 2 per cent, tracking losses in the Chinese banking sector on the mainland after regulators ordered banks to report suspicious or irregular fixed-income transactions as part of a clampdown on the country’s vast interbank market.

The People’s Bank of China, which regulates the 24.4 trillion yuan (HK$30.38 trillion) interbank bond market, told commercial banks at a closed-door meeting on Wednesday that it was preparing tougher regulation to deal with substitute holdings.

Chinese property developers listed in the mainland were among the biggest index drags after the China Business News reported that the banking regulator has instructed lenders to stop extending loans to developers guilty of “malpractices”.

This came after data from the central bank showed China’s outstanding real estate loans in the first quarter rose 16.4 percent from the same period a year ago, even as overall industrial lending slowed.

Poly Real Estate tumbled 3.3 per cent in Shanghai, while China Vanke skidded 2.8 per cent in Shenzhen.

Commodities-related stocks were broadly higher as gold and copper prices rose to their highest in a week following a recent plunge in the physical markets. Zijin Mining, China’s biggest gold miner, jumped 4.9 per cent in Hong Kong in its best day since November.

Jiangxi Copper spiked 4.4 per cent in Hong Kong and a more modest 0.6 per cent in Shanghai, also helped by an upgrade by UBS from “hold” to “buy” with analysts believing its share price after the recent selloff, now represents an attractive risk-reward profile.

First quarter earnings were in also in focus, as Haitong Securities climbed 1.9 per cent in Hong Kong and 0.5 per cent in Shanghai after posting favourable results.

Bank of China, the first of the “Big Four” Chinese banks to post quarterly earnings later in the day along with a clutch of bellwether Chinese companies, inched up 0.6 per cent in Hong Kong.

China Unicom, the country’s second-largest mobile provider, slipped 0.2 per cent ahead of its first quarter earnings. After markets closed, Unicom said quarterly net profit jumped 90 per cent from a year earlier.

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Hong Kong Property Corporation chief hints at price rises in risky property market

引用: http://www.scmp.com

Homebuyers may have to pay more for mortgage insurance because the leading provider, the Hong Kong Mortgage Corporation, is looking to offset its risk in guaranteeing their loans in a risky Hong Kong Property
 market where prices remain at near-record highs.

Its chief executive, Raymond Li Ling-cheung, did not rule out yesterday the possibility of price increases in its mortgage insurance programme.

The government-owned firm has previously revised its programme to manage exposure to volatility in the market, he said.

"I see the risk is still at a high level, and we are more concerned about risk exposure than the volume of our business," Li said at a news conference to present the corporation's results for last year.

There had been a slight improvement in Hong Kong Property arket risk after the government introduced fresh cooling measures in February, but he remained cautious in view of the high prices.

Hong Kong Property prices have increased far more than people's incomes in recent years, making homes less affordable to most.

Now that Bank of China (Hong Kong) and Hang Seng Bank have launched fixed-rate mortgage plans, Li said the corporation would promote its fixed-rate mortgage plan as well, but he said the firm would not compete on price.

The corporation's net profit fell 10.4 per cent last year on the previous year to HK$1.13 billion as its two key businesses shrank. New loans drawn under the mortgage insurance programme fell 16.3 per cent to HK$22 billion.

Purchases of income-generating loan assets fell 91 per cent to HK$865 million as banks awash in liquidity felt less need to sell them to the firm to raise cash.

Li said he expected purchases of loan assets to stay low while easy liquidity prevailed. The firm bought just HK$46 million of loan assets in the first quarter.

The two key businesses were shrinking because of the economic cycle, Li said, but the firm's policy initiatives businesses were growing. These are a reverse mortgage scheme, a microfinance programme and a financing guarantee scheme for small and medium-sized enterprises.

Li said cash flow from these businesses has enabled the firm to pay a higher dividend to the government - a total of HK$750 million, more than double the HK$350 million for 2011.

Only the corporation had the capital strength and responsibility to introduce the "not profitable" policy initiatives business for the government, Li said.

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New Hong Kong flat supply

引用: http://www.scmp.com/

New Hong Kong Property supply 

New flat supply in the city is projected to climb to an eight-year high next year, easing the upward pressure on home prices.

Preliminary figures from the Rating and Valuation Department's "Hong Kong Property Review 2013" report shows that 15,820 new flats will go on the market next year, 16.8 per cent more than this year's expected total of 13,550 units.

"The projection for completion of new flats next year will be the highest since 2006," said Patrick Chow Moon-kit, head of research at Ricacorp Properties.

In 2006, 16,579 new flats went on the market.

Midland Realty chief analyst Buggle Lau Ka-fai said up to 16,000 new flats could go on the market this year, up 42.85 per cent from last year's 11,200.

According to the government's report, nearly 83 per cent of completed flats will be in the Hong Kong Property this year, with Tseung Kwan O and Yuen Long each providing a quarter of the fresh supply.

With competition from the primary market, Chow said  the Hong Kong Property  rise in prices in the secondary residential market would also ease.

The Centa-City Leading Index, which tracks sales at 100 major housing estates in the city, fell for two consecutive weeks to March 31 to 123.01, down 0.52 per cent, after reaching a record 123.66 for the week to March 17.

Overall home sales also fell 30 per cent last month, reflecting a drop in buying interest following the new stamp duty.

On February 22, the government doubled the stamp duty on Hong Kong Property worth more than HK$2 million, and last month some of the city's biggest banks raised their mortgage rates.

The government announced yesterday that two residential sites would be put out for tender next month. Surveyors expect them to fetch between HK$3.7 billion and HK$3.97 billion in total.

One of them is a 283,112 square feet site situated in Tseung Kwan O, which can yield a maximum gross floor area of 821,028 sq ft. The government has stipulated the winning bidder has to build at least 840 flats on the site.

Midland Surveyors director Alvin Lam Tsz-pun said he expected this site to attract keen interest from developers and fetch HK$3.8 billion, or HK$4,600 per buildable square foot.

The estimate is higher than HK$4,301 per square foot Wheelock Properties paid for a neighbouring site on Wednesday.

Centaline Surveyors estimated the Hong Kong Property site would sell for HK$4,300 per square foot, or HK$3.53 billion.

Another smaller site, in Tuen Mun's So Kwun Wat, is 37,211 sq ft and can yield up to 48,374 sq ft of gross floor area. It is expected to sell for HK$170 million to HK$193.5 million, or HK$3,500 to HK$4,000 per square foot. The tender for the two sites will open on May 10 and close on June 21.

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Hong Kong shares gain, property jumps

引用: http://www.scmp.com

Hong Kong shares gained on Thursday, led by Hong Kong property and financial stocks, as investors looked for bargains after heavy selling last week.

Investors shrugged off comments from the territory’s financial services secretary that Hong Kong will report economic growth of just 1 per cent for 2012, its slowest since 2009.

The Hang Seng Index ended up 0.9 per cent at 23,413.25 points, rebounding from its sharpest weekly loss in three months last week. The China Enterprises Index of the top Chinese listings in Hong Kong gained 1.5 per cent. But turnover remained weak with many traders still away for the holiday.

Thursday was the first day of trade for Hong Kong this week after the long Lunar New Year holiday. Mainland Chinese markets are shut for the entire week and will resume trading on February 18.

“It’s just technical factors because everybody expects that the market opening higher would be good for the year,” said Ben Kwong, chief operating officer at securities house KGI Asia.

“We still have to see whether this rebound can be sustainable,” said Kwong, adding that some investors have already taken profits due to a lack of confidence after rotating into stocks that have underperformed the rally from lows late last year.

Chinese real estate stocks gained as worries over fresh Hong Kong property curbs eased.

China Overseas Land rose 2.5 per cent, while China Resources Land climbed 3.3 per cent.

“They were over-sold prior to the Chinese New Year holiday so today we see some bargain hunting in the leaders of the sector,” said Jackson Wong, Tanrich Securities equity vice-president for equity sales in Hong Kong.

Wong said the rebound should be moderate as housing policies remained uncertain before China’s leadership transition in March.

Macau gambling stocks rose after the territory posted record visitor arrivals from mainland China this week. Sands China was up 2.2 per cent, while Galaxy Entertainment Group jumped 3 per cent.

Financial stocks were boosted by better-than-expected China January loan data reported just before to the holiday.

Shares in Bank of Communications rose 2.3 per cent, while Industrial and Commercial Bank of China, the world’s biggest bank, gained 2.5 per cent.

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