Hong Kong developer Lai Sun’s Yuen Long project a sell-out as buyers regain confidence

Buyers flock to Lai Sun’s The Parkland in Yuen Long, snapping up nearly all units amid rate cuts and stock market gains, boosting market confidence

Hong Kong developer Lai Sun Development saw robust sales for its new residential project in the New Territories priced at a 10-year low, as buyers made the most of the recent rate cut and strong stock market performance.

Almost all 98 units on offer at The Parkland, located at 266 Tai Kei Leng in Yuen Long, were sold as of 5pm on Sunday. Most of the buyers were first-time buyers, according to agents.

Units in The Parkland range from 265 sq ft to 488 sq ft, with the first batch including 80 one-bedroom and 18 two-bedroom flats. The discounted selling price ranges from HK$2.43 million (US$313,000) to HK$4.63 million, or HK$8,614 to HK$10,663 per square foot. All 80 one-bedroom units are priced under HK$3 million.

The cheapest flat is a 282 sq ft one-bedroom unit priced at HK$2.43 million. It nearly matches the least expensive unit in Domus, developed by Paliburg Holdings in New Territories’ Hung Shui Kiu area in 2015, at HK$2.39 million.

The developer is now planning to launch a tender for special units next week, and the prices will continue to be competitive, according to Lai Sun’s senior vice-president Julian Poon Yui-man.

With the recent reduction in interest rates and the recovery in the city’s stock market, the property market sentiment is gradually improving, and market confidence will also slowly recover. Both property prices and transactions could experience a rebound soon, Poon told local media.

Recent home sales across Hong Kong have been strong because of improved market conditions. On Saturday, Hong Kong’s largest developer, Sun Hung Kai Properties, saw homebuyers snap up its latest residential project in Kai Tak after selling out more than 90 per cent of the units at The Yoho Hub II in Yuen Long the previous week.

Similarly, Emperor International sold all 85 units at One Jardine's Lookout in Happy Valley last weekend.

The sentiment improved recently after the Federal Reserve started the rate-easing cycle. The US central bank cut its benchmark interest rate by 50 basis points last month, with the Hong Kong Monetary Authority following suit. The cuts have paved the way for the city’s commercial banks to trim their rates, which is expected to translate into savings for borrowers who tie their loans to prime rates.

Developers have accelerated the pace of property sales after the interest-rate cut. The market is expected to record around 2,000 transactions in October, a seven-month high.

(South China Morning Post)

Homebuyers flock to Sun Hung Kai’s Cullinan Sky project in Kai Tak amid interest rate cut

As of 7pm, homebuyers snapped up 204 flats out of the 300 units on offer at Cullinan Sky Phase 1

Sun Hung Kai Properties (SHKP), Hong Kong’s largest developer by market capitalisation, on Saturday saw homebuyers flock to its latest residential project in Kai Tak, the city’s former airport, on the back of the recent interest-rate cut and stock market rally.

As of 7pm, the developer had sold 204 flats out of the 300 units on offer at Cullinan Sky Phase 1, according to agents. Under this project’s sales programme, the 204 units were snapped up based on their price list, while 96 were up for tenders. The units up for tenders have not yet been awarded.

“The new interest rate cut cycle and the surging stock market in Hong Kong have accelerated homebuyers’ desire to enter the market,” a property agent said on Saturday.

Among the homebuyers who flocked to the sales centre of Cullinan Sky at the International Commerce Centre in West Kowloon, around 40 per cent were from mainland China, according to the agent. The agent said young buyers accounted for about 50 to 60 per cent of those who made inquiries on Saturday.

Ahead of this weekend’s sale, the Cullinan Sky project already attracted around 29,161 prospective buyers who had put down a deposit.

SHKP priced the first batch of units on offer at Cullinan Sky Phase 1 at HK$19,668 (US$2,533) per square foot on average, about 20 per cent lower than the stock in new projects in the same area, according to a local property agency.

The discounted pricing by SHKP reflects the obstacles still faced by the city’s property market, such as an excess inventory of homes and a weak economy.

The 204 units up for sale include two-bedroom flats, which measure from 236 sq ft to 559 sq ft. The price after discount has been set between HK$4.74 million and HK$12.28 million, or HK$17,015 to HK$24,284 per sq ft. The batch by price list is valued at more than HK$1.7 billion.

Meanwhile, the 96 units up for tenders are bigger flats with three to four bedrooms. These range from 854 sq ft to 3,936 sq ft.

SHKP acquired the plot in Kai Tak in 2018 for HK$25.1 billion, the most expensive development site in Hong Kong at the time.

Beijing’s latest stimulus package has benefited the Hong Kong stock market, which has seen a flow of fresh funds, and is expected to also push up the local property market, according to another property agent.

The Hang Seng Index rose 23 per cent in the past two weeks, restoring more than US$3 trillion in market value to Chinese stocks in Hong Kong, Shanghai, Shenzhen and New York, according to Bloomberg data.

Rising rents in Hong Kong is also seen as a positive factor for the local property market, the agent said. The rental home index in July was six points shy of the peak in August 2019, setting the stage for more investors to buy in the property market for potential returns.

“It is expected that the property market sentiment will continue to improve,” the agent said. “This month, the number of first-hand transactions could reach 2,500, a seven-month high, while property prices are expected to stop falling and rebound by 3 to 5 per cent in the fourth quarter.”

(South China Morning Post)

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力寶中心呎售12406 創近14年新低

市場消息指，金鐘甲級商廈力寶中心二座低層單位，面積2,199平方呎，近日以2,728萬元沽出，呎價低見12,406元，屬於2010年之後、近14年新低價。據悉，原業主在2018年3月以8,280萬元購入，持貨至今6年，帳面勁蝕5,552萬元，貶值高達67%。

有外資代理行發表9月份香港寫字樓租賃市場報告指出，截至第二季度，寫字樓空置率達到14.8%，創下歷史新高，亦超越過往低迷時期的水平，如沙士及2009年的全球金融危機，特別是核心商業區，如中環的空置率，激增220萬平方呎。

料今年寫字樓租金降10%

該行指主要原因為經濟表現疲弱而導致的需求減少、租客喜好轉變及高息環境。多種因素導致各區寫字樓空置樓面合共達到1,060萬平方呎，又料空置率將於2027年升至17%。租金自2019年高峰以來下降40%，反映行業需應對著經濟持續的不確定性，及正經歷重大的轉型與調整。該行亦料今年寫字樓租金預測將下降5%至10%。

另外，中環德己立街38至44號好利商業大廈低層地下A號舖，位於蘭桂坊地段，由接管人透過萊坊放售，該舖面積3,228平方呎，曾經由酒吧租用。該舖曾經在今年初由持貨多年的長情業主放售，當時市值2.5億元，但近日被接管後，估計現時市值約1.3億元，貶值近5成。

(經濟日報)

更多力寶中心寫字樓出售樓盤資訊請參閱：力寶中心寫字樓出售

更多金鐘區甲級寫字樓出售樓盤資訊請參閱：金鐘區甲級寫字樓出售

寫字樓空置率14.8%新高

本港寫字樓空置率高企，有外資代理行最新發表的香港寫字樓租賃市場報告，截至今年9月，全港各區寫字樓空置樓面合共1060萬方呎，空置率達14.8%的歷史新高。

報告指出，香港寫字樓市場目前正面臨前所未有的挑戰，空置率超越過往低迷時期，如2003年沙士的12.5%及2009年全球金融危機的9.2%空置率。中環核心商業區最新空置樓面高達219.4萬方呎，空置率約10.9%。空置情況嚴重，由多種因素造成，包括經濟表現疲弱而導致的需求減少、租客喜好轉變及高息的影響。

市場競爭激烈，業主須大幅降低租金，導致租金自2019年高峰挫40%。核心與非核心區的租金差距收窄，一些金融機構將其非核心業務重新遷回核心商業區內。該行預期，今年寫字樓租金料下降5%至10%。該行代理表示，據2011至2019年平均每年130萬方呎的淨吸納量計，寫字樓空置率預計在2027年達17%。

(信報)