發展商積極併購市區舊樓，周五 (9日) 有兩個舊樓併購項目出現新進展，其中恒地 (00012) 循強制拍賣以底價5.24億元統一石硤尾耀東街9至14號舊樓業權，將連同毗鄰的舊樓分期發展。宏安地產 (01243) 於2019年申請強拍的黃大仙鳴鳳街舊樓，同日也獲土地審裁處批出強制售賣令，底價8.05億元。
宏安地產於申請強拍時，持有上址約80.6%業權，及後進一步收購小業主的物業，業權遂增加至約83.5%。該地盤大綱圖劃為「住宅 (甲類) 1」用途，可建樓面面積約8.67萬方呎。
New World’s compensation to Pavilia flat buyers may slash valuations and cut the bank loans available to mortgage borrowers
More than half of the buyers chose a cash payment method, in which the purchase is fully settled within 180 days of the contract
The remaining 417 buyers, making up 48.9 per cent of the purchase, chose to pay only when construction is completed, according to data by mortgage broker
New World Development’s decision this week to compensate owners of the flats it plans to demolish at The Pavilia Farm apartment complex could slash the valuation of the property and reduce the amount of bank loans available to mortgage borrowers.
Slightly more than half of the customers who bought the 852 apartments at The Pavilia Farm III chose a so-called cash payment method, in which the purchase is fully settled within 180 days of the contract. The remaining 417 buyers, making up 48.9 per cent of the purchase, chose to pay only when construction is completed, according to data by mortgage broker.
The two payment options make a difference in how New World compensates customers who signed the contracts for blocks 1 and 8, the two towers out of the seven-block project earmarked for demolition due to defects. Cash payment customers will receive a compensation of up to 7.6 per cent of their property’s value, while buyers who opted for the stage payment plan will get HK$380,000, New World said on Wednesday.
“Banks may deduct the compensation from the loan amount, so buyers who already have the mortgage may need to make up the difference in the first instalment,” agent said.
Banks may revalue their mortgages when the flats are delivered to buyers, now delayed for nine months until March 2024 for blocks 1 and 8. Any decline in the valuation will lead to a corresponding reduction in the mortgage loan available, the agent said. Still, the chance of this happening is slim, because the apartments at The Pavilia Farm III, which start from HK$6.76 million and go up to HK$24 million (US$3.1 million), are low enough that any adjustment would not affect the mortgage by much, the agent said.
The Pavilia Farm comprises 3,090 apartments in seven tower blocks, to be built in three phases. The entire project is scheduled for completion in 2023.
The developer decided to demolish and rebuild blocks 1 and 8 in Tai Wai, after finding that the concrete walls in the podium of the two towers failed to “meet the requirements of the approved design” found during concrete strength tests.
The construction quality and structural safety of the remaining 2,198 units in the five towers of phases I and II comply with all relevant Hong Kong regulations, a New World spokeswoman said on Thursday.
More than 10 of the 57 floors in the two towers were built before the defects were found on June 18, by which time 846 of the total 892 flats in the third phase had already been sold, the developer said.
Banks are likely to be cooperative and flexible, as the compensation had been announced and arranged in a transparent manner, and New World is trustworthy as a developer, mortgage broker said. Some banks have said that the case will be processed as usual according to procedures and timetables, the mortgage broker added.
(South China Morning Post)
Hongkongers continue their beeline for One Victoria flats in Kai Tak as cheap funds, economic growth lure buyers into market
China Overseas Land and Investment (COLI) sold 118 apartments, or a third of the 286 units on offer at One Victoria by 9pm
The launch was oversubscribed by nine times, receiving 2,800 bids for the 286 flats on offer
Hong Kong’s homebuyers continued making their beeline for the first waterfront flats built on the city’s former airport runway, as low-cost mortgages combined with signs of an economic recovery and easing Covid-19 outbreaks to lure them back into the property market.
China Overseas Land and Investment (COLI) sold 118 apartments, or 41 per cent of the 286 units on offer at One Victoria as of 9pm, sales agents said. The project, built on a strip of land that protrudes into Victoria Harbour, is about 45 minutes walk from MTR Corporation’s Kai Tak subway station. The distance – considered far by Hong Kong standards – did little to deter buyers.
“Kai Tak will be a key area for development, so its sophisticated planning and high quality of property in the area attract investors,” property agent said, the agent also estimated that 40 per cent of customers are buying One Victoria as a “long-term investment”.
The One Victoria project comprises 1,059 flats of different sizes, all scheduled for delivery at the end of March in 2023.
The launch, the second weekend of sales, was oversubscribed nine times, receiving 2,800 bids for the 286 flats on offer. Last weekend, COLI sold 91 per cent of the flats on offer.
The current batch on offer featured units with one to three bedrooms, measuring between 332 square feet and up to 766 square feet 766 sq ft (72 square metres). Prices started from HK$8 million, going up to HK$23.6 million (US$3 million), or HK$28,103 per square foot on average after discounts, almost 22 per cent more than the launch price on June 22.
China’s central bank announced a cut in the nation’s reserve requirement ratio (RRR) on Friday, a much-anticipated move that released about 1 trillion yuan (US$154.3 billion) into the monetary system for commercial banks to lend to businesses and factories to bolster the post-coronavirus economic recovery.
Hong Kong’s monetary policy is run in lockstep with the US Federal Reserve to maintain the city’s currency peg with the US dollar. The world’s most powerful central bank is expected to keep rates at current low levels until 2023.
The continuous flow of financial liquidity will boost Hong Kong’s residential property market, helping owner-occupiers afford new homes through low mortgage rates, while spurring investors to park their capital in fixed assets that generate higher returns.
“Residential property will continue to serve as a tool for [investors] to hedge against inflation,” property agent said.
The market could get another leg up when Hong Kong’s northern border with mainland China reopens, which would open the doors for tourists, business travellers and investors to re-enter the city.
The Hong Kong economy is also seeing signs of recovery amid the government’s efforts in boosting retail sales with HK$36 billion vouchers for citizens. Housing prices are expected to further rise as the local residential land supply will shrink to the lowest level in a decade. Total housing supply could top 7,050 units this financial year, bringing the total to about 55 per cent of the target of 12,900 apartments.
Hong Kong’s housing prices may increase to a record this month, with sales of new homes expected to increase by 20 per cent to 18,000 units from last year, the agent said.
“If the peak of housing prices doesn’t come in July, it will be in August due to various positive factors,” the agent said. “Housing prices in many countries around the world have risen in the past two years during the easier monetary policy, but Hong Kong had lagged behind. Once the border with the mainland reopens, new capital from the mainland will support the Hong Kong market.”
(South China Morning Post)