Best Fortune - New Roundup

12 building plans approved in Dec

2024-02-16

The Buildings Department approved 12 building plans last December - six on Hong Kong Island, one in Kowloon and five in the New Territories.

Of the approved plans, seven were for apartment and apartment-commercial developments, two were for commercial developments, and three were for community services developments.

Consent was given for works to start on 11 building projects which, when completed, will provide a combined 66,519 sq m of gross floor area for domestic use involving 1,767 units, and 68,176 sq m of gross floor area for non-domestic use.

Additionally, the department received notification of commencement of superstructure works for six building projects.

It also issued 20 occupation permits - three on Hong Kong Island, seven in Kowloon and 10 in the New Territories.

The buildings certified for occupation comprise 5,450 sq m of gross floor area for domestic use, involving 128 units, and 55,480 sq m for non-domestic use.

Meanwhile, the department received 2,431 reports about unauthorised building works in December and issued 923 removal orders.

(The source: news.gov.hk)

Property bill passage welcomed

2024-01-31

The Government welcomed the passage of the Stamp Duty (Amendment) (Residential Properties) Bill 2023 by the Legislative Council today, which implements the adjustments to the demand-side management measures for residential properties as announced in the 2023 Policy Address.

The adjustments include shortening the applicable period of the Special Stamp Duty from three years to two years; reducing the respective rates of the Buyer's Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) from 15% to 7.5%; and providing a mechanism for the suspension of payment of the BSD and the NRSD for incoming talent' acquisition of residential properties in Hong Kong.

Secretary for Housing Winnie Ho said the Government has been adopting a pragmatic approach to continuously evaluating the residential property market situation.

She noted the adjustments to the demand-side management measures under the bill were made having regard to the overall situation, adding that the Government will continue to closely monitor the residential property market to ensure its healthy and steady development.

(The source: news.gov.hk)

Mortgage loans down 25.3%

2024-01-31

The value of residential mortgage loans approved in December 2023 was $18.3 billion, a 25.3% decline compared with November 2023, the Monetary Authority announced today.

Mortgage loans financing primary market transactions dropped 16.3% to $5.2 billion, while those financing secondary market transactions decreased 5.1% to $8.9 billion.

Loans for refinancing fell 52.6% to $4.3 billion.

Mortgage loans drawn down during the month dropped 23.4% to $12.4 billion.

The number of mortgage applications in December 2023 stood at 4,768, a month-on-month decrease of 20.5%.

The outstanding value of mortgage loans fell 0.1% to $1.8551 trillion at the end of December 2023.

(The source: news.gov.hk)

Land premium arrangement extended

2023-12-28

Land premium arrangement extended

2023-12-28

The Development Bureau today announced the extension of the arrangement for charging land premiums at standard rates for lease modifications on two fronts.

First, to regularise the arrangement for redevelopment of industrial buildings (IBs) constructed before 1987 with the scope expanded to cover IBs for special industrial use, and second, to introduce a pilot scheme applicable to agricultural land in the New Territories (NT) outside new development areas (NDAs).

The bureau said the standard rates arrangement is an alternative to the conventional premium assessment mechanism, so as to provide certainty to the premium amount and streamline development procedures to expedite development.

Since the implementation of a pilot scheme to apply this arrangement to pre-1987 IBs and the extension to NDA projects under the Enhanced Conventional New Town Approach in the past two years, the arrangement has been supported by the industry and professional organisations.

This round of extension was announced in the 2023 Policy Address, which will regularise the arrangement for IBs as well as spread the benefits to development projects outside NDAs.

The existing pilot scheme for redevelopment of pre-1987 IBs will be regularised on the basis of the existing framework, with the scope expanded to cover pre-1987 IBs held under leases for special industrial uses such as leather tanning, garment manufacturing and food production.

Upon regularisation, the level of all standard rates applicable to redevelopment of IBs will be reviewed annually by the Lands Department to ensure the rates are in line with the prevailing market conditions.

The new rates will be effective on April 1, 2024.

As regards NT agricultural land outside NDAs, the Government will introduce a pilot scheme with the first phase covering the new town areas within Yuen Long, North and Tuen Mun districts as well as areas in the vicinity of existingproposed railway stations within these districts.

It aims to steer the market to focus resources on the agricultural land that is well supported by transport infrastructure and better community planning and infrastructure to carry out high-density development, release the land potential therein and expedite land and housing supply.

The areas covered by the first phase will be divided into 10 zones. The department will set the standard rates for different zones and different uses before and after lease modification, and the level of rates will be reviewed annually as well.

In addition, the Development Bureau will review the geographical coverage of the standard rates arrangement annually taking into account the planning and implementation progress of the railway projects in the NT mentioned in the Hong Kong Major Transport Infrastructure Development Blueprint.

The bureau said this round of measures will provide a standing option for premium to be charged at standard rates for around 900 pre-1987 IBs in Hong Kong, to provide certainty on premium amount for owners who may wish to redevelop their IBs and shorten the time needed for premium negotiation.

At the same time, the measures will encourage the redevelopment of IBs for special industrial uses.

As for the pilot scheme for NT agricultural land outside NDAs, a total of 24 cases will be covered providing around 8,500 residential units in total, which is over 40% of the potential supply of residential units among all lease modification applications involving NT agricultural land being processed.

Moreover, approved planning applications will also benefit when they proceed to the lease modification procedures in due course.

There were five planning applications approved in the past five years which involve land falling within the geographical coverage of the pilot scheme, providing a total of around 8,700 residential units.

The Government has set out the implementation details in the Legislative Council Brief & Practice Notes promulgated on the same day. The level of standard rates will be announced in the first quarter of next year.

(The source: new.gov.hk

3 historic buildings to be revamped

2023-12-27

The Development Bureau today announced the three historic buildings included under Batch VII of the Revitalising Historic Buildings Through Partnership Scheme.

The bureau invited revitalisation proposals from non-profit-making organisations (NPOs) for one of them - Watervale House, the Former Gordon Hard Camp, in Tuen Mun. The application deadline is noon on April 10, 2024.

The other two historic buildings are the Old Lunatic Asylum (Chinese Block) in Sai Ying Pun and No. 23 Coombe Road at the Peak. Relevant application arrangements will be announced in due course.

Following a comprehensive review of the revitalisation scheme, the bureau decided to announce all the historic buildings included in the latest batch of the scheme and invite applications in phases.

This arrangement aims to expedite the assessment process and facilitate advance planning by interested organisations.

Watervale House, the Former Gordon Hard Camp, is a Grade 2 historic building. Built in 1933, it was originally a private residence. In 1959, the British War Department purchased the building and used it as an officers' mess.

Guided tours to Watervale House, the Former Gordon Hard Camp, will be arranged for NPOs on January 12, 2024, and a workshop will be held on January 15, 2024, for them to learn about the application procedures and assessment criteria.

Interested NPOs can register online from now until January 8, 2024.

Following the comprehensive review, the revitalisation scheme allows NPOs with charitable status under section 88 of the Inland Revenue Ordinance to partner with non-charitable organisations to submit applications; and increases the maximum one-off grant to meet the starting costs and operating deficits of the social enterprises for the first two years of operation from $5 million to $6 million.

(The source: news.gov.hk)

Subsidised flat mortgage rules eased

2023-11-17

The Housing Authority Subsidised Housing Committee (SHC) today announced the relaxation of mortgage arrangements for subsidised sale flats (SSFs) by extending the maximum mortgage default guarantee period and mortgage repayment period.

Regarding SSFs sold on the secondary market, the maximum mortgage default guarantee period will be extended to 50 years, counting from the date of the first assignment of individual properties. This will cover new Home Ownership Scheme (HOS) flats, Green Form Subsidised Home Ownership Scheme (GSH) flats and Tenants Purchase Scheme (TPS) flats.

Meanwhile, the maximum mortgage repayment period for such flats sold on the secondary market will be extended from 25 years to 30 years.

The relaxation will take effect on March 1, 2024.

The authority said that with the extension of the maximum mortgage default guarantee period to 50 years for SSFs sold on the secondary market, the number of flats with a residual guarantee period of more than 10 years will increase substantially from about 14% to about 98% for HOS and GSH flats, and from about 24% to 100% for TPS flats.

Together with the extension of the maximum mortgage repayment period, the new arrangement should help SSF purchasers secure mortgage loans of a longer tenor and facilitate the circulation of SSFs on the secondary market, the authority added.

For SSFs sold on the primary market, the maximum mortgage default guarantee period will be extended from 25 years to 30 years for TPS flats.

The maximum mortgage repayment period will be extended to 30 years for HOS, GSH projects and TPS flats sold on the primary market.

The relaxations on SSFs sold on the primary market will start from January 1, 2024.

(The source: news.gov.hk)

Property sales down 24.5%

2023-11-02

The Land Registry recorded 2,938 sale and purchase agreements for all building units received for registration in October, down 24.5% compared with September and 33.9% lower year-on-year.

The total consideration for such agreements fell 2.5% from September to $29 billion in October, while an 11.5% year-on-year decrease was recorded.

Of the agreements, 2,123 were for residential units, down 25.8% from September and 32.6% lower than a year ago.

The total consideration for residential units was $24.5 billion, a rise of 7.5% compared with September 2023 and down 9.9% from October last year.

There were 365,510 land register searches last month.

(The source: new.gov.hk)

Right time to ease property measures

2023-10-25

Chief Executive John Lee today said the Government made the decision to adjust the demand-side management measures for residential properties after assessing both the local situation and global factors on the property market.

Elaborating on his Policy Address initiatives at a press conference this afternoon, Mr Lee said the market situation has changed since the stringent measures relating to property prices were introduced.

“It was a time when speculation was very high, the trend of property prices kept going up, and also, people’s attention seemed to focus on property speculation and making quick money was the goal.

“After the introduction of those measures and in the recent examination of the situation, first of all the interest rate has gone up and it will remain high, the geopolitical situation is going to be complicated, the whole world is facing pressure in regard to economic development and also, property prices have already been going down from their height.”

Mr Lee added that he had heard a lot of suggestions during the Policy Address consultation period and had to strike the right balance when deciding to relax the measures.

“The Government has to come to a decision after making an assessment of the situation of Hong Kong, which includes not just locally but also internationally because the property market is highly affected by interest rates, by economic situations and also by sentiment.

“I have come to the stage, after taking into consideration all these things, that it is time to relax some measures.”

(The source: news.gov.hk)

Property sales down 16.5%

2023-10-04

The Land Registry recorded 3,893 sale and purchase agreements for all building units received for registration in September, down 16.5% compared with August and 19.5% lower year-on-year.

The total consideration for such agreements fell 14.7% from August to $29.8 billion in September, while a 14.4% year-on-year decrease was recorded.

Of the agreements, 2,862 were for residential units, down 11.9% from August and 26.1% lower than a year ago.

The total consideration for residential units was $22.8 billion, a drop of 20.5% compared with August 2023 and down 21.7% from September last year.

There were 331,931 land register searches last month.

(The source: news.gov.hk)

Night Vibes HK Campaign launched

2023-09-14

The Government today announced the start of the “Night Vibes Hong Kong” Campaign featuring different sectors of the community playing their part in staging a wealth of diversified night-time events with local characteristics across the city starting from mid-September.

Financial Secretary Paul Chan officiated at the “Night Vibes Hong Kong” Campaign Launch Ceremony this evening to unveil a series of exciting activities.

Speaking at the ceremony, Mr Chan said that although society had resumed normal entering the third quarter, air services, tourist arrivals and domestic spending had yet to fully recover.

He noted that the lifestyle habits of many people had changed following the global pandemic that lasted for three years, and that they might not go out as frequently in the evening.

Mr Chan added that the campaign led by the Government had united different sectors of the community to create a dynamic vibe for the city at night. Through a wealth of activities with different themes, including leisure, gourmet, music, culture and more, families, friends and co-workers could have more choice of night-time entertainment and gatherings to enjoy and relax.

The campaign will start from around the Mid-Autumn Festival later this month, running across National Day, Halloween, Christmas and New Year until early 2024.

A series of events will take place on harbourfront sites, including performances, cultural events, markets and guided tours. The Hong Kong Wine & Dine Festival will make its physical return to the Central Harbourfront Event Space in October, to provide international liquor assortments and delights as well as emerging wine products to citizens and tourists. There will also be a month-long citywide dining promotion of restaurants and bars.

A wealth of exciting activities will be held during the coming festivals, including the return of the National Day Fireworks Display after five years; the Tai Hang Fire Dragon Dance which will resume for the first time since the pandemic in the coming Mid-Autumn Festival; a stunning drone show to be held simultaneously in Hong Kong and Shenzhen; the Mid-Autumn Lantern Carnivals at Victoria Park which will display lanterns and also feature a bamboo stage for Cantonese opera performances; as well as youth group performances and acrobatic performances at venues in Sha Tin and Tuen Mun.

Ocean Park and Hong Kong Disneyland will present time-limited Halloween events; the Hong Kong WinterFest in the West Kowloon Cultural District will set up a giant outdoor Christmas tree; the Tourism Board will hold a New Year's Eve countdown event; dry goods stalls will resume at all Lunar New Year Fairs at the district level; and the Hong Kong Chinese New Year Night Parade will also resume on the evening of Lunar New Year's Day.

Citizens and tourists can participate in cultural and art activities; cinemas will offer ticket discounts for night-time screenings; and the Museum of Art, the Science Museum and the Space Museum will extend opening hours until 10pm from Friday to Sunday and on public holidays. M+ at the West Kowloon Cultural District will offer night tours and various art and cultural activities.

To give a diversified leisure experience, over 80 shopping malls will organise cultural and sports events as well as outdoor night markets, provide dining and consumption offers, and extend their opening hours in light of the night-time activities.

More than 100 Lan Kwai Fong Association members' restaurants and bars will provide dining offers.

The 57th Hong Kong Brands & Products Expo will have around 900 stalls; the public can enter the Public Enclosure of Happy Valley Racecourse every Wednesday night for free; and the Mass Transit Railway will launch “Nighttime Delights - Ride 5 Get 1 Free” to offer a domestic single ride for every five-night ride after 10.30pm.

The Tourism Board will offer “Hong Kong Night Treats” dining vouchers for visitors and Open-top Bus tours at a special price.

The board is also discussing with different stakeholders to explore ways to enhance the atmosphere of the Temple Street night market, with a view to increasing its attractiveness through new elements.

(The source: news.gov.hk)

Property sales down 7.3%

2023-08-02

The Land Registry recorded 4,426 sale and purchase agreements for all building units received for registration in July, down 7.3% compared with June and 11.4% lower year-on-year.

The total consideration for such agreements dropped 16.9% from June to $33 billion in July, while a 21.4% year-on-year decrease was recorded.

Of the agreements, 3,065 were for residential units, down 15.2% from June and 16.5% lower than a year ago.

The total consideration of residential units was $26.6 billion, a decrease of 20.9% compared with June and down 21.5% from July last year.

There were 437,079 land register searches last month.

(The source: news.gov.hk)

Mortgage loan ratios adjusted

2023-07-07

The Monetary Authority today issued guidelines to banks regarding adjustments to the countercyclical macroprudential measures for mortgage loans.

In a meeting with media today, Monetary Authority Chief Executive Eddie Yue said there was room to make the adjustments while continuing to maintain banking stability and ensure proper risk management in relation to mortgage loans.

The adjustments include, firstly, changes to maximum loan-to-value (LTV) ratios for self-occupied residential properties. For properties with a value of $15 millionless, the maximum LTV ratio will be raised to 70%. For properties with a value of more $15 million and up to $30 million, the maximum ratio will be increased to 60%. For those with a value above $30 million, meanwhile, it will remain unchanged at 50%.

To avoid a sudden drop in applicable LTV ratios, the ratios for properties in certain value ranges will change gradually. The maximum LTV ratio for non-self-use residential properties will remain unchanged at 50%.

The second adjustment increases the maximum LTV ratio for non-residential properties from 50% to 60%, while the third increases the maximum LTV ratio for mortgage loans assessed on the basis of borrowers’ net worth from 40% to 50%. This adjustment is applicable to both residential and non-residential properties.

The adjustments take effect immediately, and apply to property transactions with provisional sale and purchase agreements signed todaysubsequently.

Mr Yue said this was the first time the authority had relaxed the countercyclical macroprudential measures for residential properties since they were implemented in 2009.

Noting that people would now be able to take out property mortgage loans at higher LTV ratios, he reminded prospective buyers to carefully assess their own ability to afford a property and prudently manage the financial risks involved.

Also today, HKMC Insurance announced amendments to its Mortgage Insurance Programme for completed residential properties in order to provide assistance to homebuyers.

(The source: news.gov.hk)

Property sales down 9.6%

2023-07-04

The Land Registry recorded 4,777 sale and purchase agreements for all building units received for registration in June, down 9.6% compared with May and 24.1% lower year-on-year.

The total consideration for such agreements dropped 11% from May to $ 39.7 billion in June, while a 25.4% year-on-year decrease was recorded.

Of the agreements, 3,613 were for residential units, down 9.7% from May and 25.1% lower than a year ago.

The total consideration of residential units was $33.6 billion, a decrease of 8.6% compared with May and down 25.5% from June last year.

There were 393,475 land register searches last month.

(The source: news.gov.hk)

Mortgage loans down 21.2%

2023-05-31

Residential mortgage loans approved in April decreased 21.2% compared with March to $35.4 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions increased 0.8% to $9.7 billion, while those financing secondary market transactions fell 29% to $21.3 billion.

Loans for refinancing also went down 17.5% to $4.4 billion.

Mortgage loans drawn down during the month dipped 6.5% to $17.1 billion.

The number of mortgage applications in March was 8,368, a month-on-month decrease of 27.6%.

The outstanding value of mortgage loans rose 0.2% to $1.8228 trillion at the end of April.

(The source: news.gov.hk)

Structural wall removal probe set

2023-05-29

The Buildings Department announced that it has issued a statutory order to the owner of a unit who removed part of a structural wall at The Capitol in Lohas Park.

Apart stressing that it is highly concerned about the incident, the department made it clear that it has also commenced a probe.

It explained that a full investigation on any contravention under the Buildings Ordinance is underway and, depending on the investigation result, the department will take appropriate punitive action under the ordinance, including instigating prosecution.

The department staff conducted an inspection at the unit concerned yesterday, together with the owner, the interior designer responsible for the unit’s renovation and staff of the property management company.

Certain contraventions were found, including the removal of part of a 200mm thick structural wall, which was about 720mm wide by 2150mm high, between the living room and the bedroom for installing a new door.

In the statutory order issued, the department required the owner concerned to appoint an Authorised Person (AP) to submit a remedial proposal, including an assessment of the overall effect on the building’s structure due to the alteration works and proposed remedial works plans.

As part of the statutory order, the AP must also obtain the department’s approval and consent before the commencement of such remedial works to reinstate the parts of the building so affected in accordance with the approved plans.

The removal of part of the structural wall in this incident is neither exempted building works nor minor works, the department added.

Such works involving structural walls without the department’s approval will be regarded as unauthorised building works.

The owner concerned informed the department that a contractor has been arranged to install temporary supports at the new door opening.

The department also noted there is no danger to the overall building structure after the units above and below the unit concerned were inspected.

(The source: news.gov.hk)

Stamp duty bill passage welcomed

2023-05-17

The Government welcomed the passage of the Stamp Duty (Amendment) Bill 2023 by the Legislative Council today.

The bill gives effect to a proposal on stamp duty in the Budget which adjusts the value bands of ad valorem stamp duty (AVD) payable for sale and purchasetransfer of residential and non-residential properties (Scale 2 rates).

Secretary for Financial Services & the Treasury Christopher Hui said the proposal is aimed at easing the burden on ordinary families of purchasing their first residential properties, particularly small and medium residential units.

After the adjustment to the value bands of AVD at Scale 2 rates, the stamp duty applicable to the property transactions with amountvalue of consideration between $2 million and below $10.08 million will be reduced, with the reduction amount up to $67,500.

The Government noted that the adjustment will benefit around 37,000 property buyers and reduce its tax revenue by about $1.9 billion a year.

(The source: news.gov.hk)

Stamp duty value bands adjusted

2023-02-22

Financial Secretary Paul Chan announced in his Budget adjustments to the computation of the ad valorem stamp duty payable for the sale and purchasetransfer of residential and non-residential properties with effect today.

In his speech, Mr Chan pointed out that more than 90% of residential property buyers last year were first-time buyers.

Having considered that no adjustments have been made to the value bands of the property stamp duty since 2010, he decided to make adjustments in this regard with the aim of easing the burden on ordinary families of purchasing their first residential properties, particularly small and medium units.

It is anticipated that such a measure will benefit 37,000 buyers and cost the Government approximately $1.9 billion per year.

The Financial Secretary also stressed that the current demand-side management measures for residential properties will remain unchanged.

Land supply

The 2023-24 Land Sale Programme will cover a total of 12 residential sites. Together with railway property development, private development and redevelopment projects as well as the Urban Renewal Authority's projects, the potential land supply for the whole year is expected to have a capacity of about 20,550 flats, around 60% more than the annual demand of 12,900 units projected in the Long Term Housing Strategy.

In addition, three commercial sites and three industrial sites will be put up for sale, providing about 200,000 sq m of commercial floor area and 170,000 sq m of industrial floor area respectively.

Mr Chan said: “The Government's effort to expedite land creation has yielded remarkable results.

“We will secure land of a scale nearly double that of the previous five-year period for the production of no less than 72,000 private housing units in the coming five years, and make the land available to the market through the land sale programmes and railway property developments.

“Among such land, nearly 60% comes new development areasnew town extensions, and another 40% other districts under the government land sale programmes and railway property developments.”

Housing supply

The Government identified sufficient land for the provision of about 360,000 public housing units, around 20% higher than the supply target in the Long Term Housing Strategy, which will be able to meet the demand for about 300,000 public housing units in the next 10 years.

It also selected eight sites for the construction of light public housing in order to fill the short-term gap of public housing supply and improve the living conditions of people staying in inadequate housing.

As at the end of 2022, about 7,000 transitional housing units have been put into service. It is expected that about 14,000 additional units will be coming on stream in the next two years.

On private housing, it is estimated that the completion of private residential units will average over 19,000 units annually in the five years this year onwards. The potential supply of first-hand private residential units for the next three to four years is expected to remain at a relatively high level of about 105,000 units.

Northern Metropolis & artificial islands

Further to the establishment of a steering committee and an advisory committee, the finance chief stated that the Government is making preparations for setting up a Northern Metropolis Co-ordination Office to take forward related work.

It has also formed a task force with relevant Mainland authorities to strengthen communication and collaboration on matters related to the development of the Northern Metropolis.

Regarding San Tin Technopole, the Government will start a consultation in the second quarter on the development proposals and land use planning of the project, which covers 150 hectares of new land for innovation and technology (I&T) use. The site formation works of the first batch of this new land will begin in 2024.

Mr Chan added that the Government has put forth preliminary proposals on the scope of reclamation, land use, the transport infrastructure network and financial arrangements of the Kau Yi Chau Artificial Islands, while the relevant public engagement activities have been launched.

After finalising a more detailed planning and design concept, the Government will contemplate appropriate financial arrangements for the project, examine various financing options and their economic benefits, and explore the optimal package with the community.

Construction I&T

The Government has earmarked $30 million for the Development Bureau to conduct a study on establishing the Building Testing & Research Institute and carry out related planning and preliminary design, Mr Chan announced.

Apart research and development (R&D) activities for innovative materials, construction methods and technologies, the centre will also devise standards, conduct testing and provide accreditation to spearhead innovation in the construction industry and attract R&D talent to the city.

In addition, the centre will capitalise on Hong Kong's unique advantages to provide a platform for the country's construction standards and related products to align with those in the international market.

Another $30 million has been earmarked for conducting a study on the construction of the first advanced construction industry building at a site of about three hectares in Tsing Yi. The Government plans to provide space for operators to set up steel reinforcement bar prefabrication yards, processing sites for multi‑trade integrated mechanical, electrical and plumbing as well as other advanced manufacturing yards in the building.

Furthermore, the Financial Secretary said the Government has reserved $15 million for studying and putting in place measures to strengthen the supply chain of the modular integrated construction (MiC) modules, covering areas such as the manufacturing, transportation, storage and accreditation of the modules.

It will also explore the provision of manufacturing and storage sites in the Northern Metropolis as well as ways to enhance collaboration with the Guangdong-Hong Kong-Macao Greater Bay Area and optimise the MiC supply chain.

(The source: news.gov.hk)

Property sales up 24.2%

2023-02-02

The Land Registry recorded 4,427 sale and purchase agreements for all building units received for registration in January, up 24.2% compared with December 2022, but 25.1% lower year-on-year.

The total consideration for such agreements rose 25.6% December to $32.5 billion in January, while a 40.3% year-on-year decrease was recorded.

Of the agreements, 3,051 were for residential units, up 21.7% December but 28.6% lower than a year ago.

The total consideration of residential units was $25.4 billion, a rise of 20.9% compared with December, but down 41.4% January last year.

There were 321,347 land register searches last month.

(The source: news.gov.hk)

Mortgage loans down 9.4%

2023-02-01

Residential mortgage loans approved in December decreased 9.4% compared with November to $25.6 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions dropped 14.3% to $7 billion, while those financing secondary market transactions increased 0.4% to $12.5 billion.

Loans for refinancing fell 20.2% to $6 billion.

Mortgage loans drawn down during the month rose 2.8% to $21.9 billion.

The number of mortgage applications in December stood at 7,510, a month-on-month drop of 3.6%.

The outstanding value of mortgage loans increased 0.4% to $1.8099 trillion at the end of December.

(The source: news.gov.hk)

More light public housing sites set

2023-01-30

The Housing Bureau today announced that it has selected four more sites in Kai Tak, Ngau Tau Kok, Chai Wan and Siu Lam to build light public housing (LPH) units.

Together with the four sites announced earlier in Tuen Mun, Yuen Long and Sheung Shui, the bureau has chosen eight sites for light public housing.

Among the 30,000 units to be completed in the coming five years, about half of them will be in urban areas. The internal floor area of light public housing units range about 13 to 31 sq m.

Apart having a self-contained toilet, shower area and open cooking space, each unit comes equipped with basic facilities such as a water heater and an exhaust fan.

Open spaces will be reserved at the estates for leisure and event organising purposes and to facilitate mutual assistance among the residents.

Secretary for Housing Winnie Ho hosted a briefing this afternoon on the latest progress of LPH projects. She also arranged for members of the Executive Council and Legislative Council and the media to visit the Kai Tak site that is estimated to provide more than 10,000 units.

At the briefing, Ms Ho said: “This is a very important social project. That is the value of light public housing, to save people and give them an option to move out of very very poor living conditions while they are still waiting for public rental housing.”

The bureau explained that compared to the similar design of transitional housing, the average unit cost of a low-rise LPH block of around three storeys is about $530,000 in money-of-the-day prices, which is similar to the $550,000 subsidy for each transitional housing unit.

For high-rise blocks of around 17 to 19 storeys, the average unit cost is about $650,000, it added.

Separately, Ms Ho earlier led a group of subdivided unit tenants to visit the LPH mock-up unit. In addition to being thrilled by the project, the group expressed that they are looking forward to improving their living conditions as soon as possible.

(The source: news.gov.hk)

105k private flats projected

2023-01-27

The projected private flat supply for the next three to four years is 105,000 units, 10,000 more than the previous estimate.

The Housing Bureau today said there were 16,000 unsold units in completed projects at the end of December 2022.

There were also 66,000 units under construction, excluding those pre-sold by developers, and 23,000 units disposed sites where construction may start any time.

The number of flats under construction in the fourth quarter was 5,400, while 4,600 units were completed during the period.

The total number of private residential units completed last year was 21,200, up 47% compared with the figure in 2021.

(The source: news.gov.hk)

Financial stability a priority: FS

2023-01-11

Financial Secretary Paul Chan said the Government places high priority on financial stability so that Hong Kong can stay strong amid external uncertainties.

At the Asian Financial Forum today, he told reporters that external demand is weak and the financial market is volatile due to factors such as interest rate hikes, continued tightening of monetary conditions by central banks and an unfavourable economic situation in developed economies like the European Union.

On the other hand, Mr Chan noted that the Mainland’s economic recovery is going to be stronger than expected.

“We expect the Mainland’s economic recovery will be pretty strong, particularly in the second half of the year, and this will provide strong support to Hong Kong and also cushion some of the external headwinds.”

Locally in Hong Kong, he pointed out there is a more optimistic business sentiment with the resumption of normal travel to and the Mainland.

Private consumptionprivate sector capital investment will have stronger support than last year, Mr Chan said.

“Overall, we do think that we should be more optimistic in terms of the economic outlook for 2023,” the finance chief added.

(The source: news.gov.hk)

No change to housing measures

2023-01-11

Secretary for Housing Winnie Ho today said the Government considers that the current development of the local property market is an orderly adjustment and it does not see the need to adjust the relevant management measures at the moment.

Answering lawmakers’ questions, Ms Ho said the prevailing demand-side management measures for residential properties, including the Special Stamp Duty (SSD), Buyer's Stamp Duty (BSD) and New Residential Stamp Duty (NRSD) have been effective since their introduction.

She noted that the number of short-term resale transactions accounted for 0.9% of the total transactions January to November 2022, which was substantially lower than the 20% before the introduction of the SSD.

During the same period, the number of residential property transactions involving non-local individuals and non-local companies stayed low at 0.5% of the total transactions.

Ms Ho pointed out these figures illustrate that the demand-side management measures have been effective in reducing short-term speculative activities as well as external and investment demands and have served the Government's objectives including according priority to the home ownership needs of Hong Kong permanent residents.

She explained that the overall private residential price index in November 2022 remained at a high level despite its retreat in comparison to that at the beginning of 2022.

Meanwhile, the mortgage-to-income ratio, ie the home purchase affordability ratio, remained at an elevated level of 73% in the third quarter of 2022, which was significantly above the long-term average of 49% over the 20-year period 2002 to 2021.

Ms Ho said such figure indicated that the overall residential property prices are still at a level beyond the general public's affordability.

If the demand-side management measures are abolished hastily without suitable conditions, such a move could be subject to market speculation and may stimulate demand for, and even short-term speculation of, local residential properties by some people, she added.

(The source: news.gov.hk)

11 pre-sale consents issued

2023-01-06

The Lands Department issued 11 pre-sale consents for residential developments in the fourth quarter.

They were issued for seven residential developments, involving 4,784 residential units.

Five developments in Kai Tak, Kwun Tong and Ho Man Tin comprising a total of 3,350 residential units are expected to be completed next year. Two developments in Yau Tong and Wong Chuk Hang consisting of 1,434 residential units are expected to be done in 2025.

At the end of last month, 46 applications for pre-sale consent for residential developments with a total of 21,568 residential units and five applications for pre-sale consent for non-residential developments were being processed.

In addition, the department is handling five applications for consent to assign involving a total of 3,569 residential units and three non-residential units.

(The source: news.gov.hk)

Property sales down for 2022

2023-01-05

The Land Registry received 59,619 sale and purchase agreements for all building units in 2022, down 38% year-on-year and 18.7% less compared with 2020.

The total consideration for these agreements for 2022 was $554.46 billion, down 39.6% year-on-year and an 11.8% drop compared with 2020.

The number of assignments of building units for 2022 was 85,976, down 26.8% on the previous year and 3.4% lower than 2020.

The total consideration for these assignments was $691.35 billion, down 25.2% compared with 2021 but 5.1% more than 2020.

There were 4,878,773 land register searches made last year.

(The source: new.gov.hk)

Property sales down 4%

2023-01-04

The Land Registry recorded 3,565 sale and purchase agreements for all building units received for registration in December, down 4% compared with November and 49.6% lower year-on-year.

The total consideration for such agreements fell 14.4% November to $25.9 billion in December, while a 70.5% year-on-year decrease was recorded.

Of the agreements, 2,507 were for residential units, down 8.2% November and 51.3% lower than a year ago.

The total consideration of residential units was $21 billion, a decrease of 18.6% compared with November and down 56.6% December last year.

There were 323,100 land register searches last month.

(The source: gov.com.hk)

Property sales down 8.1%

2022-11-02

The Land Registry recorded 4,443 sale and purchase agreements for all building units received for registration in October, down 8.1% compared with September and 28.9% lower year-on-year.

The total consideration for such agreements fell 5.8% September to $32.8 billion in October while a 46.6% year-on-year decrease was recorded.

Of the agreements, 3,148 were for residential units, down 18.8% September and 32.2% lower than a year ago.

The total consideration of residential units was $27.2 billion, a decrease of 6.6% compared with September and down 45.3% October last year.

There were 423,712 land register searches last month.

(The source: news.gov.hk)

Housing supply target reviewed

2022-10-31

The Government’s 10-year housing supply target will remain unchanged at 430,000 units, while the public to private flat ratio of 70:30 will also stay the same.

The Government released the Long Term Housing Strategy Annual Progress Report 2022 today, noting that the public to private split of 70:30 for the next 10-year period 2023-24 to 2032-33 will be maintained.

According to this ratio, the public housing supply target will be 301,000 units, comprising 210,000 units for public rental housing unitsGreen Form Subsidised Home Ownership Scheme flats, and 91,000 units for other subsidised sale flats.

As announced in the 2022 Policy Address, the Government has identified sufficient land for providing about 360,000 public housing units in the coming 10-year period, an increase of about 30,000 units over the previous 10-year period, which can meet the estimated public housing demand of 301,000 units.

Such supply mainly comes New Development Areas and major development projects, site rezoning, and other projects including development of brownfield clusters, redevelopment of the Housing Authority's factory estates and part of the Siu Ho Wan Depot site topside development.

As for private housing, the Government will continue to spare no efforts in creating sufficient land to meet the private housing supply target of 129,000 units for the next 10-year period.

In particular, the Government will get sufficient land ready for providing no less than 72,000 units in the coming five years through land sales and railway property developments.

Together with development projects undertaken by the Urban Renewal Authority and other private land development projects, the private housing supply target should be able to be met under the Long Term Housing Strategy.

(The source: news.gov.hk)

Government to sell site in Kennedy Town by public tender

2022-10-30

The Lands Department (LandsD) announced today (September 30) that a site, Inland Lot No. 9069 at Sai Ning Street and Victoria Road, Kennedy Town, Hong Kong, in the 2022-23 Land Sale Programme, will be disposed of by public tender. The tender invitation for the lot will commence on October 7 and close on November 4.

Inland Lot No. 9069 has a site area of about 537 square metres and is designated for non-industrial (excluding godown, hotel and petrol filling station) purposes. The minimum gross floor area is 2 578 sq m. The maximum gross floor area for private residential purposes that may be attained is 4 296 sq m. The maximum gross floor area for non-industrial (excluding private residential, godown, hotel and petrol filling station) purposes is computed according to the relevant special condition in the Conditions of Sale.

Land sale documents including the Form of Tender, the Tender Notice, the Conditions of Sale and the sale plan of the lot will be available for downloading the LandsD website (www.landsd.gov.hk) October 7, while the sale plan will be available for inspection by the public the same day until the close of the tender. The sale plan in hard copy form may also be purchased at the Survey and Mapping Office of the LandsD, 23/F, North Point Government Offices, 333 Java Road, North Point, Hong Kong, October 7 until the close of the tender. The particulars of the tender will be gazetted on October 7.

(The source: info.gov.com)

Mortgage loans down 22.1%

2022-08-31

Residential mortgage loans approved in July decreased 22.1% compared with June to $40.1 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions rose 3.3% to $7.4 billion, while those financing secondary market transactions dropped 30.3% to $21.7 billion.

Those for refinancing fell 16.5% to $11 billion.

Mortgage loans drawn down during the month increased 4.3% to $30.8 billion.

The number of mortgage applications in July stood at 9,497, a month-on-month drop of 13.2%.

The outstanding value of mortgage loans increased 0.5% to $1.7834 trillion at the end of July.

(The source: news.gov.hk)

Thirty-four building plans approved in May

2022-07-19

The Buildings Department approved 34 building plans in May, with 15 on Hong Kong Island, six in Kowloon and 13 in the New Territories.

     Of the approved plans, 25 were for apartment and apartment/commercial developments, two were for commercial developments, two were for factory and industrial developments, and five were for community services developments.

     In the same month, consent was given for works to start on 12 building projects which, when completed, will provide 195 206 square metres of gross floor area for domestic use involving 3 695 units, and 43 472 sq m of gross floor area for non-domestic use. The department has received notification of commencement of superstructure works for seven building projects.

     The department also issued 23 occupation permits, with five on Hong Kong Island, three in Kowloon and 15 in the New Territories.

     Of the buildings certified for occupation, the gross floor area for domestic use was 120 735 sq m involving 1 183 units, and 60 353 sq m was for non-domestic use.

     The declared cost of new buildings completed in May totalled about $9.7 billion.

     In addition, nine demolition consents involving nine building structures were issued.

     The department received 2 557 reports about unauthorised building works (UBWs) in May and issued 1 424 removal orders on UBWs.

(The source: news.gov.com.hk)

Property sales up 63.8%

2022-06-02

The Land Registry recorded 7,949 sale and purchase agreements for all building units received for registration in May, up 63.8% from April but 11.3% lower year-on-year.

The total consideration for such agreements rose 84.3% from April to $77 billion in May, but a 12.1% year-on-year decrease was recorded.

Of the agreements, 6,202 were for residential units, up 59.1% from April but 12.5% lower than a year ago.

The total consideration of residential units was $58 billion, an increase of 65.1% compared with April but down 24.5% from May last year.

There were 475,130 land register searches last month.

(The source: news.gov.hk)

13 building plans approved in March

2022-05-17

The Buildings Department approved 13 building plans in March - two on Hong Kong Island, eight in Kowloon and three in the New Territories.

Of the approved plans, six were for apartment and apartment-commercial developments, two were for commercial developments, two were for factory and industrial developments, and three were for community services developments.

Consent was given for works to start on 14 building projects which will provide 134,762 sq m of gross floor area for domestic use involving 2,160 units and 11,793 sq m of gross floor area for non-domestic use.

The department also issued 18 occupation permits - two on Hong Kong Island, eight in Kowloon and eight in the New Territories.

Buildings certified for occupation have 39,108 sq m of gross floor area for domestic use involving 771 units and 59,794 sq m was for non-domestic use.

(The source: news.gov.hk)

Tax deduction bill to be gazetted

2022-05-04

The Inland Revenue (Amendment) (Tax Deductions for Domestic Rents) Bill 2022 will be gazetted on May 6 and introduced into the Legislative Council on May 11.

The bill seeks to implement the tax deduction for domestic rent proposed in the 2022-23 Budget. The Government hopes to secure the passage of the bill before the council’s summer recess so that the measure could be implemented from the 2022-23 year of assessment.

It is expected to benefit about 430,000 taxpayers. The government revenue forgone will amount to about $3.3 billion per year.

A taxpayer liable to salaries taxtax under personal assessment may claim a deduction for the rent paid by themtheir spouses as tenantsco-tenants in relation to the relevant year of assessment for renting eligible domestic premises. The maximum amount of allowable deduction is $100,000 for each assessment year.

The premises concerned must be the taxpayer's principal place of residence, and the relevant tenancy must be stamped.

Eligible taxpayers can provide information about the expected domestic rent paid in relation to 2022-23 in the tax returns for the 2021-22 year of assessment to be issued this June.

Upon passage of the bill, the Inland Revenue Department will take into account the deduction when assessing the provisional salaries tax for 2022-23.

(The source: news.gov.hk)

Property sales dip 32.4%

2022-03-02

The Land Registry recorded 3,998 sale and purchase agreements for all building units received for registration in February, down 32.4% from January and 47.1% lower year-on-year.

The total consideration for such agreements dropped 33.7% from January to $36.1 billion in February this year, and a 43.9% year-on-year decrease was recorded.

Of the agreements, 2,912 were for residential units, down 31.9% from January and 52.5% lower than a year ago.

The total consideration of residential units was $29.5 billion, a decrease of 32.1% compared with January and a drop of 48.2% from January 2021.

There were 291,830 land register searches last month.

(The source: news.gov.hk)

Land sale plan unveiled

2022-02-24

The Government today announced its 2022-23 Land Sale Programme which includes 13 residential sites involving about 8,250 flats to be put up for sale.

Unveiling the programme at a press conference this afternoon, Secretary for Development Michael Wong said four residential sites are on Hong Kong Island, two are in Kowloon and seven are in the New Territories.

There will be three railway property development projects - two in Tung Chung and one in Siu Ho Wan Depot, which can provide about 4,580 flats.

Meanwhile, the Urban Renewal Authority (URA) plans to take forward three projects in Sai Ying Pun and To Kwa Wan, providing about 910 flats.

Including those provided by private developmentredevelopment projects, the total potential private housing land supply in the year will yield an estimated 17,940 units.

Regarding commercial land, the Government will sell four sites in Kowloon, providing about 296,800 sq m of gross floor area.

The development chief also announced that the minimum flat size requirement will be extended to cover all government land sale, railway property development projects, URA projects as well as lease modification and land exchange applications by private developers. Each flat should reach at least 26 sq m in saleable area.

For projects involving lease modifications and land exchanges, such a requirement will be applicable to new applications received by the Lands Department from February 25 onwards.

Mr Wong said: “If you look at the supply of - if I may use the term 'nano flats' - in our market, the majority of them did not come from government land sales. The majority of them came from redevelopment.

“So we have looked at the situation and we think this proposal is reasonable.”

However, projects which have already obtained the Town Planning Board's planning permission will be exempted from the new rule, he added.

(The source: news.gov.hk)

Subsidised flats to go on sale

2022-01-06

The Housing Authority today announced that a total of 8,926 new Home Ownership Scheme flats will be put up for sale under the Sale of Home Ownership Scheme Flats 2022 (HOS 2022).

They cover seven new developments in Yu Nga Court in Tung Chung, Yu Tak Court in Sha Tin, Kei Wah Court in North Point, Kwun Shan Court in Ma Tau Kok, On Sau Court in Kwun Tong, Chiu Ming Court in Tseung Kwan O, and Kai Yan Court in Kai Tak.

The average selling prices of the new flats for sale are provisionally set at a 49% discount from the assessed market values51% of assessed market values.

The provisional selling prices of the flats at the seven new developments range from $1.24 million to $5.31 million, averaging at about $2.58 million.

The authority also announced the arrangements for the White Form Secondary Market Scheme 2022 (WSM 2022). The quota for the scheme will be maintained at 4,500 and the allocation ratio for family and one-person applicants at 9:1.

It is expected that applications for both schemes will be invited in the first quarter, with balloting in the second quarter. Flat selection for HOS 2022 and the issuance of Approval Letters to eligible applicants under WSM 2022 are expected to start from the fourth quarter.

Additionally, a total of 4,693 flats will be offered for sale under the Sale of Green Form Subsidised Home Ownership Scheme Flats 2022 (GSH 2022), from Ching Tao Court in Fanling, Ko Wang Court in Yau Tong, and Kam Pak Court in Ma On Shan.

The average selling prices of these flats are provisionally set at a 59% discount from the assessed market values.

The provisional selling prices range from about $0.79 million to $2.86 million.

The authority expects to invite applications for GSH 2022 in the third quarter to the fourth quarter, with balloting in the fourth quarter and flat selection starting in late 2022early 2023.

(The source: news.gov.hk)

Property sales up for whole of 2021

2022-01-05

The Land Registry received 96,133 sale and purchase agreements for all building units in 2021, up 31.1% year-on-year and 28.5% more compared with 2019.

The total consideration for these agreements for 2021 was $917.84 billion, up 46.1% year-on-year and a 32.6% up compared with 2019.

The number of assignments of building units for 2021 was 117,459, up 32% on the previous year and 27.8% higher than 2019.

The total consideration for these assignments was $924.84 billion, up 40.5% compared with 2020 and 20.9% more than 2019.

There were 5,787,755 land register searches made last year.

(The source: news.gov.hk)

Property sales down 2.3%

2022-01-04

The Land Registry recorded 7,076 sale and purchase agreements for all building units received for registration in December, down 2.3% from November and 6.8% lower year-on-year.

The total consideration for such agreements rose 39.4% from November to $87.8 billion in December, and 24.9% year-on-year increase was recorded.

Of the agreements, 5,145 were for residential units, down 4.9% from November and 15.2% lower than a year ago.

The total consideration of residential units was $48.5 billion, a decrease of 5.4% compared with November and down 17.4% from December 2020.

There were 436,325 land register searches last month.

(The source: news.gov.hk)

Property sales up 15.8%

2021-12-02

The Land Registry recorded 7,239 sale and purchase agreements for all building units received for registration in November, up 15.8% from October but 0.03% lower year-on-year.

The total consideration for such agreements rose 2.7% from October to $63 billion in November, but a 4.5% year-on-year decrease was recorded.

Of the agreements, 5,409 were for residential units, up 16.5% from October but 10.9% lower than a year ago.

The total consideration of residential units was $51.3 billion, an increase of 3.2% compared with October but down 11.7% from November 2020.

There were 470,442 land register searches last month.

(The source: news.gov.hk)

17 building plans approved in Sept

2021-11-23

The Buildings Department approved 17 building plans in September - six on Hong Kong Island, one in Kowloon and 10 in the New Territories.

Of the approved plans, nine were for apartment and apartment-commercial developments, one was for commercial development, five were for factory and industrial developments and two were for community services developments.

Consent was given for works to start on 12 building projects which will provide 180,439 sq m of gross floor area for domestic use involving 3,129 units, and 23,933 sq m of gross floor area for non-domestic use.

The department also issued 24 occupation permits - six on Hong Kong Island, seven in Kowloon and 11 in the New Territories.

Buildings certified for occupation have 28,016 sq m of gross floor area for domestic use involving 603 units, and 41,871 sq m for non-domestic use.

(The source: news.gov.hk)

Mortgage scheme to permanently run

2021-10-29

The Mortgage Corporation today announced that the Fixed-rate Mortgage Scheme will be converted into a permanent product starting November 1.

The current fixed interest rates per annum under the scheme for 10, 15 and 20 years are 1.99%, 2.09% and 2.19%. They will be maintained until end-January 2022.

As from February 2022, the corporation will determine the fixed interest rates per annum from time to time in accordance with factors such as its cost of funds, business risks and market conditions. The rates will be announced monthly.

Financial Secretary Paul Chan said the scheme has approved loans totalling around $400 million in the past year and a half, reflecting a certain market demand for fixed-rate mortgage products.

“The scheme has filled a market gap, and its permanent offer will continue to provide an alternative financing option to homebuyers for mitigating their risks arising from interest rate volatility, thereby enhancing banking stability in the long run."

Under the Fixed-rate Mortgage Scheme, the maximum loan amount of each residential mortgage is $10 million. At the end of the fixed-rate period, the borrower may either re-fix the mortgage rate under the fixed-rate mortgagesconvert the mortgage to a floating rate loan.

As the borrowers will be insulated from interest rate movements under the fixed-rate period which is 10 yearslonger, an agreement has been obtained from the Monetary Authority that they will not be required to meet the stress testing against interest rate rise, but the current debt-to-income ratio will still be applicable.

(The source: news.gov.hk)

Mortgage loans dip 2.6%

2021-10-29

Residential mortgage loans approved in September decreased 2.6% compared with August to $52.9 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions rose 21.4% to $9.1 billion, while those financing secondary market transactions fell 9.8% to $32.7 billion.

Those for refinancing increased 5.1% to $11.1 billion.

Mortgage loans drawn down during the month rose 1.7% to $40.3 billion.

The number of mortgage applications in September decreased month-on-month by 4.3% to 13,327.

The outstanding value of mortgage loans increased month-on-month by 1% to $1.697 trillion at the end of September.

(The source: news.gov.hk)

Property sales dip 6%

2021-10-05

The Land Registry recorded 7,400 sale and purchase agreements for all building units received for registration in September, down 6% from August but 12.4% higher year-on-year.

The total consideration for such agreements dipped 5.2% from August to $66.8 billion in August, but a 30.1% year-on-year increase was recorded.

Of the agreements, 5,844 were for residential units, up 5.4% from August and up 16.3% compared with a year ago.

The total consideration of residential units was $56.1 billion, a rise of 2.9% compared with August and an increase of 29.1% from September 2020.

There were 489,429 land register searches last month.

(The source: news.gov.hk)

Property sales up 6.1%

2021-08-03

The Land Registry recorded 9,957 sale and purchase agreements for all building units received for registration in July, up 6.1% from June and 31.4% higher year-on-year.

The total consideration for such agreements rose 1.5% from June to $94 billion in July, representing a 35.6% year-on-year increase.

Of the agreements, 7,579 were for residential units, down 0.2% from June and 23.6% higher than a year ago.

The total consideration of residential units was $78.6 billion, a drop of 2.8% compared with June and up 32.1% from June 2020.

There were 530,252 land register searches last month.

(The source: news.gov.hk)

Mortgage loans up 11.6%

2021-06-30

Residential mortgage loans approved in May increased 11.6% compared with April to $56.7 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions dropped 4.9% to $7.2 billion, while those financing secondary market transactions rose 11.2% to $40.6 billion.

Those for refinancing increased 32.9% to $8.8 billion.

Mortgage loans drawn down during the month rose 21.1% to $35.7 billion.

The number of mortgage applications in May decreased month-on-month by 4% to 15,904.

The outstanding value of mortgage loans increased month-on-month by 1% to $1.631 trillion at the end of May.

(The source: news.gov.hk)

16 building plans approved

2021-06-22

The Buildings Department approved 16 building plans in April – four on Hong Kong Island, five in Kowloon and seven in the New Territories.

Of the approved plans, seven were for apartment and apartment-commercial developments, two were for factory and industrial developments, and seven were for community services developments.

Consent was also given for work to start on 11 building projects which will provide 13,704 sq m of gross floor area for domestic use involving 196 units, and 140,034 sq m of gross floor area for non-domestic use.

The department also issued 15 occupation permits – three on Hong Kong Island, six in Kowloon and six in the New Territories.

Buildings certified for occupation have 123,833 sq m of gross floor area for domestic use involving 1,973 units, and 55,111 sq m for non-domestic use.

(The source: news.gov.hk)

Property sales down 2%

2021-06-02

The Land Registry recorded 8,965 sale and purchase agreements for all building units received for registration in May, down 2% from April and 30.2% higher year-on-year.

The total consideration for such agreements rose 2.9% from April to $87.6 billion in May, representing a 45.4% year-on-year increase.

Of the agreements, 7,084 were for residential units, down 3.3% from April and 18.4% higher than a year ago.

The total consideration of residential units was $76.8 billion, a rise of 7.4% compared with April and up 45.7% from May 2020.

There were 515,805 land register searches last month.

(The source: news.gov.hk)

Application for Sale of Green Form Subsidised Home Ownership Scheme Flats 2020/21 to commence

2021-05-20

The Hong Kong Housing Authority (HA) announced today (May 20) that eligible Green Form applicants, including sitting tenants of Tenants Purchase Scheme (TPS) estates, who intend to purchase Green Form Subsidised Home Ownership Scheme (GSH) flatsrecovered flats from TPS estates under the Sale of Green Form Subsidised Home Ownership Scheme Flats 2020/21 (GSH 2020/21) may submit applications from May 28 to June 10. The application fee for GSH 2020/21 will be frozen at $250.

The application form, the application guide and the sales booklet for Kai Chuen Court under GSH 2020/21 as well as sales leaflets for other unsold/rescinded GSH flats and recovered TPS flats, detailing sales arrangements and basic information of the developments/estates, will be available to the public for collection from tomorrow (May 21).

The above documents can be obtained during office hours from the HA GSH Sales Office, the HA Customer Service Centre (HACSC) in Lok Fu, the estate offices and District Tenancy Management Offices of the HA, rental estate offices of the Hong Kong Housing Society (HS) and the Home Affairs Enquiry Centres of the Home Affairs Department. Soft copies of the above documents are available from the designated website of the HA/Housing Department (HD) (www.housingauthority.gov.hk/gsh/2020-21) for viewing and downloading.

Flats for sale

Kai Chuen Court in Diamond Hill, a new GSH development, will provide 2,112 flats with saleable areas of about 17.1 square metres to about 44.7 sq m (about 184 square feet to about 481 sq ft).

A total of 525 unsold/rescinded flats as at March 31 and any additional rescinded flats from Dip Tsui Court in Chai Wan and Ching Fu Court in Tsing Yi under GSH 2019, as identified up to about two months before commencement of flat selection, will be included for resale in this sale exercise.

About 800 recovered TPS flats will also be put up for sale in this sale exercise. Eligible applicants will be invited to choose to buy a GSH flata recovered TPS flat according to their priority for flat selection and subject to availability of flats.

Price

By applying a discount of 50 per cent from the assessed market values, the selling prices of the flats at Kai Chuen Court range from about $1.18 million to about $3.85 million. The average selling price of Kai Chuen Court is $79,500 per sq m (i.e. $7,390 per sq ft) on a saleable area basis.

The selling prices of the unsold/rescinded GSH flats for resale are set at the same discount of this sale exercise, i.e. a discount of 50 per cent from the assessed market values.

The existing pricing mechanism for the sale of TPS flats to sitting tenants will be adopted for the sale of recovered TPS flats to Green Form applicants. As at January 2021, the list prices of all unsold TPS flats in the 39 TPS estates ranged from about $140,000 to $1,260,000. The final prices will depend on the flats that will be put up for sale in this exercise.

Application arrangements

Applicants may either submit online applicationspaper-based applications by postby hand. Each person can only be listed in one application form for this sale exercise, whether the application is made onlinepaper-based; otherwise, the applications will be regarded as duplicates. Making duplicate applications will render all applications null and void irrespective of the reasons for the duplication, and the application fee paid will not be refundedtransferred. Details are set out in the application guides.

"For online applications from sitting tenants of public rental housing (PRH) estates of the HArental estates of the HS, their respective estate offices will contact them to verify their household information after receiving their online applications. The estate offices concerned will prepare hard copies of the application forms and the applicants and all family members aged 18above will have to sign and return the application forms to their respective estate offices for further processing," the spokesman said.

"The closing time for receiving applications, whether onlinepaper-based, is 7pm on June 10, 2021. Applications submitted beforeafter the application period will not be accepted. Applicants who are tenants of PRH estates of the HArental estates of the HS are required to return their paper-based applications to their respective estate offices. Other applicants may submit their paper-based applications by postby hand to the GSH Sales Office at 1/F, Pioneer Place, 33 Hoi Yuen Road, Kwun Tong. The Home Ownership Scheme Sales Unit at the HACSC in Lok Fu will not accept GSH applications," the spokesman said.

"It is expected that balloting for GSH 2020/21 will be held in JulyAugust this year, and eligible applicants will be invited to select flats starting from SeptemberOctober this year according to their priority order of the application category," the spokesman said.

Carry-over application arrangements

"Valid Green Form applicants of the Sale of Home Ownership Scheme Flats 2020 (HOS 2020) who have indicated their consent to carry over their applications to the next Subsidised Sale Flats sale exercise of the HA will be included automatically in this sale exercise provided that they meet the eligibility criteria of this sale exercise. These applicants do not need to submit separate applications nor pay the application fee for GSH 2020/21. The HA has notified these applicants in writing that their HOS 2020 applications have been carried over to GSH 2020/21 as well as their application numbers under GSH 2020/21 before the application period. For online application, such notification has been sent to the applicants by email. If an applicant submits another GSH 2020/21 application, it will be regarded as a duplication of application. Making duplicate applications will render all applications null and void irrespective of the reasons for the duplication, and the application fee paid will not be refundedtransferred," the spokesman said.

"If an applicant wishes to apply in a household category different from that for HOS 2020 which may affect hisher priority for flat selection, heshe is required to inform the HA during the application period of GSH 2020/21. Moreover, for applicants who have successfully purchased a flat under HOS 2020, their carry-over applications for this sale exercise will be cancelled immediately," the spokesman added.

Publicity

Doll houses and virtual videos of typical flats and a building model of Kai Chuen Court, exhibition panels and other information on the GSH developments of unsold/rescinded GSH flats, as well as the photos of the interior of samples of recovered TPS flats and exhibition panels and other information on TPS estates, will be provided for public inspection at the GSH Sales Office in Kwun Tong from 8am to 7pm every day between May 21 and June 10. Related information will be uploaded to the HA/HD's designated website (www.housingauthority.gov.hk/gsh/2020-21).

Sales brochures for new and unsold/rescinded GSH flats as well as sales pamphlets for recovered TPS flats, providing greater details of the developments and estates, and price lists will be available for public collection and viewing on the HA/HD's designated websites at least seven days before commencement of the flat selection period. During the flat selection period, photos and video clips of the interiors of all recovered TPS flats for sale will be provided at the GSH Sales Office and the HA/HD's designated website (www.housingauthority.gov.hk/gsh/2020-21).

Enquiries

Members of the public can call the 24-hour HA Sales Hotline on 2712 8000 on matters concerning application for the GSH 2020/21 sale exercise.

(The source: info.gov.hk)

Hong Kong home prices will rise this year as economy rebounds and jobless rate declines, S&P Global says

2021-05-05

Hong Kong’s residential prices will rise by as much as 5 per cent this year, US rating agency S&P Global Ratings said on Wednesday.

The agency said buoyant housing demand, a chronic shortage of land and housing supply, as well as a consistently low interest rate environment will support price rises. It joins a chorus of industry observers, which has forecast that Hong Kong residential prices will rise this year.

“During the past two decades, Hong Kong property prices have tended to bottom out when the jobless rate hasis about to peak. This will underpin developers’ residential development margins,” S&P Global said. It said that Hong Kong’s unemployment rate seems to have come off a peak of 7.2 per cent in February to 6.8 per cent in March, while its economy grew by 7.8 per cent in the first quarter.

These developments will, ironically, hurt many Hongkongers’ hopes of owning their own homes, as a revival in the city’s economy and falling unemployment could lift flat prices in the world’s most expensive real estate market.

(The source: South China Morning Post)

Property sales up 0.9%

2021-05-04

The Land Registry recorded 9,150 sale and purchase agreements for all building units received for registration in April, up 0.9% from March and 88% higher year-on-year.

The total consideration for such agreements rose 9.1% from March to $85.1 billion, representing a 122% year-on-year increase.

Of the agreements, 7,325 were for residential units in April, down 1.6% from March and 78.6% higher than a year ago.

The total consideration of residential units was $71.6 billion, a rise of 3.2% compared with March and up 112.1% from April 2020.

There were 485,937 land register searches last month.

(The Source: news.gov.hk)

Mortgage loans up 39%

2021-04-30

Residential mortgage loans approved in March increased 39% compared with February to $53 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions rose 86.5% to $9.7 billion, while those financing secondary market transactions increased 31.5% to $36.2 billion.

Those for refinancing rose 31.7% to $7.1 billion.

Mortgage loans drawn down during the month increased 56.3% to $30.2 billion.

The number of mortgage applications in March increased month-on-month by 44.1% to 17,946.

The outstanding value of mortgage loans increased month-on-month by 0.6% to $1.6053 trillion at the end of March.

(The source: news.gov.hk)

Task Force for the Study on Tenancy Control of Subdivided Units submits report to the Government

2021-03-31

The Task Force for the Study on Tenancy Control of Subdivided Units (Task Force) submitted its report to the Government today (March 31), setting out the current situation of subdivided units (SDUs) in Hong Kong and providing views and recommendations to the Government on whether tenancy control on SDUs should be introduced in Hong Kong and the possible options. The Government would carefully consider the recommendations put forward by the Task Force, and introduce the relevant bill into the Legislative Council as soon as possible within the current legislative session.

     The Secretary for Transport and Housing, Mr Frank Chan Fan, thanked the Task Force, under the chairmanship of Professor William Leung, for conducting a comprehensive, in-depth and professional study on the issues relating to tenancy control on SDUs in Hong Kong, and for advancing the completion of the study and submission of the report to the Government by three months in view of the public's concerns about the subject.

     The Government noted that the Task Force considered in principle that the Government should implement suitable tenancy control on SDUs in order to safeguard the interests of SDU tenants, and recommends that the tenancy control measures on SDUs be effected through legislation. The tenancy control measures recommended by the Task Force included:

     (a) formulate a "standard tenancy agreement" with mandatory terms, such as the term of a regulated tenancy shall be fixed for two years, and only the tenant shall have the right to terminate the tenancy agreement after 12 months into the tenancy by giving one month's notice to the landlord; the tenant shall not be liable to make payment to the landlord other than the rent, deposit and reimbursement of utility charges as apportioned by the landlord; the total of the utility charges (including electricity and water charges) payable by all tenants of the unit shall not exceed the amount charged in the relevant utility bill; the deposit shall be refunded to the tenant by the landlord within a specified period; and the landlord shall be responsible for the stamp duty of the tenancy agreement;

     (b) if the SDU landlord and tenant have not entered into a written tenancy agreement at the outset, the tenant shall have a right to demand the landlord to provide a written tenancy agreement within a specified period. If the landlord fails to do so, the tenant can withhold the payment of the rent of one monthof a longer period until the landlord has fulfilled this requirement;

     (c) as a deterrent, a landlord of a regulated tenancy may commit an offence and be subject to penalties if he requests the tenant to make payments other than for the rent, deposit and utility charges as apportioned by the landlord,requests reimbursement of utility charges from the tenant where the total of apportioned utility charges for all tenants of the unit exceeds the amount charged in the relevant bill;

     (d) on security of tenure, the tenant of a regulated tenancy shall have the right to renew the tenancy once, thus enjoying four years of security of tenure;

     (e) on tenancy renewal, there shall be a cap on the rate of rent increase, which shall not be more than the percentage change of the private domestic rental index (all classes) of the Rating and Valuation Department (RVD) in the relevant period;15 per cent, whichever is the lower. If the relevant change of the above RVD rental index is negative, the rent of the renewed regulated tenancy shall be decreased by at least the same percentage; and

     (f) to address the issue of subletting, the head lessor, when terminating the head lease and regaining possession of the premises, shall be obliged to provide the affected SDU tenants a sufficiently long notice period (such as 60 days) to enable them to look for alternative accommodation.

     The Government further noted that to ensure that the proposed tenancy control measures would be effectively administered, the Task Force recommended that the Government should increase resources for the RVD to promote public awareness of the new regulatory regime, provide related advisory and mediatory services, collect and publish information about SDU rentals, and take enforcement action. Resources should also be enhanced for the Lands Tribunal and relevant courts to expedite the processing of relevant disputes arising from the implementation of the proposed tenancy control measures. The Task Force further suggested that the Government may consider entrusting a non-governmental organisation to set up and run an SDU rental information portal, to arrange briefing sessions at the district level, and to provide the necessary support for SDU landlords and tenants.

    The THB set up the Task Force on April 16, 2020. Since its establishment, the Task Force has held a series of meetings and appointed independent scholars/institutions to conduct thematic researches on the social, economic and legal issues involved and to carry out a survey on the actual situation of SDUs and the socio-economic characteristics of SDU tenants. Despite the COVID-19 pandemic, Task Force members have paid visits to SDU tenants in various districts, and held a number of online meetings with a total of 36 concern groups and organised two public forums to gather the views of stakeholders and members of the public on introducing tenancy control on SDUs in Hong Kong.

     The report of the Task Force has been uploaded to the website of the THB (www.thb.gov.hk/eng/contact/housing/matter_tc.htm).

(The source: info.com.hk)

Rates concession set for tenants

2021-03-22

The Housing Authority today announced it will pass on the rates concession for 2021-22 to its domestic and non-domestic tenants starting from April.

The measure was announced in this year's Budget.

A maximum amount of $2.376 billion will be passed on to domestic tenants, while non-domestic tenants and licensees will receive a maximum of $61.5 million.

The authority said domestic tenants' rates from April 2021 to March 2022 will be waived subject to a cap of $1,500 per quarter in the first two quarters and a cap of $1,000 per quarter in the remaining two quarters for each rateable property.

A pro-rata basis will be used for tenancies that last for less than a month.

The transfer will apply to interim housing licensees and Comprehensive Social Security Assistance recipients.

The rates concession for the authority’s non-domestic properties, excluding car parks, will also be passed on to non-domestic tenantslicensees.

Their monthly rates will be waived subject to a cap of $5,000 per quarter in the first two quarters and a cap of $2,000 per quarter in the remaining two quarters for each rateable non-domestic property.

For the authority's 13 single-operator markets, the operators will pass on the rates concession to their licensees in full.

(The source: news.gov.hk)

Loan enhancements to take effect

2021-03-22

Enhancements to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme will take effect from March 29, HKMC Insurance announced today.

To further alleviate the cash flow pressure of small and medium-sized enterprises, the Financial Secretary announced earlier in the 2021-22 Budget that enhancements will be made to the Special 100% Loan Guarantee. The application period will be extended to December 31.

Under the enhancement measures, eligible enterprises should have been operating for at least three months as at June 30, 2020, and have suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any preceding quarter from early 2019 to mid-2020.

The maximum amount of loan per enterprise will be raised from the total amount of employee wages and rents for 12 months to that for 18 months,$6 million, whichever is lower.

The maximum repayment period of the guaranteed loans will be increased from five years to eight years, and the principal moratorium arrangement will be extended from up to 12 months to up to 18 months.

Call 2536 0392 for enquiries.

(The source: news.gov.hk)

Land premium pilot scheme to launch

2021-03-04

The Development Bureau today announced that it will launch a pilot scheme to charge land premiums at standard rates for lease modifications for industrial building redevelopment on March 15 to encourage revitalisation of such buildings.

The bureau said the pilot scheme aims to provide certainty on land premiums through promulgating a set of standard rates and expediting the completion of lease modification procedures for industrial building redevelopment, adding it will encourage revitalisation of those buildings through facilitating their early transformation into uses more compatible with the needs of society, and thus optimise the use of land.

The pilot scheme targets pre-1987 industrial buildings for revitalisation and will run for two years.

The bureau said those buildings were constructed before the Fire Services Department tightened the fire safety requirements in 1987 and they have relatively less adequate fire service installations and could pose safety risks to users and society.

Promoting the redevelopment of those buildings is a more fundamental way to address the safety problems than enforcementupgrading of installations, it added.

Under the pilot scheme, standard rates, which have been formulated with reference to a basket of relevant market data, are set for five broad regions in Hong Kong and three types of uses involved in lease modifications for industrial buildings, namely industrial/godown use before redevelopment, as well as commercial/modern industrial use and residential use after redevelopment.

The standard rates will remain unchanged for the scheme's two‑year period for greater certainty. During the period, industrial building owners may compute the land premiums payable based on the uses and gross floor areas before and after lease modification by applying the promulgated standard rates, to consider whether to apply for lease modification for redevelopment of their buildings.

The Lands Department will issue a Practice Note on March 15 for industry reference on the pilot scheme’s operational details, including how lease modification applicants may exercise the right to opt for calculating land premiums by standard rates, the transitional arrangement applicable to lease modification cases under processing, and the calculation of gross floor areas.

The bureau stressed that the pilot scheme’s objective is not to provide premium concessions for owners, but to enhance the certainty on land premiums payable to expedite industrial building revitalisation.

Standard rates are not tailor-made for individual cases, and hence cannot precisely reflect the attributes of individual cases, it added.

If lease modification applicants do not find it attractive to have land premiums calculated at standard rates, they may opt to have their cases processed using the existing conventional approach for land premium assessment.

The 2020 Policy Address announced that the Government would implement a pilot scheme for charging premiums at standard rates, as another initiative to encourage revitalisation of industrial buildings following the two rounds of industrial building revitalisation schemes introduced in 2010 and 2018.

As at December 2020, about 60 redevelopment applications had been received under the two rounds of schemes, of which 14 applications completed lease modification and about 40 obtained planning permission.

Additionally, owners of some 150 industrial buildings had applied for wholesale conversion under the schemes, and approvals were given for 140 of the buildings.

(The source: news.gov.hk)

Mortgage loans down 1.7%

2021-02-26

Residential mortgage loans approved in January decreased 1.7% compared with December to $37.8 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions fell 22.5% to $5 billion, while those financing secondary market transactions increased 1.5% to $27.1 billion.

Those for refinancing rose 6.8% to $5.8 billion.

Mortgage loans drawn down during the month dropped 5.9% to $24.9 billion.

The number of mortgage applications in January increased month-on-month by 15.1% to 13,112.

The outstanding value of mortgage loans increased month-on-month by 0.6% to $1.5909 trillion at the end of January.

(The source: news.gov.hk)

Property sales down 18.2%

2021-02-02

.The Land Registry recorded 6,212 sale and purchase agreements for all building units for registration in January, down 18.2% from December and 64.5% higher year-on-year.

The total consideration for such agreements fell 4.9% from December to $66.8 billion, representing a 130.1% year-on-year increase.

Of the agreements, 4,562 were for residential units in January, down 24.8% from December and 65.2% higher than a year ago.

The total consideration for residential units was $39.7 billion, down 32.3% compared with December and up 60.4% from January 2020.

There were 446,139 land register searches last month.

(The source: news.gov.hk)

Living subsidy applications to open

2021-01-31

The Community Care Fund will start accepting applications from two-person households for the One-off Living Subsidy for Low-income Households Not Living in Public Housing & Not Receiving Comprehensive Social Security Assistance (CSSA) Programme tomorrow.

The fund launched the second round of the programme on January 4 to relieve the financial pressure on low-income households.

Beneficiaries should currently be renting accommodation on a monthly basisfor longer tenures in private housing, industrial buildings, commercial buildingssocial housing operated by non-governmental organisations (NGOs).

People renting bedspaces offered under the Home Affairs Department's Singleton Hostel Programmebedspaces in hostels operated by NGOs for rehabilitated offenders, residing in temporary housing as well as those living on board vesselsare homeless can also apply.

They should not be receiving CSSAown any property in Hong Kong and their monthly income must not exceed $22,000.

Their monthly rent for private housing, industrial buildings, commercial buildingssocial housing should not exceed $11,000.

Eligible households that benefited from the first round of the programme which was launched between July 2 and November 30 last year, can also apply for the second round.

The fund will accept applications from three-person households from March 1 and all households from April 1.

Applications can be submitted until May 31.

Call 2180 6666 for enquiries.

(The source: news.gov.hk)

92k flats forecast

2021-01-29

The projected private flat supply for the next three to four years is 92,000 units, unchanged from the previous estimate.

The Transport & Housing Bureau today said there were 12,000 unsold units in completed projects at the end of December last year.

It added there were 57,000 units under construction, excluding those pre-sold by developers, and 23,000 units from disposed sites where construction can start any time.

The number of flats under construction in the fourth quarter of last year was 200, while the number of units completed for the period was 7,200.

(The source: news.gov.hk)

Mortgage loans up 3.4%

2021-01-29

Residential mortgage loans approved in December increased 3.4% compared with November to $38.4 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions rose 5.4% to $6.4 billion, while those financing secondary market transactions increased 0.7% to $26.6 billion.

Those for refinancing increased by 15.8% to $5.4 billion.

Mortgage loans drawn down during the month rose 3.7% to $26.5 billion.

The number of mortgage applications in December increased month-on-month by 0.2% to 11,396.

The outstanding value of mortgage loans increased month-on-month by 0.6% to $ 1.5821 trillion at the end of December.

(The source: news.gov.hk)

Consortium wins development rights to MTR’s Wong Chuk Hang residential project at a lower premium than earlier phase

2021-01-27

A consortium of four Hong Kong developers has won the development rights for the latest residential project at Wong Chuk Hang MTR station, which has been acquired at a lower premium than the previous phase.

Kayson Limited, comprising

New World Development

, Empire Group, Lai Sun Development and CSI Properties, won the tender for the fifth phase of the project at Wong Chuk Hang station on the South Island line, railway operator

MTR Corp

said on Wednesday.

“The pandemic has not affected the developers’ determination to continue buying and investing in land,” said James Cheung, executive director at Centaline Surveyors. “The government has slowed down the pace of land launches [so] high-quality lots along the railway are even rarer.”

Kayson beat Sun Hung Kai Properties, CK Asset, K Wah International and two other consortiums. Notably, the bidders were all local developers.

The premium for the project, which the winner pays the government for the development rights, was set at HK$6.44 billion (US$830.4 million),HK$10,119 per sq ft.

The premium is 4.4 per cent lower than phase four, according to market sources. Bidders, however, had to offer an extra undisclosed amount to compete for the latest project, they added.

The winner will also have to share about 25 per cent of the project’s profits with the MTR.

heung said that as sentiment has been affected by the

fourth wave

of the coronavirus pandemic, the government had adjusted the land premium accordingly to reflect market conditions.

He said that the flats built on the parcel were most likely to be medium-sized units, and could fetch up to HK$30,000 per sq ft.

The plot can yield a gross floor area of as much as 636,152 sq ft, which could accommodate up to 1,050 flats with an average size of around 600 sq ft.

The project, the penultimate one at Wong Chuk Hang station, received just six bids on Tuesday, fewer than the seven to eight expected by the market. The project had attracted 37 expressions of interest, the third-highest for an MTR railway development.

New World Development and CSI Properties have previously participated in the MTR’s property developments at Tai Wai and Yau Tong stations, respectively. New World’s

The Pavilia Farm

project, comprising 3,090 flats spread over many phases above Tai Wai station, has been a hit with homebuyers.

Hong Kong should reintroduce rent controls for subdivided flats, says task force, with some members wanting to limit what landlords can charge

2021-01-26

Rent controls for subdivided flats which were scrapped 17 years ago should be reintroduced and a standard contract imposed as measures to protect poorer families, according to a group looking at regulating the sector

The Post has been told the government-appointed task force was considering two recommendations from its members, including introducing priority renewal rights for tenants of subdivided units, and capping the rent rise on lease renewal at 15 per cent of current rent.

Briefing lawmakers on Monday on the group’s progress, the Transport and Housing Bureau noted the task force, which is expected to submit a final report in March, “had a relatively clear consensus that a standard tenancy agreement for [subdivided homes] should be devised”.

According to the bureau the agreement should, “set out the rights and obligations of both the landlord and the tenant, the term and period of tenancy, rent, notice period for early termination of tenancy, the arrangements concerning electricity and water charges and other miscellaneous charges”.

It continued: “As regards the tenants’ right to renew the tenancy, the task force has to further discuss and deliberate on whether a certain degree of security of tenure should be offered to … tenants and whether some form of regulation should be enforced on the rate of rent increase upon tenancy renewal, et cetera, as well as the possible options.”

A person familiar with the task force’s work said the first option would allow tenants to enter a two-year fixed lease with the landlord – as opposed to one year which is common in the market – during which they could not be evictedleave. On expiry, the tenant would be able to renew their lease under the same terms for another two years.

Another source said fixed lease terms of different lengths were also being considered.

(The source: South China Morning Post)

Govt issues isolation order

2021-01-15

The Director of Health today issued an isolation order for 20, 22, 24 and 26 Reclamation Street, Yau Ma Tei to facilitate contact tracing work there, after a number of COVID-19 cases related to the buildings were reported.

The move aimed to prevent the spread of COVID-19 in the community and safeguard public health.

The department said the Centre for Health Protection's (CHP) contact tracing work on the COVID-19 cases related to the buildings is challenging as there are many subdivided units within the buildings without residents’ lists.

The order facilitates the identification of any remaining residents so they can be quarantined as soon as possible.

Under the order, no person, other than a health officer, shall enterleave the buildings,bring intotake out of the buildings any articles, except with the written permission given by a health officer under section 31 of the Prevention & Control of Disease Regulation.

The isolation order remains effective until 11.59pm on January 28.

With assistance from Police, the CHP has arranged for 90 residents to be placed in quarantine centres. The same efforts will be made for the remaining residents.

The department said taking into consideration the special circumstances surrounding the buildings concerned, it has no choice but to resort to this exceptional measure.

(The source: news.gov.hk)

Inland Revenue responds to law firm case

2021-01-12

The Stamp Office is proactively reaching out to the agent that has intervened into the practice of Messrs Wong, Fung & Co and the affected duty payers to assist them in handling the relevant stamp duty matters.

The Inland Revenue Department made the statement in response to media enquiries regarding property stamp duty issues that may arise from the Law Society of Hong Kong's intervention into the law firm's practice.

The statement said that while the Stamp Office does not have the discretion to extend the time limit for stamping property transaction instruments under the law, if a duty payer's failure to arrange stamping of a property transaction instrument before the time limit is the result of the intervention, the office is prepared to consider remission of penalty for late stamping.

The duty payer can make an application directlythrough the newly engaged solicitor to the Stamp Office, it added.

If the duty payer is unable to raise funds to settle the stamp duty payable within a short period of time due to the freezing of the law firm's relevant bank accounts, an application can be made to the office for instalment payment.

If the property transaction cannot be completed otherwise than by reason of resaledisposal of the property by the purchaser, the relevant agreement for sale is not chargeable with stamp duty. The duty payer can apply for a refund of the stamp duty paid in respect of the relevant agreement within two years after the agreed date of completion of the transaction.

The Stamp Office has informed the Law Society of Hong Kong of these arrangements.

The duty payers can call 2594 3202, fax 2519 9025 or email the office for enquiries.

(The source: news.gov.hk)

Court judgment welcomed

2021-01-12

The Government has welcomed the judgment handed down by the Court of Appeal (CA) today on the appeals against the Court of First Instance (CFI)'s ruling on the judicial review of the Small House Policy.

The CA ruled that the arrangements of Free Building Licence (FBL), Private Treaty Grant (PTG) and Land Exchange under the Small House Policy are lawful traditional rights and interests of the New Territories indigenous inhabitants within the meaning of Article 40 of the Basic Law, and hence lawful and constitutional.

In its response, the Development Bureau said the Government will continue to implement the policy.

Regarding applications for government land to build small houses through PTG and Land Exchange, with the receipt and processing suspended in light of the CFI's judgment, the Government will study the CA's judgment and arrange to resume the receipt and processing of these two types of applications.

The policy has been in place since 1972. The forms of grants under it include FBL which allows applicants to build small houses on their private land, PTG for grant of government land to build small houses, and Land Exchange allowing applicants to build small houses on private landgovernment land.

In its judgment on the judicial review on April 8, 2019 and the subsequent order on April 30 the same year, the CFI ruled that the arrangements to apply for building small houses on private land through FBL and Land Exchange under the policy, being the lawful traditional rights and interests of the New Territories indigenous inhabitants within the meaning of Article 40 of the Basic Law, are lawful and constitutional, while the arrangements to apply for government land for building small houses through PTG and Land Exchange are not.

All the parties lodged appeals and the CA ruled today that the Government's appeal was allowed.

(The source: news.gov.hk)

12 pre-sale consents issued

2021-01-07

The Lands Department issued 12 pre-sale consents for residential and non-residential developments in the fourth quarter of 2020.

They were issued for nine residential developments, involving 4,491 units.

Five developments in Kowloon Tong, Kai Tak, Sha Tin and Tseung Kwan O and two phases of a development in Tuen Mun, comprising a total of 3,203 units, are expected to be completed in 2022.

Three developments in Yau Tong, Kwun Tong and Sha Tin, comprising a total of 1,288 units, are due for completion in 2023.

By the end of December, 22 applications for pre-sale consent for residential developments with a total of 11,446 units and three applications for pre-sale consent for non-residential developments were being processed.

(The source: news.gov.hk)

Property sales down 2%

2021-01-06

The Land Registry received 73,322 sale and purchase agreements for all building units in 2020, down 2% year-on-year and 7.4% lower compared with 2018.

The total consideration for these agreements for 2020 was $628.39 billion, down 9.2% year-on-year and a 15.2% decline on 2018.

The number of assignments of building units was 89,008, down 3.1% on the previous year and 15.5% lower than 2018.

The total consideration for these assignments was $658.03 billion, down 13.9% compared with 2019 and 20.2% less than 2018.

There were 5,012,607 land register searches made last year.

(The source: news.gov.hk)

Property sales up 4.9%

2021-01-05

The Land Registry recorded 7,596 sale and purchase agreements for all building units for registration in December last year, up 4.9% from November and 94.4% higher year-on-year.

The total consideration for such agreements rose 6.6% from November to $70.3 billion, representing a 100.7% year-on-year increase.

Of the agreements, 6,067 were for residential units in December, down 0.05% from November and 90.5% higher than a year ago.

The total consideration for residential units was $58.7 billion, up 1.1% compared with November and 87.9% higher than December 2019.

There were 411,759 land register searches last month.

(The source: news.gov.hk)

Mortgage loans up 7.4%

2020-12-31

Residential mortgage loans approved in November increased 7.4% compared with October to $37.2 billion, the Monetary Authority announced today.

Mortgage loans financing primary market transactions rose 11.7% to $6.1 billion, while those financing secondary market transactions increased 7.5% to $26.5 billion.

Those for refinancing increased by 2% to $4.7 billion.

Mortgage loans drawn down during the month rose 14.7% to $25.5 billion.

The number of mortgage applications in November increased month-on-month by 4.3% to 11,375.

The outstanding value of mortgage loans increased month-on-month by 0.6% to $1.572 trillion at the end of November.

(The Source: news.gov.hk)

430k housing units forecasted

2020-12-16

The Government’s 10-year housing supply target will remain unchanged at 430,000 units, while the public to private flat ratio of 70:30 will also stay the same.

Secretary for Transport & Housing Frank Chan made the statement today when he unveiled the Long Term Housing Strategy Annual Progress Report 2020.

Mr Chan said the supply target is set based on the latest projection of total housing demand.

He noted that balancing the Government’s commitment to increase public housing supply substantially to meet the community’s demand and the demand for private housing, the public to private flat ratio will be maintained at 70:30 for the next 10-year period from 2021-22 to 2030-31.

The public housing supply target for the next 10-year period will be 301,000 units, comprising 210,000 units for public rental housing unitsGreen Form Subsidised Home Ownership Scheme flats, and 91,000 units for other subsidised sale flats.

The private housing supply target for the period will be 129,000 units.

Mr Chan stated the supply of first-hand private residential flats for the coming three to four years is about 92,000 and that the Government will increase the numbers further.

“I must say that this is still one of the highest (supply) in recent years because previously, the number is even less.

“As you can tell from the figures that we published today and in a couple of quarters before this, the total number of public housing and the total number of private housing all stayed at relatively high levels (during) this term of Government.

“Therefore I can assure you that the Government will make the best endeavour to increase the numbers further. Ninety-two thousand is not a small number, bearing in mind (that) a building block only takes in, altogether, a few hundred (households), so 92,000 is indeed a large sum.”

The Government has identified the 330 hectares of land required for providing 316,000 public housing units, 44,000 units more than the figure for the last 10-year period, Mr Chan said.

Such supply mainly comes from New Development Areas and major development projects, a number of sites which have beenwill be rezoned for public housing development and other projects including the partial development of the Fanling Golf Course and a number of brownfield clusters with housing development potential.

Of the 316,000 units, about one-third are scheduled for completion in the first five-year period whereas the other two-thirds fall in the second five-year period, Mr Chan added.

(The source: news.gov.hk)

Subsidised flat ballots drawn

2020-12-15

Ballots were drawn today for this year’s sale of Home Ownership Scheme (HOS) flats and White Form Secondary Market Scheme.

The ballot, conducted by the Housing Authority, determines the priority sequence of applications.

Eligible HOS applicants will receive notifications in batches for flat selection from May.

A total of 7,047 flats from four new developments in Diamond Hill, Sha Tin, Ma On Shan and Fanling are up for sale.

For the White Form Secondary Market Scheme, approval letters will also be sent to successful applicants from May for them to apply for a Certificate of Eligibility to Purchase.

The certificate can be used by the applicant to purchase a flat within 12 months

(The source: news.gov.hk)

Property sales up 17%

2020-12-02

The Land Registry recorded 7,241 sale and purchase agreements for all building units for registration in November, up 17% from October and 8.1% higher year-on-year.

The total consideration for sale and purchase agreements rose 15.9% from October to $66 billion, representing a 7.2% year-on-year increase.

Of the agreements, 6,070 were for residential units, up 22.6 % from October and a rise of 5.5% compared to the same month a year ago.

The total consideration for residential units was $58.1 billion, up 16.1% compared with October and 21.6% higher than November 2019.

There were 450,229 land register searches last month.

(The Source: news.gov.hk)

Scrapping stamp duty helps economy

2020-11-26

Secretary for Financial Services & the Treasury Christopher Hui today said the abolition of the Doubled Ad Valorem Stamp Duty on non-residential property transactions can address people's liquidity needs during the current economic downturn. Mr Hui told reporters at a press conference on the Policy Address initiatives this afternoon that it is difficult to estimate the effect the abolition of the stamp duty would have on government revenue. “In terms of the Doubled Ad Valorem Stamp Duty on non-residential property transactions, I am sure as you can imagine, with this reduction in rates, there could be two sets of factors at play. On the one hand, there could be potential stimulation of transactions that may bring in more revenue. “At the same time, there could be other factors which will result in a reduction in revenue because it is a reduction in rates. “So I think the ultimate outcome of this exercise will be subject to a whole range of factors which may offset each other, so it is very hard for us to provide an estimate in terms of the actual revenue impact.” Mr Hui stressed that the stamp duty rate adjustment, which took effect today, was not aimed at boosting tax revenue. “If you go back to the aim of this proposal, the whole idea is not for revenue creation purposes, it is really to allow those owners who are in possession of such properties to have a way to go in terms of cashing in these properties to facilitate their liquidity flow at this rather challenging economic time. So that is something that we have in mind when we crafted this whole policy.”(The Source: new.gov.hk)\r\n\r\n\r\n

Mortgage scheme extended for a year

2020-11-02

The Mortgage Corporation today announced that the Fixed-rate Mortgage Pilot Scheme will be extended for one year to October 30, 2021.

In response to the change in market interest rates, mortgage interest rates will be adjusted.

The interest rates per annum for 10, 15 and 20 years are 1.99%, 2.09% and 2.19%.

The Fixed-rate Mortgage Pilot Scheme provides an alternative financing option to homebuyers for mitigating their risks arising from interest rate volatility, thereby enhancing banking stability in the long run.

The aggregate loan amount of the scheme is $1 billion, subject to a maximum loan amount of each private residential mortgage of $10 million.

As the borrowers will be insulated from interest rate movement under the fixed-rate period which is 10 years or longer, agreement has been obtained from the Monetary Authority that borrowers will not be required to meet the stress testing against interest rate rise, but the current debt-to-income ratio will still be applicable.

(The source: news.gov.hk)

Mortgage plan extended

2020-11-02

The Housing Authority today extended for another six months the time-limited arrangement allowing banks and financial institutions to offer a mortgage principal moratorium plan to Subsidised Sale Flats Scheme (SSFS) mortgagors.

Following the extension, the principal moratorium period should commence by June 30 next year.

Under the current time-limited arrangement, banks and financial institutions participating in the provision of mortgage loans for the SSFS may offer a mortgage principal moratorium plan to the scheme’s flat mortgagors, allowing them to defer repayment of the principal for a maximum period of 12 months.

The repayment period of the mortgage loan may also be extended correspondingly by a maximum of 12 months.

The authority said it has received requests from some participating financial institutions through the Hong Kong Association of Banks to extend the time-limited arrangement for six months to June 30 next year to support SSFS flat mortgagors with short-term liquidity problems to tide over the difficult times arising from the COVID-19 epidemic.

In light of the ongoing impact of the epidemic on the economy, to help relieve SSFS flat mortgagors' cash flow problems and reduce the possibility of mortgage default, the authority agreed to extend the time-limited arrangement.

The moratorium plan is applicable to the Home Ownership Scheme, the Private Sector Participation Scheme, the Buy or Rent Option Scheme, the Tenants Purchase Scheme and the Green Form Subsidised Home Ownership Scheme in the primary market and under the Secondary Market Scheme.

(The source: news.gov.hk)

92k private flats projected

2020-10-30

The projected private flat supply for the next three to four years is 92,000 units, unchanged from the previous estimate.

The Transport & Housing Bureau today said there were 11,000 unsold units in completed projects at the end of September.

There were 62,000 units under construction, excluding those pre-sold by developers, and 19,000 units from disposed sites where construction may start any time.

The number of flats under construction in the third quarter was 3,500, while the number of units completed for the period was 2,300.

(The source: news.gov.hk)

Small flats defy Hong Kong’s recession, gaining in price as larger homes continue to lose value

2020-10-30

Small apartments appear to be bucking a downward trend in Hong Kong’s property sector, gaining in price as the city struggles with a

crippling recession

The prices of bigger homes and commercial property are falling as the coronavirus pandemic, which followed months of social upheaval, has wrought havoc on the local economy, slashing household budgets and causing a

spike in unemployment

But gains in the prices of small flats in September were enough to counter those drops and push an official gauge back into positive territory for the first time since early summer.

The overall home price index rose 0.42 per cent in September to 382.6 after two months of declines amounting to 1.5 per cent, according to data released by the government’s Rating and Valuation Department on Friday.

“The increase was unexpected, but the property market adjustment should continue,” said Thomas Lam, executive director at Knight Frank. “The current real estate market is very distorted.”

It was only the prices of homes smaller than 753 square feet that actually went up, with those measuring less than 430 sq ft rising 0.4 per cent.

Much bigger flats

– those larger than 1,722 sq ft – went in the other direction, falling by 1.3 per cent.

Small apartments tend to cater to small families and are “more sensitive” to an improvement in market sentiment, according to Derek Chan, head of research at Ricacorp Properties.

“Buyers entering the market are mainly [targeting] small to medium sized flats. As sentiment improves, they become more proactive in entering in market,” said Chan. “Then homeowners will have less room for price negotiation or reduction.”

Buyers of bigger homes are more concerned about the longer-term prospects of the market, which “does not [benefit from] stable user demand, so large units, luxury homes continue to be under pressure,” he added. “Buyers are not very proactive in entering the market. Some owners of luxury homes with liquidity needs may sell them at lower prices, driving the prices down.”

Based on last year’s peak, residential property prices have fallen by only 3.6 per cent.

Some 557 units in three projects will go on sale this weekend.

(The Source: South China Morning Post)

Reclamation a feasible option: CE

2020-10-21

Chief Executive Carrie Lam said reclamation is one of the feasible options for creating land in Hong Kong if country parks and wetlands cannot be used for development.

Mrs Lam made the statement ahead of today’s Executive Council meeting in response to media queries about whether reclamation in Hong Kong would contradict President Xi Jinping’s commitment to protect the environment.

She said: “Hong Kong's land area is very limited. There’re 1,100 sq km and the developed proportion is about 26% to 27% because Hong Kong people, including me, we all treasure the country parks, the wetlands, and many of them are topographically very difficult - there are slopes.

“So the possibility of creating large parcels of land for us to create the new towns that we used to do in the 1960s and 1970s has become very difficult, if not impossible.”

Mrs Lam pointed out that reclamation outside of Victoria Harbour has always been an option and this idea had been floated more than 10 years ago when she was the Secretary for Development.

“We had already done a very extensive public consultation on further options to create land. It then included using cavern development, reclamation in the form of artificial islands, resumption of private land and brownfield development.

“By now, I think people should realise, again, this is a reality that if you don't allow the Government to touch the country parks, the wetlands, if there are extreme difficulties in resuming some of the land because they have active operations which will affect the economy, then the reclamation that we have been proposing is one of the feasible options.”

The Chief Executive also said that reclamation has benefits.

“There is another environmental benefit of reclamation in Hong Kong, which is to absorb the public fill materials created by the building works in Hong Kong, which are being transported to Taishan to do reclamation under a central government-approved scheme, but that will be exhausted in a few years' time so we have to find our own solution.”

She added that the Lantau Tomorrow Vision has advantages not only in forming large parcels of land but also completes an efficient rail and road network connecting Hong Kong Island via the artificial islands to the western part of the New Territories, and also gives the city a chance to have a third central business district.

(Source: news.gov.hk)

2 sites to provide 630 flats

2020-09-28

The Government will sell two residential sites by tender in the October-December quarter that will provide about 630 flats.

Briefing the media today on the Government’s land sale programme for the third quarter of the 2020-21 financial year, Secretary for Development Michael Wong said one of the residential sites is at the Peak and the other is in Kai Tak.

The Mansfield Road site at the Peak will be divided in two parcels for disposal. The first one, to be tendered in the third quarter, can provide about 240 flats.

The site in Kai Tak is located on the old runway and can provide about 390 units.

In addition to Package 5 of the Mass Transit Railway’s Wong Chuk Hang Station project and other private projects, the total supply in the third quarter will be about 2,780 units.

For commercial sites, the Government will sell by tender Site 3 at the New Central Harbourfront, which was originally planned for tender in the second quarter.

Mr Wong said its sale will adopt the rather uncommon two-envelope approach that features a design tender and a price tender.

“Site 3 is a very valuable and very strategic piece of land. Not only will it provide us with substantial Grade A office area which is good for long-term economic development, it will also act as a connecting landscape corridor linking our new harbourfront with various parts of Central. So its value goes way beyond just the amount of money.

“So the question of discount did not arise for the Government. For us, it’s always been a market-led approach.”

He said the tender documents are complicated and the Government will need more time to complete the necessary work as a result.

The Government will also put up for sale one industrial site in Fanling in the third quarter, capable of providing about 20,100 sq m of gross floor area.

Mr Wong added that the Government would continue to increase land supply through a multi-pronged approach to meet the community's needs for housing, economic and social development.

(The Source: news.gov.hk)

Rents revive as price falls spur investors

2020-09-17

Staff reporter

Despite rising unemployment rates, average rents in the housing market inched up in July, especially for new projects.

The average rental indices in Hong Kong's residential market rose 0.6 percent month on month, the latest data from the ratings and valuation department showed.

The rental yield of new projects ranged between 2.3 and 2.9 percent. Small and medium flats in new projects with monthly rent levels of below HK$20,000 proved popular.

Hong Kong Property Services (Agency) chief executive Richard Lee Chi-shing said property prices have dropped during the city's third wave of local Covid-19 infections.

As a result, those with sufficient capital may use this opportunity to purchase a second flat for investment.

He also said that rents in new projects have recorded a slight increase, meaning rental income may better compensate for mortgage repayments.

Residential properties are relatively strong hedges, Lee added, so investors tend to buy flats for long-term rental income.

Rents in Kai Tak, an area that has seen a significant number of new flats, have risen consistently.

Ricacorp Properties attributed this to improvements in the neighborhood's infrastructure, with the recent opening of a new MTR station.

The overall rental yield for the area was around 2.7 percent, the agency said.

A 349-square-foot unit at Vibe Centro in Kai Tak was rented out for HK$16,000 per month, or HK$46 per sq ft.

Based on the latest estimated property price of HK$7.54 million, the owner can expect to enjoy a 2.6 percent rental return.

In the same area, the monthly rent for a 336-sq-ft flat was HK$15,800, or HK$47 per sq ft. Based on the flat's market price of HK$6.4 million, the rental yield was 2.9 percent.

Centaline Property Agency said purchasing power has continued to improve with the virus situation and flat viewings have increased.

Tseung Kwan O recorded 510 rental transactions last month, a new high for the neighborhood.

Rental transactions were largely driven by an influx of flat leases for Malibu in Lohas Park, with 148 rental deals last month going for an average of HK$37 per sq ft.

A one-bedroom flat totaling 369 sq ft was rented out for HK$15,500 per month, or HK$42 per sq ft. Based on the flat's market price of HK$6.14 million, the rental yield was 3 percent.

Atop Nam Cheong station, Cullinan West also recorded good rental returns, with Hong Kong Property Services saying the tenancy market is active for this new development.

A 350-sq-ft one-bedroom flat was originally offered for HK$18,000 per month, but was ultimately rented out for HK$17,500 per month, or HK$50 per sq ft.

Based on the estimated market price of HK$7.8 million, the owner will enjoy a 2.8 percent rental return.

The Pak Shek Kok area in Tai Po also saw a resurgence in rents after a drop caused by an oversupply of new projects.

Centaline Property Agency said there is some rental demand for St Martin, with a one-bedroom unit totaling 381 sq ft rented for HK$13,500 per month, or HK$35 per sq ft.

Based on the flat's market price of HK$7.15 million, the rental yield was around 2.3 percent.

staff.reporter@singtaonewscorp.com

(The source:The standard)

Hong Kong home rents drop near universities, as mainland Chinese students stay at home for online classes

2020-08-25

‧ Rents in some areas close to universities have dropped by about a third, by 3.4 per cent since January overall

‧ Landlords are offering generous concessions as they shift focus to local tenants

The Hong Kong residential market has lost one of its most steady sources of tenants – mainland Chinese students – this summer, after most of the city’s universities moved to online teaching for the coming semester amid the coronavirus pandemic.

Rents in some areas close to universities have dropped by about a third year on year. In Sha Tin, which usually caters to students of Chinese University, Baptist University and City University, mainland Chinese renters accounted for 20 per cent to 30 per cent of deals, said Derek Chan, head of research at Ricacorp Properties.

“In previous years, mainland students started looking for flats as early as May or June, because demand would be really high. But they are not coming this year,” he said.

Overall rents in Hong Kong have fallen by 3.4 per cent since the coronavirus first hit the market in January, according to data by local brokerage Midland Realty, despite the average rent rising slightly over June and July. The average rent per square foot rose 0.8 per cent in July to HK$35.27 (US$4.6).

This modest recovery too might have been snapped by the third wave in Hong Kong, property agents said, a situation that will be exacerbated by the arrival of fewer students from mainland China. “We have lost 70 per cent of students tenants [in Tai Wai],” said Jason Kwok, a senior branch manager at Ricacorp. “The impact is huge.”

(The source: South China Morning Post)

Living subsidy applications open

2020-08-02

The subsidy amount for two-person households is $9,000.

Beneficiaries should currently be renting accommodation on a monthly basis or for longer tenures in private housing, industrial buildings, commercial buildings or social housing operated by non-governmental organisations (NGOs).

People renting bed spaces offered under the Home Affairs Department's Singleton Hostel Programme or bed spaces in hostels operated by NGOs for rehabilitated offenders, residing in temporary housing as well as those living on board vessels or homeless can also apply.

The income limits for two-person households must not exceed $22,000 and beneficiaries should not be receiving CSSA or own any property in Hong Kong.

Their monthly rent for private housing, industrial buildings, commercial buildings or social housing should not exceed $11,000.

The application deadline is November 30.

The programme was launched on July 2 to relieve the financial pressure on low-income households. As at July 30, around 6,000 one-person households have submitted applications.

The fund will accept applications from three-person households from September 1, while all households irrespective of their size can submit applications from October 5.

Click https://www.communitycarefund.hk/en/assistance_2020.html for details.

(Source: news.gov.hk)

HK secondary flats prices dip in week

2020-07-31

Secondary home prices in Hong Kong retreated the past week.

The Centaline Property Agency's price-tracking Centa-City Leading Index dipped by 0.04 percent to 181.69 points, after rising for three consecutive weeks.

The three sub-indexes were little changed from a week before. The Mass CCL index, tracking large-scale real estate was up by 1.8 percent from a month ago to 185.01 points. The sub-index tracking small and medium flats was at 182.33 points, up 1.68 percent month-on-month.

Analyzed by districts, the sub-index for secondary property in New territories West increased by nearly 1 percent to a 50-week-high of 168.85 points, and that for Hong Kong Island hit a 46-week-high.

However, secondary prices in New territories East dropped with the sub-index falling by 1.1 percent from a week before and that of Kowloon was down 1.7 percent.

(Source: The Standard)

Hong Kong outperforms global gateway cities as favoured investment destination for property over US$10 million

2020-07-24

Hong Kong remains the preferred destination for

luxury housing

over US$10 million, but investors are delaying big ticket purchases against an uncertain economic backdrop, with the number of deals plummeting by more than half in the first half.

The city recorded 60 such residential transactions in the first half, 61.3 per cent lower than the 155 seen a year earlier, according to Knight Frank. The number of deals, however, was 15.4 per cent more than Los Angeles, which came second.

“Against the backdrop of quantitative easing in different parts of the world, luxury residential assets are [a] good store of value for investors,” said Maggie Lee, senior director and head of residential agency at Knight Frank Hong Kong. “Coupled with the scarcity [of] luxury homes in Hong Kong, the buyers are still optimistic these assets would bring capital appreciation over a longer-term period.”

The outlook for Hong Kong’s luxury property sector, however, does not look bright. JLL expects prices to fall by 10 to 15 per cent this year because of decreasing capital flow from the mainland to

Hong Kong’s real estate market

, economic recession and

rising unemployment rate

(Source: Source China Morning Post)

Hong Kong’s New Virus Rules Impose $645 Fine for No Mask

2020-07-13

Technology

Hong Kong’s New Virus Rules Impose $645 Fine for No Mask

Jinshan Hong

and

Manuel Baigorri

Hong Kong ordered gyms and bars to close for a week, restored strict limits on public gatherings and introduced fines for anyone refusing to wear a mask on public transport in a fresh bid to prevent the resurgent coronavirus from spiraling out of control.

The tougher measures, to take effect Wednesday, include drastically limiting the number of people gathering in public back to four, Chief Executive Carrie Lam said in a press conference on Monday. The limit had just been raised to 50 in mid-June. The city also confirmed its eighth coronavirus death.

Among other measures: Hong Kong will require inbound travelers who have been to high-risk regions in the last 14 days to pass a virus test before boarding their flights; restaurants will be allowed to offer only takeout from 6 p.m. to 5 a.m.; and the number of patrons at a table at other times is limited to four. Amusement parks, gyms and 10 other types of venues are to close for seven days. Lam said the city will allow civil servants flexibility on working hours, and urged companies to let staff work from home.

People who refuse to wear a mask on public transport face a potential HK$5,000 ($645) fine.

As part of the clampdown, Hong Kong Disneyland will close on July 15. Hotels serving the resort will remain open, Walt Disney Co. said in a statement.

“They have put in place enhanced health and safety measures that reflect the guidance of health and government authorities, such as social-distancing measures and increased cleaning and sanitization,” the company said.

The former British colony reported 41 local coronavirus cases on Monday, another record daily high as the resurgence of infections looks set to grow into the city’s biggest wave yet. That brought the total to 1,522 cases in a city of more than 7 million people.

Of the 41 cases, 21 are related to previous clusters while 20 were of unknown origin, government officials said Monday.

Why ‘Silent Spreaders’ Make Coronavirus Hard to Beat: QuickTake

The significant proportion of cases with unknown origins over the past few days suggests that hidden chains of transmission have been circulating in the Asian financial hub for some time as people returned to work and social activities.

Hong Kong is now facing a major setback in its virus containment fight. After reopening for less than two months, schools have been ordered into an “early summer holiday,” while restaurants and bars limit the number of patrons.

Virus Resurgence

Hong Kong sees a record in local infections after easing distancing rules

Sources: Hong Kong government, Bloomberg

“A containment strategy alone may not be able to slow down the spread of infection at this stage,” Chuang Shuk-kwan, an official with the Department of Health, said on Monday. Senior government officials are “very concerned about the situation now.”

Chuang called for citizens to remain vigilant, and observe personal hygiene and social-distancing practices.

Events including Hong Kong’s week-long book fair and the champion awards dinner by the Jockey Club have been canceled, in a sobering reminder that the pandemic is far from over. Without an effective and widely distributed vaccine, cities are likely to continue in a state of limbo in which any easing of social distancing will lead to a spike of infection.

While Hong Kong’s people and businesses are suffering with the virus resurgences, neighboring Macau received good news after largely containing the outbreak. China’s Guangdong province agreed to lift quarantine requirements for travelers returning from the world’s biggest gambling hub, paving the way for a revival of its languishing casino industry.

Casino resorts in Macau saw gaming revenue plunge by more than 90% for three straight months as the highly infectious pathogen forced countries to shut borders.

(An earlier version corrected which visitors would be tested in the third paragraph.)

— With assistance by Dominic Lau, and Christopher Palmeri

from Bloomberg

Rates, rent demand notes issued

2020-07-10

Demand notes for rates and government rent for July to September have been issued. Payments should be made by July 31.

The demand notes reflect the rates concession for this quarter, subject to a ceiling of $1,500 and $5,000 for each rateable domestic and non-domestic tenement respectively. Any unused portion of the concession in this quarter will not be used to offset the outstanding rates in any other quarter.

The concession does not apply to payment of government rent.

A 5% surcharge will be imposed for late payment. If the amount, including the 5% surcharge, remains unpaid six months after the payment deadline, a further surcharge of 10% will be levied.

Those who have not received demand notes should call 2152 0111.

(Source: news.gov.hk)

Stamp duty rates carefully considered

2020-07-08

The Government must carefully take into account the impact of relevant arrangements on the property market when considering whether stamp duty rates concerning residential properties should be adjusted, Secretary for Financial Services & the Treasury Christopher Hui said today.

He pointed out that any move to relax demand-side management measures or lower stamp duty rates may stimulate some citizens' demand for local residential properties and lead to a counter-productive result of pushing up property prices when the current housing supply still lags behind demand. Therefore, the Government must act prudently.

“Under the existing mechanism, if a Hong Kong permanent resident acquires a new residential property to replace his/her only original residential property, he/she is required to pay the relevant stamp duty first and claim partial refund of the stamp duty paid after disposing of the original property.

“However, it the relevant requirements are relaxed, it may invite some owners without genuine intention to dispose of their original properties to, under the guise of property replacement, defer payment of stamp duty or hold more than one residential property for a longer period with a view to making profits.”

Mr Hui emphasised that this is at variance with the policy intent of introducing demand-side management measures and goes against taking care of Hong Kong residents' needs in replacing their properties.

He added that with a view to ensuring the healthy development of the property market, the Government will monitor market conditions and take appropriate measures in response to market changes by making reference to a series of indicators.

Such indicators include property prices, home purchase affordability ratio, transaction volume and supply of properties, and local and global economic changes.

(Source: news.gov.hk)

Property sales down 24.7%

2020-07-06

The Land Registry received 32,749 sale and purchase agreements for all building units in the first half of this year, up 4.6% on the second half of 2019 but down 24.7% year-on-year.

The total consideration for these agreements for the first half of 2020 was $269.02 billion, down 8.8% on the second half of last year and 32.3% below that for the first half of 2019.

The number of assignments of building units was 35,038, down 25.8% on the previous half year and 21.5% lower year-on-year.

The total consideration for these assignments was $249.86 billion, down 37.2% compared with the second half of 2019 and 31.9% less year-on-year.

There were 2,373,015 land register searches made in the last six months.

(Source: new.gov.hk)

HK secondary home prices retreat

2020-07-03

Secondary home prices in Hong Kong retreated from a two-week climb.

The Centaline Property Agency's price tracking Centa-City Leading Index fell by 1.46 percent from a week ago to 178.48 points. CCL for small and medium units fell by 1.65 percent, from the previous week. The index tracking large-scale real estate was also down by 0.4 percent week-on-week.

The agency said that the index fell significantly, reflecting the market's general concern that social events may escalate, and some small owners took advantage of high property prices to sell.

(Source: The Standard)

Property sales up 19.9%

2020-07-03

The Land Registry recorded 8,254 sale and purchase agreements for all building units for registration in June, up 19.9% from May and 32.9% higher year-on-year.

The total consideration for sale and purchase agreements rose 16.7% from May to $70.3 billion, representing a 30.6% year-on-year increase.

Of the agreements, 6,987 were for residential units in June, up 16.8% from May and a rise of 51% compared to a year ago.

The total consideration for residential units was $64.8 billion, up 22.8% compared with May and 42.9% higher than June 2019.

There were 477,140 land register searches last month.

(Source: news.gov.hk)

2 residential sites to be sold

2020-06-26

The Government will sell two residential sites by tender in the July-September quarter.

They are in Sai Kung and Tai Po.

Briefing the media today on the Government's land sale programme for the coming quarter, Secretary for Development Michael Wong said the two sites will provide about 160 flats.

Including the MTR Corporation’s plans to open tenders for LOHAS Park phase 13, which will produce about 2,550 flats, the total estimated number of flats provided in the quarter are 2,710.

The Government will also put up for sale two commercial sites for the same quarter.

They are at the New Central Harbourfront and in Tung Chung. Both sites could yield about 267,000 sq m of gross floor area in total.

Mr Wong said: “The site at the New Central Harbourfront can provide about 150,000 sq m of commercial GFA (gross floor area).

“The developer will be required to provide a large scale public open space and the landscape that is spanning across the site to enhance pedestrian connectivity to the Central harbourfront.”

Mr Wong explained that the Government will adopt a “two-envelope” approach for this tender, so that both design and price submissions would be taken into account during the tender evaluation.

The Government will continue to increase land supply through a multi-pronged approach to meet the community’s housing, economic and social development needs, he added.

(Source: news.gov.hk)

Stars settle for mortgages, rock-bottom rents

2020-06-18

Movie star Stephen Chow Sing-chi mortgaged a luxury house on The Peak to JPMorgan Chase Bank in March, while two units at Arezzo owned by Taiwanese actress Pace Wu Pei Ci were rented out at just HK$17 per square foot, even cheaper than public housing.

Chow and local developer Ryoden Development bought the site of the former Skyhigh development in 2004 for HK$320 million and rebuilt it as four houses - Pollock's Path 10, 12, 16 and 18. No 16 and No 18 were sold in 2009 for HK$350 million and HK$300 million, while the No 10 house was sold by Ryoden Development for HK$800 million in 2011.

Chow had mortgaged the No 12 house in 2011 and redeemed it in 2019. The house has been mortgaged again in March this year.

Meanwhile, Pace Wu rented out a 2,851-sq-ft and 2,779-sq-ft featured flat in Mid-Levels West for a total of only HK$100,000 per month last month, 70 percent cheaper than the market price. Its rental price per sq ft was cheaper than that of public housing.

In the rental market of public housing, a 443-sq-ft unit in Leung King Estate in Tuen Men was rented out for HK$9,000 or HK$20.3 per sq ft per month.

In the primary property market, CK Asset (1113) said it will release a price list of Sea to Sky in 24 hours and will open the show flat for the public tomorrow. The first batch for sale will be not less than 285 units, including two-bedroom to four-bedroom flats.

The developer is considering offering flat selection priority for up to 20 percent of apartments to Lohas Park residents.

Kingboard (0148) sold 27 houses at The Cavaridge in Sha Tin, pocketing HK$3.5 billion, and will launch sales of apartments by tender soon.

Wheelock Properties said it has arranged the sales plan for its project Koko Hills in Lam Tin. It is confident the project will be approved for pre-sale consent this month and will launch the sales soon after the approval.

The one-month Hong Kong Interbank Offered Rate, a benchmark of the local mortgage rate, fell for the 14th consecutive trading day below 0.5 percent, the lowest in three years and the longest decline for more than a year. The one-month Hibor fell 2.15 basis points to 0.49714 percent.

(Source: The standard)

14 building plans approved

2020-06-16

The Buildings Department approved 14 building plans in April - five on Hong Kong Island, five in Kowloon and four in the New Territories.

Of the approved plans, nine were for apartment and apartment-commercial developments, two were for commercial developments, one was for factory and industrial developments, and two were for community services developments.

Consent was given for works to start on nine building projects, which will provide 126,856 sq m of gross floor area for domestic use involving 2,165 units, and 55,065 sq m for non-domestic use.

The department also issued 15 occupation permits - three on Hong Kong Island, five in Kowloon and seven in the New Territories.

Buildings certified for occupation have 164,187 sq m of gross floor area for domestic use involving 2,526 units, and 41,038 sq m for non-domestic use.

(Sourse: News.gov.hk)

Secondary home sales tick up over weekend

2020-06-08

Centaline Property Agency recorded 13 secondary transactions at ten blue-chip housing estates over the past weekend, up by 18 percent week-on-week.

Among them, Kornhill in Quarry Bay, Laguna City in Kwun Tong, and Caribbean Coast in Tung Chung recorded no deals.

In May, secondary transactions at ten major estates surged 64 percent month-on-month to 375, according to Centaline.

In the primary market, Sun Hung Kai Properties (0016) has collected about HK$4.5 billion after selling 680 out of 699 units of Wetland Seasons Park Phase 2 in Tin Shui Wai.

SHKP expects to obtain the pre-sale consent for Wetland Seasons Park Phase 3 next quarter, which offers 318 units.

In the commercial property market, rents of Grade A office buildings went down 2.5 percent month-on-month in May, and selling prices 0.9 percent, according to Midland IC&I (0459).

Eric Ong, director at Midland Commercial, expects a significant rally in office building transactions in the second half as more US-listed Chinese companies are set for secondary listings in Hong Kong.

(News from The Standard)

HK private flat prices ease in April

2020-05-29

Hong Kong private units prices slid in April with the tracking price index falling by 0.4 percent year-on-year percent to 376 points, an over-one-year low, data from the Rating and Valuation Department showed.

The gauge has dropped by 0.8 percent accumulatively during the first four months this year.

For private units sized below 1,000 square feet, the sub-index slid by 0.2 percent from March while that for larger units dropped by nearly 0.7 percent month-on-month.

Rents for local private units fell for an eighth consecutive month in April, decreasing by 1.3 percent month-on-month to 180 points.

(News from The Standard)

Hong Kong Home Prices Show Greater Resilience Than Commercial Properties During COVID-19 Outbreak

2020-05-28

According to JLL's Hong Kong Residential Market Monitor Report released today, the price fall in mass residential is milder than that of office and retail during the market downturn.

Figures from JLL show capital values of Grade A office and high street shops have fallen by 14% and 35% from the first quarter of 2019 to the first quarter of this year, respectively. During the same period, mass housing prices have recorded a modest drop of 3%; reflecting resilient residential prices albeit a drop in market activity.

Home prices are also supported by robust sales in the primary sales market. 'OMA by the sea', the first project launched since the implementation of prohibition on group gathering, achieved a first-day sales rate of about 80% out of the 268 units launched, reflecting solid demand in the market.

Henry Mok, Senior Director of Capital Markets at JLL in Hong Kong said, "Over the near term, we expect developers to take advantage of the current window of pent-up demand and hasten their pace of releasing primary units. Asking prices will likely stay reasonable with a view to reducing inventories and taking advantage of the recovering market sentiment."

In the land sale market, the four residential sites sold via government tender so far this year attracted an average of 14 bids per site. The sole commercial site put up for tender this year in Kai Tak only attracted 4 bids and none of them met the government's reserve price. Developers appear to hold a more positive view about the residential market.

Nelson Wong, Head of Research at JLL in Greater China also commented, "Looking forward, we remain cautious about the sector as downside risks appear to be building up. With the latest unemployment rate reaching a ten-year high at 5.2% and likely to increase further, the economic well being of prospective buyers as well as owners will inevitably be affected. Housing prices may soften along with the weakening broader economy and other property sectors."

(News from World Property Journal)

Housing prices slid 3% YoY in Q1

2020-05-27

Mass housing prices have recorded a modest drop of 3% YoY in Q1, according to JLL’s Residential Market Monitor. This shows that the continuous fall in housing prices is more relaxed compared to the 14% YoY and 35% YoY decline in grade A office and high street shops, respectively, over the same period.

It also reflects resilient residential prices, albeit a drop in market activity, with home prices being supported by robust sales in the primary sales market. In addition, the first project launched since prohibition on group gathering, ‘OMA by the sea’ achieved a first-day sales rate of about 80% out of the 268 units launched.

In the land sale market, the four residential sites sold via government tender so far this year attracted an average of 14 bids per site. Meanwhile, the sole commercial site put up for tender this year in Kai Tak only attracted four bids and none met the reserve price.

However, head of research at JLL in Greater China, Nelson Wong warns about the downside risks in the residential sector. “With the latest unemployment rate reaching a ten year high at 5.2% and likely to increase further, the economic well-being of prospective buyers as well as owners will inevitably be affected. Housing prices may soften along with the weakening broader economy and other property sectors,” he said.

(New from Hong Kong Businese)

Over half feel indifferent in owning a home amidst pandemic

2020-05-22

More than half (52%) of Hong Kongers are uninterested in owning a residential property amidst the pandemic, according to a Citi survey. Only 10% think it is a perfect time to buy a home at the moment.

Almost three-fifths (57%) are expecting home prices to fall in the next 12 months, repeating a sharp 15ppt uptick from before COVID-19. Only 6.1% of owners are willing to sell their property at a 10% discount or more amidst the crisis.

Property prices are expected to slip 7.5% by year-end but with a slightly less impact than SARS, with the largest forecasted drop of 10%. In addition, 24% of respondents feel that their household finances are going to worsen in the coming year.

Despite the bearish outlook on the property market, the number of respondents sharing this view during COVID-19 in March fell by 13pp compared with the figure recorded in January before the pandemic began.

(News from Hong Kong Business)