Tag Archives: budget
Hong Kong saw residential property prices stabilise in June
Residential property prices in Hong Kong stabilised in June with more activity mainly in the primary sector, as developers launched new projects with deep discounts and other enticements. According to the Land Registry, residential sales in June edged up 0.7% month on month, reaching 4,620 units. The gain was attributed mainly to robust activity in the new homes market. Meanwhile there have been more home buyers returning to the market looking for bargains, according to the latest monthly market review report from international real estate consultants Knight Frank. It points out that several new residential developments were oversubscribed in June. One example was Park Yoho Venezia in Yuen Long, which managed to sell over 90% of its available units within hours on the first day of the launch. This trend is expected to continue, with developers offering deep discounts and aggressive mortgage schemes to boost sales. Interest in the ultra-luxury residential market showed no signs of abating. For example, the top floor unit in Severn Villa on the Peak sold for HK$232 million or HK$170,463 per square foot, making it the most expensive apartment in Hong Kong. Knight Frank believes that high net worth individuals are expected to continue acquiring premium residential properties in Hong Kong given their scarcity and high status. The report also points out that the government of Hong Kong has announced that seven residential sites, capable of providing 4,800 flats, will be available for sale by application in the third quarter. As of the end of May, the number of homes pending pre-sale consent had risen 11% month on month to 14,526 units, the highest level in eight months, according to the Land Department. ‘Given the increase in supply and uncertainty brought about by Brexit, we maintain our forecast of a 5% to 10% drop in luxury home prices and up to a 10% decline in mass residential prices over the year,’ the report concludes. Meanwhile, in the commercial sector Grade-A office leasing on Hong Kong Island remained subdued in June. On the supply side, tight availability limited choices in the market, while on the demand side mainland companies slowed their expansion pace in Hong Kong after the previous leasing boom. The report points out that the Kowloon East office market remained very active, with the key driver being relocation demand from tenants across the harbour. One reported example involved Kingfisher, which moved from Cornwall House in Quarry Bay to KOHO in Kwun Tong. Over the past few months, a number of co-working space operators have been aggressively expanding in Hong Kong, becoming one of the major sources of demand for office space. For example, WeWork reportedly took up large office space of about 60,000 square feet in Asia Orient Tower in Wan Chai last month. A US co-working space operator reportedly took up four floors, spanning 29,000 square feet in Soundwill Plaza in Causeway Bay. ‘Looking ahead, we expect rents in core business areas to rise… Continue reading
UK house prices up 1.8% in second quarter of 2016, but stagnant in London
UK house prices increased by 1.8% during the second quarter of 2016 and were up 8.5% compared to the same period a year earlier, according to the latest quarterly index data. This took the typical price of a standardised UK property to a record of £215,582 from £211,868 in the first quarter of 2016, the Halifax House Price Index administered by market shows. The data also shows that London house prices have increased more than double the UK average and nearly four times greater than in Northern Ireland despite stagnating in the second quarter of the year while prices in Scotland and Wales fell. Also, the annual increase of 8.5% during the second quarter was the lowest recorded since the third quarter of 2015 but house prices have now risen on a quarterly basis for 15 successive quarters, and prices are also up some 36.6% since the height of the financial crisis in the spring of 2009. But overall, considerable regional variations in terms of both house price inflation and standard house price levels continued into the second quarter of 2016. London, followed by the South East, remain by far the most expensive areas to purchase housing, with the average house price in the capital currently pushing close to £450,000. With the lowest prices in Northern Ireland at £119,000, the gap between the most expensive and cheapest regions is at a new record of just under £330,000. That said, in a sign that April’s stamp duty changes have perhaps taken some heat out of the London market, prices were unchanged in the second quarter following a 7.2% rise in the previous quarter, although they remained well up on a year earlier at 14.6%. Along with the South East with growth of 13.9%, house price inflation in London was the strongest seen in the UK. Outside of these two regions, no others recorded double digit house price rises with most registering considerable slowdowns compared to the previous quarter. In Scotland prices fell 1.6% and were down by 0.6% in Wales while the rate of growth in Northern Ireland fell sharply to just 3.5%. Moreover, house prices in Northern Ireland are still some 48% down on their peak seen in the second quarter of 2007. Indeed, in Wales prices remain close to 10% down on pre-financial crisis levels and Scotland some 6.4% down. Other regions currently recording house price levels below pre-financial crisis highs include the North down 6.9% and the North West down 2.5%. ‘The UK housing market showed signs of cooling in the spring, with the annual rate of inflation slowing to 8.5%. Although average prices moved 1.8% higher than the first quarter, only six of the 12 UK regions saw house prices rise in the three months to June, with prices falling in five regions and stagnating in London,’ said Chris Williamson, chief economist at Markit. ‘This is the first time that prices have failed to rise in London since late 2012. The… Continue reading
