Tag Archives: infrastructure
Hong Kong property sales fall amid call for help for young buyers
Residential property sales in Hong Kong decreased by 28.2% in March due to the introduction of a seventh round of market tightening measures, according to the latest analysis report. The move by the Hong Kong Monetary Authority is supressing the housing market amid calls for more housing to be built to measures put in place to help young first time buyers, says the report from international real estate firm Knight Frank. It also shows that mass residential sales below HK£10 million dropped almost 30% but prime residential sales above this price level saw a lower fall at 16.2%. The report points out that the tightening is being felt the most at HK$7 million and below. Despite the fall in sales, prices in the mass residential market increased by another 2.6% in March while luxury property prices remained stable. ‘To tackle the housing problem in Hong Kong, Knight Frank believes that the government should not focus on supressing housing demand, but effectively increase housing supply and provide assistance to first time home buyers,’ the report says. ‘The government should ease restrictions on mortgage lending for first time and young home buyers, perhaps by following the example of Singapore which has applied age conditions on housing mortgage loans,’ it explains. The report also shows that the office sales market was more active in March compared to February. Decentralised areas in particular saw some large transactions. It says that the latest initiatives launched by the Chinese government, including the establishment of the Asia Infrastructure Investment Bank and the proposed Shenzhen to Hong Kong through train will inevitably increase capital flow in the region. ‘Hong Kong being a global financial hub situated at the cross roads of Asia is set to benefit from this. We expect this to translate into increased commercial activity which will stimulate demand for office space from related industries taking the opportunity to expand their business in the city,’ the report points out. ‘As a result we remain optimistic about the office market in Hong Kong. Given the limited supply of office space and sustained demand from Chinese firms and certain industries, we expect Grade A office rents to rise by up to 5% during the year,’ it adds. Continue reading
Major new development announced for London’s Canary Wharf
Plans to create a new waterside community on the eastern edge of Canary Wharf in London with up to 3,610 homes and more than 17,000 jobs have been approved by the Mayor of London. Major new development announced for London’s Canary Wharf Plans to create a new waterside community on the eastern edge of Canary Wharf in London with up to 3,610 homes and more than 17,000 jobs have been approved by the Mayor of London. It is the latest in a series of new developments that Mayor Boris Johnson hopes will help tackle the severe shortage of homes in the capital city, especially affordable homes. The new development, on land formerly known as Wood Wharf, will transform a vast 13.6 hectare site that has been semi derelict and underused for decades. In addition to new housing, including affordable housing options, the scheme will include a variety of business and retail units, hotel, leisure facilities, a new primary school and a doctor's surgery. There will also be up to 35,000 square meters of retail floor space, a community centre and a network of parks and public squares and the centrepiece will be a 57 storey cylindrical residential skyscraper facing the waters of South Dock, designed by Herzog & de Meuron, the Swiss architects behind the Tate Modern and the Bird's Nest Olympic stadium in Beijing. Developer Canary Wharf Group will also be contributing in excess of £60 million towards Crossrail and an additional £27.5 million for other infrastructure needs. This will include over £10 million for local transport improvements, some of which will be used to improve the nearby Preston's Road roundabout. At least 25% of the new homes will be affordable but a review mechanism has been put in place that could see the number of affordable homes rise to 40% and 80% of the affordable homes will be affordable rent and the remainder will be intermediate housing. ‘This vast development will transform a currently derelict brownfield site beyond all comprehension into a thriving new community with thousands of new homes and jobs. This is exactly the kind of scheme that we need to accommodate London's booming population that is set to break through the nine million mark within the next decade,’ said Johnson. According to Sir George Iacobescu, chairman and chief executive officer of Canary Wharf, the new development will reinforce Canary Wharf's position into the future as one of the most exciting and vibrant places to live and work in London. ‘The new phase of Canary Wharf will include up to 3,610 new homes, and 1.9m square feet of office buildings designed to accommodate the fast growing technology media and telecoms sector as well as financial and professional services firms,’ he explained. ‘It will offer high street retail units to complement Canary Wharf's existing retail offer, as well as affordable housing on site. It will also include substantial new green parks and dockside walks, a library, a large GP surgery, a school for 420 children, a community sports hall… Continue reading
Concerns over watering down of affordable housing commitments
Property experts are warning of an affordable housing time bomb in the UK which needs addressing to ensure enough homes are not only built but in the pipeline to cover future demand. It follows a recent case where a new appeal mechanism to remove the obligation of a developer to provide affordable housing was implemented and may open the flood gates for others to follow suit. Prior to the recession, many property developments were granted consent on the basis that, under section 106 agreements, a certain percentage of what was to be built would be earmarked for social housing. However, as the downturn began to bite, many developers found that the projects they were involved in were becoming increasingly unviable and sought to reduce the number of these properties and replace them with dwellings for private sale. Before 2008, local councils were able to stand their ground with regard to social and affordable housing requirements. But as the recession took hold and developers started to withdraw on their affordable housing commitments, councils were held over a barrel. It now seems that a new mechanism introduced through the Growth and Infrastructure Act 2013 is being used by developers to reduce their affordable housing commitments and follows a number of recent cases where the affordable housing requirements were reduced. This includes a development in Gloucestershire where the affordable housing commitment went from 20% on one site and 30% on a second site to 14.1% across the two. Another case in Exeter resulted in the affordable housing provision being reduced to zero. Angus Taylor from property consultants Bruton Knowles now believes that developers and councils need to work closely together before committing to a scheme so that a reasonable balance is struck between the provision of affordable housing stock while allowing developers to make any scheme viable and profitable. ‘Although we’re coming out of the recession, I believe there is going to be more cases where developers appeal on their affordable housing commitments. Coupled with a reduction in the number of affordable houses being built during the recession has made for a perfect storm in affordable housing provision,’ he said. ‘What’s key is that developers undertake stringent viability studies prior to the submission of any planning application. That way they know what the bottom line will be before any work is carried out,’ he explained. ‘Councils also have to be reasonable in their demands on what they’re asking developers to provide, otherwise nothing will get built leaving a shortfall of both private and affordable housing. What we don’t want is for this ruling to turn into a free for all where developers en masse appeal against their prior commitments,’ he added. Continue reading
