HK - Housing 04 (Apr 16 - Jun 24)

[winston]

Hong Kong chief executive vows to make tough calls to boost housing land supply

Leung Chun-ying also sounds defiant note on use of violence or obstruction to oppose government housing policies

Source: SCMP

http://www.scmp.com/news/hong-kong/poli ... alls-boost

[winston]

Hong Kong’s top developers adopt different land bank strategies to fend of rising competition

HK$58 billion and rising: mainland buyers splash out on assets and land in Hong Kong as yuan devaluation fears linger

In a dramatic change in its strategy, the city’s third largest developer, Henderson Land Development, now focuses its attention on acquiring small urban redevelopment sites on which to build “matchboxes”, or tiny flats, which continue to gain favour among urbanites.

While rivals that have set their sights on mega sites, Henderson Land’s land portfolio includes sites even smaller than a basketball court, or less than 1,800 square feet.

And in a strategy different from SHKP and Henderson, Cheung Kong Property Holdings (CK Property), the city’s second largest developer, has said it is considering non-property projects outside Hong Kong

The proportion of mainland buyers securing winning land bids has risen to 41 per cent.

China Vanke, China Overseas Land and Investment and Goldin Financial made large land acquisitions in the price range of between HK$1.3 billion and HK$6.3 billion, with an estimated flat production of more than 3,700 units,

Industry-wide ebit (earnings before interest and tax) margin in the first half of this year narrowed to 25 to 30 per cent,even when considering that projects built on lower priced land bought by developers in 2010-11 were sold at higher prices in 2014-15.

The fall in margins is mainly due to developers having to offer an array of incentives such as mortgage subsidies and rebates on top of steeper discounts to move sales, he said.

Over the past few years Hong Kong developers enjoyed profit margins of 35 per cent to 40 per cent, Lau said.

“We expect further downside in Hong Kong property margins amid increasing land prices,” he said.

Source: SCMP

http://www.scmp.com/property/hong-kong- ... -land-bank

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http://hk.apple.nextmedia.com/financees ... 1474784827

[winston]

Mainlanders drive up home prices

The media have started reporting about record prices achieved for properties in Hong Kong's secondary housing market, as more and more mainland investors invest in the SAR.

The local housing market has nearly recovered fully after the 15-20 percent drop in prices since last October.

Morgan Stanley favors Sun Hun Kai Properties (0016), Wharf (0004) and Link REIT (0823), while Goldman Sachs likes Cheung Kong Property (1113) and Swire Properties (1972).

Source: Dr Check, The Standard

[winston]

Hong Kong data showed land supply will meet targets this year. But supply could not meet demand over the past 10 years or so.

It takes time for the Hong Kong housing market to restore equilibrium even though the government sells more land.

Source: Dr Check, The Standard

[behappyalways]

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[winston]

Hong Kong home prices to rise 5pc next year, supported by sales volume recovery, analysts say

Buoyant activity in recent months suggests a longer term rebound is underway in Hong Kong residential housing, analysts say

Source: SCMP

http://www.scmp.com/property/article/20 ... e-recovery

[behappyalways]

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[winston]

Will Chinese Buyers Prop Up Hong Kong’s Property Market?

By Shuli Ren

With home prices in mainland China soaring, apartments in Hong Kong no longer look so expensive.

“Hong Kong’s housing affordability ratio, which measures mortgage payments as a proportion of median household income, now stands at 58 percent, compared with between 80 percent to 124 percent in three first-tier Chinese cities,” reported Bloomberg‘s Lisa Pham last Thursday on a Bank of America Merrill Lynch report.

Merrill estimates that mainland Chinese buyers made up to a quarter of new home apartment sales in the second-quarter.

Not surprisingly, Merrill remains buyers of Hong Kong’s property developers, despite their 19% bull run this year.

Deutsche Bank‘s Jason Ching is a lot cautious, advocating us to “take profit as short-lived rebound coming to an end”. Ching leashed onto the fact that Hong Kong’s landlords do not seem to have much pricing power.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ty-market/

[winston]

Mainlanders drive home prices rebound

by Koey Yip

A surge in purchases of Hong Kong homes by non-residents offers one explanation for the 11 percent rebound in prices from the bottom in March.

In September, 250 homes were sold to non-resident foreigners, the most in 14 months and 36 percent higher than the average for the previous four months, according to Inland Revenue Department statistics.

That compares with a low of 62 homes purchased by foreign buyers in February, just before the nadir of Hong Kong's property market.

While the revenue department does not give a breakdown on nationality, analysts and developers say mainland Chinese are the biggest foreign buyers.

Justin Chiu Kwok-hung, executive director of Cheung Kong Properties, said home prices this year may surpass last year's peak. Earlier this year, he predicted home prices to rise within 10 percent in 2016. But levels have already risen by more than 10 percent.

Source: Bloomberg