HK - Housing 04 (Apr 16 - Jun 24)

[winston]

State-owned bond company to guarantee notes worth US$2.7 billion issued by Chinese developers

by Yulu Ao

Source: SCMP

https://www.scmp.com/business/article/3 ... 1efc43f3d1

[behappyalways]

Living in 15 sq ft: Inside Hong Kong’s coffin homes
https://m.youtube.com/watch?v=gf-B02K89fU

[winston]

Home prices 'near the bottom'

Hong Kong's home prices to reach the bottom in the second quarter of next year and rebound by 5 percent in 2023.

MS predicts transaction volumes will rebound 28 percent in the primary market and 15 percent in the secondary market.

Source: The Standard

https://www.thestandard.com.hk/section- ... he-bottom'

[winston]

One of Hong Kong’s priciest homes sells for US$16.6 million loss off of 2019 price, as luxury segment slumps

The four-bedroom luxury home in the ultra-exclusive Mount Nicholson enclave sold in January for 25 per cent less than the owner paid in 2019

The city has seen a series of money-losing sales, as luxury-home prices are forecast to decline by 1.5 per cent this year

Source: SCMP

https://www.scmp.com/business/article/3 ... ent-slumps

[winston]

Secondary market sales dive to nine-month low

by Karen Ng

New private homes have stolen the spotlight in the property market and not many affordable secondary listings are left for potential buyers. He believed the secondary market will continue to be overshadowed by the buoyant primary market in this quarter.

Source: The Standard

https://www.thestandard.com.hk/section- ... -month-low

[winston]

Hong Kong home prices rise for third month in March

Hong Kong private home prices in March rose for the third month and edged up 1.4 percent from February, as the reopened border with China and a raft of new launches by property developers at attractive prices boosted market sentiment.

The rise in home prices last month followed a revised 2.4 percent gain in February, official data showed on Wednesday.

Transaction volume, however, is expected to soften in April after the earlier spike, as the earlier rush to buy has subsided and the more recent volatility in the global markets has deterred some potential buyers.

Source: The Standard

https://www.thestandard.com.hk/breaking ... arch%C2%A0

[winston]

Morgan Stanley cuts home price forecast on slowdown

Morgan Stanley cut the full-year Hong Kong home price growth projection from 10 percent to 8 percent as transactions and investment demand slow.

Morgan Stanley expresses a more optimistic outlook for the office market compared to that of the residential, saying office rents are reaching a bottoming point whereas the rebound in residential prices is expected to experience a slight slowdown.

Source: The Standard

https://www.thestandard.com.hk/section- ... n-slowdown

[behappyalways]

A glimpse inside Hong Kong’s notorious subdivided homes
https://m.youtube.com/watch?v=GKvIpAKPXPM

[winston]

Hong Kong developers offer huge discounts, cut prices to 2018 levels for new project launches to boost sales

Henderson has priced Henley Park in Kai Tak at an average of HK$21,088 (US$2,694) per square foot after discounts, which an agent says is 15 per cent below market price

Developers and agencies are even offering sweeteners like mortgage discounts, dining and travel vouchers to exotic destinations like the Maldives to drum up sales

Lam Ka-sing & Julia Zhong

Source: SCMP

https://www.scmp.com/business/article/3 ... 00cc7a052c

[winston]

JPM Says Undervalued Assets in HK Property Mkt May Spur Acquisitions & Shr Buybacks from Developers

As the valuations of Hong Kong developers slump to a fresh trough in three decades, it will likely entice homebuilders with ample cash capital to acquire assets, conduct share buybacks or take out minority shareholders, according to a report published by JPMorgan.

The report highlighted that Hong Kong developers and consortiums will be more than delighted to capitalize on emerging opportunities amid the current market downturn.

At the moment, the city’s property sector is trading at a combined market cap of HKD1.1 trillion, with their aggregated net asset value reaching HKD3 trillion. This indicated that there is a large pool of undervalued assets for developers to pick from.

As such, developers such as CK ASSET (01113.HK), WHARF REIC (01997.HK), KERRY PPT (00683.HK), SWIRE PACIFIC A (00019.HK), SWIREPROPERTIES (01972.HK) and HENDERSON LAND (00012.HK) will likely adopt a more active approach within the property market.

Related News: G Sachs Adds HK 2023E Home Prices to +5%, Cuts TPs on Developers by 5% on Avg.

The broker anticipated that any potential actions by developers will likely center around several major objectives, including business expansion, deleveraging, streamlining organizational structure, and developing a succession plan.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN