HK - Housing 04 (Apr 16 - Jun 24)

[winston]

Hong Kong’s home prices to decline further amid high mortgage rates, glut of new units, lack of mainland buyers: JLL

The company’s latest forecasts says prices will drop 5 to 10 per cent in the second half, resulting in a total drop of 5 to 8 per cent in 2023

Housing market is having ‘the longest price adjustment since 2008’ and ‘has not found a bottom’, says JLL Hong Kong chairman

by Salina Li

Source: SCMP

https://www.scmp.com/business/companies ... 158bb4e76a

[winston]

When will Hong Kong property prices recover? Not any time soon

Weakness in the market is good news for buyers but bad for those in the city who own residential property and might want to sell

Investors need to have confidence that the weakness of China’s stock market implies a phase of recovery, which in turn will benefit Hong Kong

by Richard Harris

Source: SCMP

https://www.scmp.com/comment/opinion/ar ... -time-soon

[behappyalways]

Shocked Hong Kong’s real estate market!
Li Ka-shing’s Cheung Kong’s new project “30% off” and housing prices returned to the level of 7 years ago.
Experts reveal the reasons behind it

震撼香港房市!李嘉誠旗下長實新建案"打7折" 房價返回7年前水準 專家揭背後原因｜非凡財經新聞｜20230806

https://m.youtube.com/watch?v=2y7UnGkFqfc

[behappyalways]

Hong Kong Property Stocks
https://twitter.com/hmeisler/status/1691128846257475594

[winston]

Property Management – China

1H23 Results Wrap-up: Benefitting From Strong Property Policies in 2H23

For 1H23 results, the decline in non-community VAS margin raises concerns while newly added interim dividends came as a surprise.

The divergence between SOEs and POEs is more pronounced in business segment.

SOEs reiterated their growth targets while lowering cyclical revenue will be good for POEs’ long-term development.

Maintain OVERWEIGHT on China’s property management sector.

Source: UOBKH

https://research.uobkayhian.com/content ... 58a2ed314c

[winston]

Home prices could plunge 15pc in 2024, warns SocGen

by Themis Qi

Property prices in Hong Kong could fall by a further 10 to 15 percent in 2024 if interest rates remain high, Societe Generale warns.

And UBS says an easing of home purchase curbs by the government will have only a limited impact on the market.

Source: The Standard

https://www.thestandard.com.hk/section- ... s%20Qi%204

[winston]

Hong Kong Developers’ $56 Billion Rout May Deepen as Risks Mount

Further home-price drop looms as borrowing costs stay elevated

Builders may cut dividend payout ratio: Bloomberg Intelligence

Source: Business Times

https://www.businesstimes.com.sg/intern ... isks-mount

[winston]

Cushman turns negative on property prices

Cushman & Wakefield cut its full-year estimate for Hong Kong's property prices, expecting them to drop up to 5 percent this year as prices of residential properties accelerated decline in the third quarter.

The real estate service firm had earlier expected local home prices to rise by 3 to 7 percent for the whole year.

The total number of residential property transactions in the third quarter was less than 9,200, down 25 percent quarter-on-quarter and 21 percent year-on-year, it said.

Meanwhile, Hysan Development (0014) expects the administration will roll out measures to support the property market, said chief operating officer Ricky Lui Kon-wai.

In other news, property prices fell more sharply in the secondary market, with a 266-square-foot two-bedroom at Ho Shun Yee Building in Yuen Long sold for HK$3.65 million after being put up for sale at HK$4.2 million at the end of last year.

Source: The Standard

https://www.thestandard.com.hk/section- ... rty-prices

[winston]

Empty homes forcing Hong Kong developers to cut prices

Source: The Star

https://www.thestar.com.my/business/bus ... cut-prices

[winston]

Developers may cut prices by 20pc to hit targets

by Himo Liu

Hong Kong's home prices are expected to decline 3 percent this year and as much as 10 percent in 2024, S&P Global Ratings says.

And local developers may offer price cuts of as much as 20 percent to achieve their sales targets, the credit rating agency said in its latest report.

S&P Global had earlier forecast a 5 percent to 8 percent rise in Hong Kong residential property prices for this year. Now, the agency anticipates that prices will either remain stagnant or potentially decrease by up to 3 percent.

Additionally, there is a projected further drop of 5 percent to 10 percent in the coming year due to weak local economic growth, rising interest rates, and an oversupply, all of which are exerting pressure on the market, it said.

S&P Global believes that Hong Kong's developers, mostly market leaders, may potentially compromise their profit margins to meet sales goals.

They might withstand property price adjustments of up to 20 percent without breaching financial triggers, it said.

Furthermore, S&P estimates that if there's a 20 percent decrease in home prices next year, the debt ratios of these developers will increase by 0.4 to 0.8 times by 2025 or 2026.

The number of home transactions in Hong Kong is expected to be around 11,000 residential units this year, according to S&P's report, much lower than the initial estimate of 15,000 to 17,000 homes.

However, with the recent reduction in property stamp duties by the government, it is anticipated that the number of residential transaction might moderately increase next year.

Source: The Standard

https://www.thestandard.com.hk/section- ... it-targets