HK - Housing 04 (Apr 16 - Jun 24)

[winston]

<Research Report>Daiwa: HK Developer Sell-off Offers Chance to Accumulate; Reaffirms Positive View on Sector

While Daiwa saw challenges for the property sector after recent protests, it believed there is still no need to be worried over the impact of protests on Hong Kong developers.

The 16-year Hong Kong property market up-cycle was unusual, already exerting pressure on certain areas.

The broker expected more visible strains as the property market slows down, adding there are still buffers in the market. The 2019 property market forecast was revised by 1%-3%.

Reaffirming its positive view on the Hong Kong property sector, Daiwa regarded the sudden sell-off as a chance to accumulate developers, particularly those delivering rising yields.

Source: AAStocks Financial News

[behappyalways]

Hong Kong and Singapore, so similar yet so different – it’s all about housing, money and politics
https://www.scmp.com/comment/opinion/ar ... -all-about

[winston]

HK Properties
a. Vacancy tax
b. 9000 vacant apartments
c. CLSA, UBS and Citi - Prices may drop 10% to 15% by end 2019
d. Slowing Economy / Trade War
e. Depreciating Yuan
f. Weak Stock Markets
g. Protests
h. Migration

[behappyalways]

Beijing piles pressure on Hong Kong developers, calling on government to seize land being ‘hoarded for profit’
https://www.scmp.com/news/hong-kong/hon ... and-profit

[behappyalways]

Hotel rates cheaper than flat rents in Hong Kong
https://www.youtube.com/watch?v=tHfuUiS41Mg

[winston]

<Policy Address>Carrie Lam: To Revisit 300 Pieces of Land with 300 Hectares, Developed into Residential, Govt Facilities

The latest Policy Address specified that as custodian of “Government, Institution or Community” (GIC) sites, the Government should strive to optimise the use of these sites under the policy objective of identifying land to increase housing supply.

The Government will review over 300 GIC sites with a total area of some 300 hectares currently earmarked for standalone public facility, and put forward concrete proposals for sites with no development plan, including developing multi-purpose public facility buildings under the “single site, multiple use” model, developing residential projects and public facilities under a mixed development mode, or retaining them for specific government facilities.

Source: AAStocks Financial News

[winston]

<Policy Address>Carrie Lam: Welcomes Developers to Offer or Lend Land at Nil Cost

Chief Executive Carrie Lam stated in Policy Address that individual property developers have recently announced that they would provide or lend land for housing development and other public welfare uses at no cost, as a proactive act of shouldering a share of social responsibility.

The Government welcomes such act, but this will not affect the Government’s full strength in taking forward various land supply measures, mentioned Lam.

She appealled to all property developers to support the Government in developing their land for public housing or SH through the application of the Lands Resumption Ordinance and LSPS to make active contributions towards easing the housing problem of Hong Kong people.

Source: AAStocks Financial News

[winston]

Carrie Lam: DEVB to Unveil 'Land Sharing Pilot Scheme' Details, Open for Application Early-20

Chief Executive Carrie Lam released the Policy Address, saying the Development Bureau will soon announce details of the Land Sharing Pilot Scheme (LSPS) along the policy direction outlined in last year’s Policy Address.

Views of stakeholders will be gauged with the target of accepting applications early next year.

Unlike other development modes of Government-led planning and Government-initiated land resumption, LSPS will tap market force in planning and construction.

The Government hopes that this will release as soon as possible private lots with consolidated ownership but not yet covered by government planning and study, so as to speed up short- and medium-term housing supply.

Source: AAStocks Financial News

[winston]

Carrie Lam: Speeds up 3 Categories of Land Resumption for Public Homes, Covering 450 Hectares of Brown Land

Chief Executive Carrie Lam, in her Policy Address, said the government will expedite its planning work and resume three types of private land wholly for public housing (including PRH, GSH, HOS), SH and related infrastructure development by invoking the Lands Resumption Ordinance and other applicable ordinances:

1) about 450 hectares of brownfield sites in the New Territories may have development potential but have not been covered by new development areas (NDAs) or other development projects. These sites are mostly private land larger in size and located nearer to existing new towns and major highways, including brownfield sites in Ping Shan and Lam Tei.

The Planning Department will accord priority to the study of 160 hectares brownfield sites that are closer to existing infrastructure and assess their suitability for public housing development, with a view to commencing follow-up technical assessment by the end of this year.

Rezoning government land for housing has been one of the major sources of housing land supply in recent years. However, my proposal to adopt a more focused approach for rezoning private land for public housing development, and then exercising public power to resume private land for public purpose, is indeed a breakthrough in thinking;

2) to resume private land which is zoned for high-density housing development in statutory outline zoning plans but without any development plans due to various reasons (e.g. fragmented ownership, infrastructural constraints) and assessed to be suitable for public housing development; and

3) to resume urban private land in Cha Kwo Ling Village, Ngau Chi Wan Village and Chuk Yuen United Village suitable for high-density housing development, with a view to expediting the development of these seven hectares of urban sites and rebuilding a new community mainly comprising public housing.

The living environment of residents in the squatter areas will also be improved with compensation and rehousing to be provided in accordance with the prevailing policy.

Source: AAStocks Financial News

[winston]

<Policy Address>Carrie Lam: Noted of Resuming 700 Hectares of Private Land; 400 Hectares To Recover in Next 5 Yrs

Chief Executive Carrie Lam stated in Policy Address that apart from the additional land resumption projects mentioned before, a steady stream of land resumption projects under the Lands Resumption Ordinance is in the pipeline.

With works of Kwu Tung North/Fanling North NDAs just commencing, upcoming large-scale development projects in Hung Shui Kiu/Ha Tsuen and Yuen Long South, as well as a couple of public housing and other public works projects in the pipeline, the Government is given to understand that about 700 hectares of private land will be resumed, of which some 400 hectares is expected to be resumed in the next five years, significantly more than the 20 hectares resumed in the past five years.

Source: AAStocks Financial News