HK - Housing 04 (Apr 16 - Jun 24)

[winston]

Flat prices hit 8-year low in market shocker

by Cici Cao

Road King Infrastructure (1098) yesterday launched 70 flats at Mori in Tuen Mun at an average price of HK$9,175 per square foot after discounts - an eight-year low for new home prices in the city.

The average price is also 17 percent lower than the first batch in September last year.

Source: The Standard

https://www.thestandard.com.hk/section- ... et-shocker

[winston]

<Research>Citi More Bearish on HK Property Sector, Predicting 3% Drop in Home Prices This Yr

Citi has released a research report indicating a more pessimistic view on Hong Kong's property sector compared to November last year.

The broker predicted a 3% decline in Hong Kong home prices this year given a record high supply and prolonged high interest rates that may prompt developers to accelerate price cuts to clear inventory.

Citi favored stocks with free cash flow and visible dividends per share, while companies with higher capital expenditure, debt, or retail exposure may lag behind.

The broker's top picks were HENDERSON LAND (00012.HK) and SINO LAND (00083.HK).

In addition, CK ASSET (01113.HK) 's largest non-Hong Kong or Mainland China asset portfolio might surprise the market.

Source: AAStocks Financial News

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

[winston]

<Research>HSBC Research: HK Property Recovery Takes Time; SHKP, KERRY Preferred

Headwinds such as high mortgage rates and increased completions will pose challenges to the Hong Kong real estate sector in 2025, HSBC Global Research said in its report.

Property developers are likely to focus on deleveraging.

Among local real estate stocks, SHK PPT (00016.HK) and KERRY PPT (00683.HK) were preferred by the broker, each with a Buy rating and target price of $116 and $19.

Hong Kong's real estate sector is still facing challenges, according to the report. Even though the rate-cutting cycle started in 2024, mortgage rates are still high and still above rental yield.

Prospective buyers may not have enough incentives to enter the market and tend to rent rather than buy.

Related News: UBS Survey Reveals Improved Confidence Among HK Households; HENDERSON LAND/ SHK PPT/ PCCW/ CKI HOLDINGS/ CATHAY PAC AIR/ SANDS CHINA LTD/ BOC AVIATION Preferred

HSBC Global Research noted that some developers are better positioned due to improved revenue growth prospects.

SHKP was deemed to return to profit growth on the ride of recurring rental income growth and strong property sales execution.

KERRY PPT will be nourished by profit recovery from luxury property sales in Hong Kong and Shanghai.

Source: AAStocks Financial News

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

[winston]

Hong Kong’s lived-in home prices complete third year of decline in worst run since 2003

Prices of second-hand homes fell in December, snapping a two-month rebound, and have dropped 27 per cent over the past three years

Hong Kong’s lived-in home prices fell in December to complete three straight years of setbacks, as geopolitical and inflation risks clouded the prospects for more interest-rate cuts by global central banks.

Prices in the secondary market declined 0.65 per cent last month, following gains in October and November, according to data published by the Rating and Valuation Department.

Prices weakened 7.13 per cent for the year, following a 15 per cent drop in 2023 and a 7 per cent loss in 2022.

Source: SCMP

https://www.scmp.com/business/article/3 ... pe=section

[winston]

<HK Home>S&P: Any Incident Involving Financial Woes of Big Local Developers May Trigger Chain Reaction; 2025 Home Prices May Fall 5-7%

S&P Global Ratings said in its report that the market is increasingly speculating about credit pressure on some local property developers, while NEW WORLD DEV (00017.HK) had earlier emphasized that business was as usual.

However, S&P expected that any financial distress involving a large developer could trigger a knock-on effect, dampening the financial strength of rated developers and heightening the risk to bondholders.

Hence, the prospects for Hong Kong's property market recovery could become gradually uncertain.

S&P was of the view that a high-profile default or restructuring of a large developer, will squeeze the industry's capital, and the impact will be felt across the wider industry, impacting even developers with higher credit ratings.

Under such circumstances, the rating agency predicted that the sales volume of first-hand residential properties in Hong Kong may drop to about half of the baseline forecast of 2025 (20,000 units), and property prices may inevitably fall by 5-7%.

Source: AAStocks Financial News

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

[winston]

Number of mortgages in negative equity at highest since 2003

Home prices continued to slide amid high interest rates.

The estimated number of 40,741 cases as of the end March was 6.1 percent higher than the figure for December.

They accounted for nearly 6.88 percent of the total number of mortgage borrowers.

The negative-equity loans accounted for nearly 11 percent of the total value of outstanding mortgage loans as of the end of March with the unsecured portion of debts rising to HK$16.4 billion, from HK$14.5 billion at the end of December 2024.

These cases were mainly related to bank staff housing loans or residential loans under mortgage insurance programs, which generally have a higher loan-to-value ratio,

The three-month delinquency ratio of mortgages in negative equity remained at a low level of 0.17 percent end-March.

The overall mortgage delinquency ratio stood at 0.13 percent.

Mortgage loans approved in March decreased by 5.3 percent from February to HK$24.7 billion. 

Source: The Standard

https://www.thestandard.com.hk/hk-prope ... le/301531/

[winston]

Actress Zhao Wei’s former Tsuen Wan home flops at Hong Kong auction as bidders stay away

Zhao and her husband bought a 3,494 sq ft duplex at The Westminster Terrace in Tsuen Wan in 2012 for HK$72 million

by Salina Li

A luxury duplex flat once owned by Chinese actress Vicki Zhao Wei and her former husband, Huang Youlong, did not find a buyer at an auction on Wednesday even after the current owner priced the property significantly below what the couple paid 13 years ago.

The reserve price for the property was set at HK$49 million (US$6.3 million), a 32 per cent discount to the HK$72 million Zhao and Huang paid in 2012.

The 3,494 sq ft, four-bedroom unit on the 38th and 39th floors and two car parking spaces at The Westminster Terrace in Tsuen Wan, New Territories, did not receive any bids at an auction conducted by AA Property Auctioneers.

Source: SCMP

https://www.scmp.com/business/article/3 ... pe=section