HK - Housing 04 (Apr 16 - Jun 24)

[winston]

<Research Report>G Sachs Latest Ratings & TPs for HK Developers (Table)

Stock/ Investment Rating/ Target Price (HK$)
CK PROPERTY (01113.HK)/ CL-Buy/ 70
SWIREPROPERTIES (01972.HK)/ Buy/ 28.3
HANG LUNG PPT (00101.HK)/ Buy/ 21.1
SHK PPT (00016.HK)/ Buy/ 123.9
KERRY PPT (00683.HK)/ Neutral/ 25.7
NEW WORLD DEV (00017.HK)/ Neutral/ 9
SINO LAND (00083.HK)/ Neutral/ 13.3
HENDERSON LAND (00012.HK)/ Neutral/ 47
LINK REIT (00823.HK)/ Neutral/ 52
FORTUNE REIT (00778.HK)/ Neutral/ 8
HYSAN DEV (00014.HK)/ Sell/ 27.45
CHAMPION REIT (02778.HK)/ Sell/ 3.5

Source: AAStocks Financial News

[winston]

Hong Kong house sale sets new record price of over HK$2 billion

Property in the exclusive Peak area to be sold to Chinese property tycoon

A Shenzhen property firm owner has agreed to buy a 9,212 square-foot luxury house at 15 Gough Hill Road on The Peak on Hong Kong for about a reported HK$2.1 billion, a record price for the city and among some of the most expensive houses globally.

That selling price would represent an average of about HK$220,000 per sq ft.

Source: SCMP

http://www.scmp.com/property/hong-kong- ... k2-billion

[winston]

<Research Report>Daiwa Expects Further 5% Fall in HK Home Prices, Totalling 10% Fall in 2016

Daiwa, in its report, said Centa-City Leading Index for April and May appear to show initial signs that Hong Kong's residential property prices are stabilising (so far this year, the index has fallen by 5.5% year-to-date and is off 12.6%).

However, the broker's base case is for a further 5% price decline in 2016, totalling a 10% fall for the whole 2016.

The broker has a Positive rating on the Hong Kong property sector with top picks including CK PROPERTY (01113.HK), SHK PPT (00016.HK), and HENDERSON LAND (00012.HK) with rating Buy at target prices of $71, $131.6 and $60.8 respectively.

The broker believed Hong Kong property share prices have already priced in a meltdown scenario for the residential property market, but the broker said such a scenario is too pessimistic.

While the primary market sales transaction volume in January and February 2016 was below the level seen during the SARS outbreak, leading to fears of a price war to come, it appears this scenario has not materialised.

Over the past few months, primary market sales have been picking up, with primary market sales (as at 31 May) year-to-date at $53.8 billion, compared to $9.4 billion at end-February.

The broker expected the 2016 primary market sales can reach Daiwa's forecast of $91.8 billion.

Source: AAStocks Financial News

[winston]

Buyer of record HK$2.1b home in Hong Kong skirts stamp duty

Billionaire avoids HK$170m levy because what’s changing hands is firm that owns it, seller says

by Choi Chi-yuk

Chen Hongtian said he bought his first luxury house at Kennedy Road in Mid-Levels with HK$4 million in late 1990 or early 1991.

Tycoon bought record HK$2.1 billion home on Hong Kong’s The Peak because his HK$380m property in Mid-Levels was ‘too tiny’
8 Jun 2016


The billionaire who is buying a home on The Peak for more than HK$2 billion will avoid paying about HK$170 million in stamp duty, because what’s actually changing hands is the company that owns the property, the seller has told the South China Morning Post.

Instead, the two parties will only pay fees levied for the transfer of the company shares.

Source: SCMP

http://www.scmp.com/news/china/economy/ ... stamp-duty

[behappyalways]

投資導航：潛在供應多　憂企業裁員
供樓負擔重　香港樓市未跌夠
http://hk.apple.nextmedia.com/financees ... 2/19650623

[winston]

How mainlanders have come to dictate Hong Kong’s property game

Consider land sales last year. More than 25 percent involved mainland Chinese developers, according to the Hong Kong Economic Times.

Mind you, that did not include small and unknown property investors, many of whom have surprisingly won at land auctions in the past 12 months.

They spent more than US$42.2 billion (US$5.44 billion) in the past five years to acquire land, mostly at aggressive prices.

And now these developers, such as China Overseas Land and China Resources Land, are offloading more than 10,000 units to a saturated market.

Source: EJ Insight

http://www.ejinsight.com/20160613-how-m ... erty-game/

[behappyalways]

Sun Hung Kai Properties Offers 120% Mortgages in Hong Kong
http://www.bloomberg.com/news/articles/ ... homebuyers

[behappyalways]

Park Yoho推120%樓按　
新地拒劈價　寧借凸樓價吸換樓客
http://hk.apple.nextmedia.com/financees ... 6/19656170

Sun Hung Kai Properties Offers 120% Mortgages in Hong Kong
http://www.bloomberg.com/news/articles/ ... homebuyers

[winston]

Flat deal hits fresh peak

by Dominique Nguy and Koey Yip

The saleable square foot price record for a flat in Hong Kong now stands at HK$170,462. That comes with a 1,361ssf flat in Severn Villa on The Peak selling for HK$232 million to mainland merchant Lai Hoi-man, chairman of Horoy Qianhai International Holdings.
This deal for a flat that the previous owner bought for HK$12 million in 2003 was struck in February but came to light only yesterday.

It was also revealed just as a global index by Knight Frank showed Hong Kong home prices declining 5 percent in the 12 months to March 2016.

"Residential prices in Hong Kong have slid for seven consecutive months by a cumulative 11 percent according to provisional figures from the Rating and Valuation Department," noted Greater China director and head of research and consultancy David Ji Yanxun.

"We do not consider a sales rebound in the past two months an indication of a general market recovery. and we maintain a forecast of a 5-10 percent drop in the luxury segment and up to a 10 percent drop in mass home prices."

Source: The Standard

[winston]

In the SAR, residential prices also recovered.

Cheap offers disappeared and rents turned up again as summer vacation is always the popular period for people to move around.