HK - Housing 04 (Apr 16 - Jun 24)

[behappyalways]

Hong Kong Home August Sales Hit 14-Month High as Mood Lifts
http://www.bloomberg.com/news/articles/ ... mood-lifts

[behappyalways]

新盤單日勁賣逾千伙
海翩滙大客7,800萬掃貨　啟德1號首批沽清
http://hk.apple.nextmedia.com/financees ... 4/19759221

[winston]

Home sales solid with deals topping 1,000

by Dominique Nguy

Developers saw solid sales over the weekend, with more than 1,000 flats sold at three major projects.

China Overseas Land (0688) said it off-loaded all 300 units it made available at its "Hong Kong Property for Hong Kong People" project - One Kai Tak - on Saturday, reaping about HK$2.6 billion.

Managing director Tony Yau Wai- kwong said the group plans to launch additional units today at the earliest.

One buyer, Xu, who has settled in Hong Kong for over 20 years, bought a two-bedroom unit flat for self-use.

"The purchase was made for my kid's education, and the prospects for the district are quite good," she said, adding that compared to Shanghai and Xuzhou, flats in Hong Kong are relatively inexpensive.

About 245 flats remain available at One Kai Tak phase one. Phase two, once launched, will offer 624 units.

Meanwhile, Chinachem Group sales director Ng Song-mou said the firm sold about 481 of 535 flats at its Tseung Kwan O project The Papillions at the weekend up to 3pm yesterday, raking in HK$3 billion.

Chinachem reportedly off-loaded about 430 flats on Saturday, making it the project with the largest number of new flat sales on its debut this year. It sold another 51 units up to 3pm yesterday.

It received about 9,200 subscriptions for the 535 flats at The Papillons. It put on an additional 155 flats yesterday, which will likely be offered during a second round of sales on Saturday.

Sun Hung Kai Properties (0016) sold all 228 units available over the weekend at its Yuen Long project Grand Yoho. The developer launched an additional 113 flats yesterday.

After two rounds, SHKP has sold about 536 units at Grand Yoho, with about another 592 flats available.

Source: The Standard

[winston]

Daiwa Raises Forecast on 2016 HK Home Prices to +1%; Up 5% More Next Year

Daiwa said in its report that the supply of Hong Kong residential properties has been declining since 4Q15 but demand continues.

It reiterated Hong Kong property market at Positive and raised the forecast on 2016 residential home prices to rising 1% yearly from dropping 10% yearly; and lifted that for next year to further rising 5% yearly.

The research house predicted Hong Kong government will not relax "spicy measures" on property market and the key now lies on whether demand exceeds new launches and drives second-hand market as a result.

Daiwa reinstated optimistic view on property developers and opined any falling share prices may be deemed as good entry point.

The research house's top picks for developers in order were as follows: SHK PPT (00016.HK), CK PROPERTY (01113.HK) and HENDERSON LAND (00012.HK) with target prices of $131.6, $71 and $60.8.

Source: AAStocks Financial News

[winston]

Revaluations boost upside for local developers

Macquarie said Sun Hun Kai Properties (0016), New World Development (0017) and Cheung Kong Property (1113) will outperform.

Even if local developers' share prices are up 23 percent year-to-date, they offer more upside with possible revaluations.

Source: Dr Check, The Standard

[behappyalways]

李嘉誠貴三成奪九肚地　
長實斥資近20億　4年首投得官地
http://hk.apple.nextmedia.com/financees ... 5/19771202

[winston]

When even Hong Kong’s super wealthy opt to rent, something is not right

Recently revealed decision by local movie stars highlights need to urgently tackle one of the city’s most pressing issues

by Tammy Tam

The couple earn tens of millions of dollars a year and could buy any luxury home they like, and the homes they rent are far from affordable for the average Hongkonger.

A massive public housing project at a Yuen Long site was delayed and allegedly scaled down.

Source: SCMP

http://www.scmp.com/comment/insight-opi ... ething-not

[winston]

Mainland investors came back to Hong Kong to buy properties

Data showed they accounted for 30 percent of property transactions worth more than HK$10 million, despite the Special Stamp Duty and Buyer's Stamp Duty for non-residents.

Therefore, it wasn't surprising to see Sun Hung Kai Properties (0016) easily sell more than 1,000 new units at its Grand Yoho project in Yuen Long, at an average price of about HK$15,000 per saleable square foot.

Local property shares are likely have further upside.

Source: Dr Check, The Standard

[winston]

Small flat frenzy spills into Hong Kong’s luxury homes sector

Developers are pushing larger, high-end homes as the market gains confidence from strong mass-residential sales

The market has digested more than 3,100 new flats, mostly in mass-residential developments, so far this month.

The number of deals costing more than HK$10 million jumped 38 per cent to 199 in the first 11 days of this month compared to the same period in July

Source: SCMP

http://www.scmp.com/property/hong-kong- ... mes-sector

[winston]

not vested

Morgan Stanley Sees Hong Kong Property Developers’ Rally To Continue

By Shuli Ren

In the last year, there have been a lot of talk on a Hong Kong property market crash. But things started to look better in the spring, when property transaction volume picked up and home prices grew again.

Hong Kong’s real estate developers also rallied. But so far, analysts upgrades are only talking about stabilization of the Hong Kong market and cheap valuations.

Morgan Stanley is going one step further, saying Hong Kong’s developers are in a mid-cycle rather than a down-cycle, and their stocks have more room to grow.

Specifically, the bank thinks office rental and residential property prices will go up by 5% each in 2017, similar to its assumptions on 2016. In the first eight months of 2016, residential prices in Hong Kong rose 1%.

Here is why:

First, Hong Kong housing has become more affordable as prices declined about 15% from September 2015 to March 2016.

Second, Morgan Stanley simply does not see a hawkish Fed and forecasts a lower-rates-for-longer world. In September, banks further cut the home mortgage rate to 1.4% plus Hibor, the fourth cut this year.

So the effective mortgage interest rate will be around 1.7%, still attractive compared to over 3% residential rental yield. “The low interest rate environment favors investors to invest in the physical market,” wrote analyst Praveen Choudhary.

Third, the property developers are still not expensive. The industry is trading at an average 40% discount to its net present value, still well below its long-term average of 24% discount. The sector is trading at 0.7 times forward book, below long-term average of 0.9 times.

Sun Hung Kai Properties (16.Hong Kong), Hong Kong Land (H78.Singapore) and Link REIT (823.Hong Kong) are Morgan Stanley’s top picks, followed by Kerry (683.Hong Kong), Cheung Kong Property (1113.Hong Kong), Sino Land (83.Hong Kong), Wharf Holdings (4.Hong Kong), and Champion REIT (2778.Hong Kong).

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... -continue/