2Q 2011 | THe knowledge
research & forecast report
hong kong residential market c o l l i e r s i n t e r n at i o n a l
|
H ON G K ON G
Buying Spree Slows Due to rising mortgage rates, further lowering in loan-to-value (LTV) ratio, and growing concerns over the re-launch of Home Ownership Scheme (HOS) flats, sales activity of the Hong Kong residential market experienced further slowdown in 2Q 2011.
market indicators ForEcast overall performance New supply Tenant Demand Incentives rents capital values yields
www.colliers.com/hongkong
In the luxury segment, the slowdown in sales activity was yet to be fully reflected in the market. In the top-end residential market (referring to sales transaction of properties at over HK$100 million), the number of sales transactions recorded a strong growth of 50% QoQ over the same period. This indicated that the super-luxury residential segment, with properties sold at over HK$100 million, were less cost-sensitive than the overall market. One of the driving forces for the upbeat luxury residential market was attributed to the strong demand from wealthy Mainland Chinese buyers, who represent about 40% of total buyers in the top-end residential segment. During 2Q 2011, prospective property buyers faced increasing difficulties in mortgage financing, attributable to higher down payments. On 10th June 2011, The Hong Kong Monetary Authority (HKMA) issued new guidelines to banks in further lowering the LTV ratio. Certainly, this would pose a consolidation on the number of residential sales transactions, in the hope of slowing the prevailing upward price spiral. Despite a mismatch between corporate housing budgets and landlord’s asking rents, landlords remained firm in rental negotiations, and some were aggressive in rising asking rents. Tenants who could not justify the widening gap between budgets and rents turned to downgrading flat sizes, or moving away from the traditional luxury residential areas to other districts. The demand-supply imbalance, coupled with inflationary pressure, continued to drive rents upwards, with the average luxury residential rents rising by 4.15% QoQ, to HK47.30 per sq ft per month as of May 2011, after rising by 3.62% QoQ in the previous quarter. Looking ahead, both residential sales transaction volume and prices are anticipated to slow in the near term on the back of further lowering in LTV ratio and tightening measures imposed by local banks. Interest rate hikes in late 2011 or 1Q 2012 will potentially lead to further consolidation in the residential market. However, luxury residential prices do not expect a dramatic decline, given the tight residential supply situation.
hong kong | 2Q 2011 | residential
Sales Market Slowing Sales Activity Due to rising mortgage rates, further lowering in loan-to-value (LTV) ratio, and growing concerns over the re-launch of Home Ownership Scheme (HOS) flats, sales activity of the Hong Kong residential market experienced further slowdown in 2Q 2011. In the luxury segment, the slowdown in sales activity was yet to be fully reflected in the market. During the three-month period ending May 2011, the number of luxury residential sales transactions in the three traditional luxury districts of The Peak, Mid-levels and South Side, that sold for over HK$20 million, increased by 11% QoQ. In the top-end residential market (referring to sales transaction of properties at over HK$100 million), the number of sales transactions recorded a strong growth of 50% QoQ over the same period. This indicated that the super-luxury residential segment, with properties sold at over HK$100 million, were less cost-sensitive than the overall market. One of the driving forces for the upbeat luxury residential market was attributed to the strong demand from wealthy Mainland Chinese buyers, who represent about 40% of total buyers in the top-end residential segment. During 2Q 2011, prospective property buyers faced increasing difficulties in mortgage financing, attributable to higher down payments. On 10th June 2011, The Hong Kong Monetary Authority (HKMA) issued new guidelines to banks in further lowering the LTV ratio. Certainly, this would pose a consolidation on the number of residential sales transactions, in the hope of slowing the prevailing upward price spiral. In anticipation of higher price volatility, some banks started to adopt a more stringent stress test to gauge borrowers’ ability to survive a potential outflow of deposits, and valuations that were more conservative, resulting in some cases that saw valuations at 10% to 15% below asking prices. This in turn would potentially affect the growth in residential sales activity, especially from end-user demand. In terms of financing, major local banks raised their mortgage rates based on the Hong Kong interbank offered rates (HIBOR). For example, HSBC announced raising its HIBOR-based mortgage interest rate (H) from H plus 1.0% - 1.5% to H plus 1.5% - 2.0%, while the maximum mortgage rate is set at Prime (P) minus 2.65%. According to the Hong Kong Monetary Authority, one-month HIBOR averaged at 0.23%. Despite the rate increase, the HIBOR-based mortgage interest rates were still substantially cheaper than those prime rate-based rates, the lowest of which was 1.7%. HIBOR-based mortgages account for 90% of the overall mortgage market.
Source: Hong Kong Monetary Authority
p. 2
| Colliers International
hong kong | 2Q 2011 | residential Further Lowering LTV Ratio To strengthen risk management in residential mortgage lending business, the Hong Kong Monetary Authority (HKMA) issued new guidelines to banks on lowering LTV ratio, with immediate effect from 10th June 2011. The new measures reflected the government’s determination to moderate property prices in view of the housing boom cycle that continues to evolve. HKMA announced that: (I) The maximum LTV ratio for residential properties valued HK$10 million or above will be lowered to 50%; (II) The maximum LTV ratio for residential properties valued between HK$7 million and HK$10 million will be lowered to 60%, with the maximum loan amount capped at HK$5 million. (III) The maximum LTV ratio for residential properties valued below HK$7 million will be 70%, with the maximum loan amount capped at HK$4.2 million. LTV Ratio for residential properties LTV Ratio for residential properties As of June 2011 As of November 2010 Transaction LTV Transaction LTV HK$10 m or above
50%
HK$12 m or above
50%
HK$7-10 m 60% HK$8-12 m 60% Max. loan amount: HK$5 m Max. loan amount: HK$6 m Below HK$7 m 70% Below HK$7 m 70% Max. loan amount: HK$4.2 m Max. loan amount: HK$4.8 m Source: Hong Kong Monetary Authority
At the same time, Hong Kong Mortgage Corporation Limited (HKMC) announced lowering of the cap value of property under the Mortgage Insurance Programme (MIP) from HK$6.8 million to HK$6 million. As a result, for mortgage loans with MIP coverage with the 70% LTV threshold, the maximum loan amount will be reduced from HK$6.12 million to HK$5.4 million. For mortgage loans with MIP coverage within 60% LTV threshold, the maximum loan amount will be reduced from HK$6 million to HK$5 million. The lowering in LTV ratios introduced by HKMA and HKMC will in turn affect growth in residential sales activity, especially that from end-user demand, in the hope of slowing the prevailing upward price spiral.
Lowering LTV Ratio targeting non-local Buyers HKMA put new limits on home mortgages not only for local property buyers, but also foreign investors. According to HKMA, (I) If the principal income of the mortgage loan applicant is derived outside Hong Kong, the applicable maximum LTV ratio will be lowered by at least 10 percentage points regardless of property types or values; (II) The maximum LTV ratio for properties under the net worth-based mortgage will be lowered from 50% to 40%. In addition, the MIP will not be available to applicants whose principal income is not derived from Hong Kong. Further lowering in LTV ratios and the unavailability of MIP to non-local borrowers are not expected to slow the buying spree, as cash-rich Mainland Chinese investors, who are blamed for driving up Hong Kong’s home prices, do not need mortgages. The demand for credit in Hong Kong had been boosted by higher interest rates in Mainland, as Beijing tightens monetary policy to tackle inflation, particularly rising food and property prices. The tightening liquidity in Mainland China, coupled with the expectation of higher interest rates in the U.S., will lead to an outflow of deposits in Hong Kong that will pose a downside on residential price growth.
Colliers International |
p. 3
hong kong | 2Q 2011 | residential Record Breaking Luxury Prices Luxury Residential prices (By Sub-Markets) district
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
2Q 2011 (% QoQ)
The Peak
$25,063
$26,875
$28,050
$29,313
$30,938
$32,413
4.8%
Mid-levels
$11,443
$11,803
$12,000
$12,725
$13,188
$13,663
3.6%
South Side
$17,338
$17,713
$18,613
$19,288
$19,538
$19,925
2.0%
Overall
$16,058
$16,783
$17,391
$18,189
$18,806
$19,520
3.8% Source: Colliers
Supported by the tight luxury residential supply, the overall luxury residential prices edged up further by 3.8 % QoQ, to HK$19,520 per sq ft, as of May 2011. This had already surpassed the previous peak in Mid-2008 by 30%, in which residential properties on The Peak displayed the strongest growth of 49%.
Source: Colliers
The Hong Kong residential market had been in a robust trend, with houses or individual residential developments registering record high levels. One of the driving forces for the robust luxury residential price growth was attributed to the strong demand from wealthy Mainland Chinese buyers, who represented about 40% of total buyers in the top-end luxury residential segment. Prominent transactions for 2Q 2011 were highlighted by the sale of an 8,302-sq ft house at No. 10 Pollock’s Path for HK$800 million, achieved the highest global unit price of HK$96,362 per sq ft. The price shattered the previous record at No. 6 Stanley Beach Road, which sold in March 2011 for HK$328.8 million, or a unit price of HK$62,900 per sq ft. However, the record price transaction does not fully reflect the property market outlook, being just a single one-off sales transaction.
p. 4
| Colliers International
hong kong | 2Q 2011 | residential
major residential sales transactions Month
Property
GFA (sq ft)
Price (HK$ m)
Unit Price (HK$ / sq ft)
The Peak Mar-11
Montebello, Unit 5
3,070
$72.00
$23,453
Apr-11
Guildford Court, Block B, 5/F, Unit 6
2,478
$62.00
$25,020
Apr-11
Mountain Lodge, 7/F, Flat A
2,600
$60.60
$23,308
Apr-11
3 Plunkett's Road, House A
7,000
$399.80
$57,114
May-11
Cameron House, 7/F, Flat A
2,847
$99.88
$35,083
May-11
Sunshine Villa, House 6
3,500
$138.89
$39,683
May-11
No. 8 Pollock's Path
11,222
$580.00
$51,684
May-11
Skyhigh, House 10
8,302
$800.00
$96,362
May-11
Black's Link 38, House D
4,750
$230.00
$48,421
Mar-11
Celestial Garden, 12/F, Flat B
2,363
$60.00
$25,391
May-11
Grand Garden, Block 1, 16/F, Flat A
3,054
$69.00
$22,593
Mar-11
Somerset, 8/F, Flat C
3,099
$90.00
$29,042
Mar-11
Regalia Bay Phase 1, House C12
4,212
$73.28
$17,398
Mar-11
Regalia Bay Phase 1, House A8
4,212
$76.80
$18,234
Mar-11
Regalia Bay Phase 2, House C27
4,212
$70.00
$16,619
Mar-11
Redhill Peninsula - Palm Drive, House 53
2,901
$62.18
$21,434
Mar-11
Redhill Peninsula - Cedar Drive, House 72
3,055
$73.00
$23,895
Mar-11
6 Stanley Beach Road, House 5
4,242
$212.50
$50,094
Mar-11
6 Stanley Beach Road, House 1
5,221
$328.80
$62,976
Mar-11
Residence Bel-Air Phase 5, Villa 6
9,254
$280.00
$30,257
Mar-11
Residence Bel-Air Phase 5, Villa 21
6,329
$170.88
$27,000
Apr-11
Woodgreen Estate, G-01/F, Unit B11
2,219
$60.50
$27,265
Apr-11
Belgravia, 23/F, Flat A
2,390
$77.50
$32,427
Apr-11
Belgravia, 25/F, Flat B
2,790
$85.61
$30,685
Apr-11
56 Repulse Bay Road, House 2
3,185
$98.00
$30,769
Apr-11
Grosvenor Place, 10/F
2,809
$83.00
$29,548
Apr-11
Fortuna Court, 10/F, Flat A
2,857
$88.80
$31,082
Apr-11
Regalia Bay, Phase 1, House C6
4,212
$72.00
$17,094
Apr-11
Hillgrove House, House B8
2,680
$54.50
$20,336
Apr-11
Redhill Peninsula - Cedar Drive, House 102
3,020
$83.50
$27,649
Apr-11
Redhill Peninsula - Cedar Drive, House 162
Apr-11
11-12 Headland Road, House 12B
Apr-11
South side
3,339
$88.00
$26,355
10,023
$511.17
$51,000
56 Repulse Bay Road, House 47
4,286
$223.80
$52,217
Apr-11
Belgravia, 29-30/F, Flat B
3,845
$213.00
$55,397
Apr-11
Rosecliff, House 1
3,209
$173.00
$53,911
May-11
Belgravia, 28/F, Flat A
2,390
$81.20
$33,975
May-11
Belgravia, 28/F, Flat B
2,790
$98.80
$35,412
May-11
56 Repulse Bay Road, House 11
3,173
$117.28
$36,962
May-11
Le Palais, House 27
4,372
$110.00
$25,160
May-11
Shouson Peak, House 17C
4,074
$180.80
$44,379
May-11
Hong Kong Parkview, Tower 9, 5/F, Unit 59
2,628
$41.50
$15,791
May-11
33 Tung Tau Wan Road
6,700
$300.00
$44,776
May-11
45 Island Road, House 6
2,705
$75.00
$27,726
May-11
Turtle Cove, House 2
4,002
$135.00
$33,733
Colliers International |
p. 5
hong kong | 2Q 2011 | residential
major residential sales transactions Month
Property
GFA (sq ft)
Price (HK$ m)
Unit Price (HK$ / sq ft)
mid-levels May-11
Clovelly Court, Block 1, 31/F, Flat A
2,809
$87.00
$30,972
Mar-11
Clovelly Court, Block 1, 3/F, Flat B
2,722
$58.00
$21,308
Mar-11
Grenville House, Block A,B, 10/F, Flat B
3,400
$88.00
$25,882
Mar-11
Estoril Court, Block 02, 11/F, Flat C
3,347
$55.00
$16,433
Mar-11
Estoril Count, Block 01, 14/F, Flat A
3,347
$56.80
$16,970
Mar-11
Dynasty Court, Tower 1, 27/F, Flat A
2,691
$76.80
$28,540
Apr-11
The Albany, Block A, 23/F
2,549
$80.00
$31,385
Apr-11
Trafalgar Court, 22/F, Flat A
3,008
$79.00
$26,263
Apr-11
Evergreen Villa, Block C, 14/F, Unit 2
2,518
$52.50
$20,850
Apr-11
39 Conduit Road, 66/F, Flat A
5,636
$360.70
$63,999
Apr-11
Azura, 49/F, Flat A
1,665
$51.57
$30,973
Apr-11
Azura, 50/F, Flat A
1,665
$52.70
$31,654
May-11
47A Stubbs Road, 2/F, Flat A
2,400
$55.00
$22,917
May-11
The Albany, Block A, 19/F
2,549
$79.00
$30,993
May-11
The Mayfair, 28/F, Flat B
2,872
$91.80
$31,964
May-11
Chantilly, 5/F, Flat B
3,600
$75.85
$21,071
May-11
Chantilly, 2/F, Flat B
3,600
$105.15
$29,208
May-11
Century Tower II, 22/F
3,663
$128.00
$34,944 Source: Colliers
p. 6
| Colliers International
hong kong | 2Q 2011 | residential
Leasing Demand Sustainable Rising Demand The market continued to experience sustainable rising occupation demand in 2Q 2011. Newcomers from the banking and finance sectors remained the key contributors to total expatriate arrivals. Meanwhile, the increasing number of expatriate arrivals from non-finance companies, such as insurance, was observed. More expatriates in the middle management and senior levels started to arrive during 2Q 2011. This was partly due to expatriate families anticipating the opening of the school year after the summer holidays.
Traditional luxury residential district
Source: Colliers
As of end-2Q 2011, budgets for staff at junior levels ranged from HK$20,000 to HK$60,000 per month, middle management levels with a budget from HK$60,000 to HK$150,000 per month, and senior executives from HK$150,000 and above per month.
Rental Level Surpassed Previous Peak Housing continues to become less affordable for expatriates in Hong Kong. Overall, luxury residential rents stood at a record high, surpassing the previous peak in mid-2008 by 2.2%, thanks to the relentless demand from expatriates for large-sized flats or houses. For example, rents on The Peak showed a remarkable growth of 14%, with rents averaging HK$66.6 per sq ft in May 2011.
Lack of International Schools DO NOT Drag Rents Down The society recently addressed the issue of the government’s failure to provide enough international school places on Hong Kong Island. For the whole territory, the English Schools Foundation apparently had a waiting list of about 5,000 candidates. The lack of access to quality international schools and limited school places, together with inflated housing rentals, had deterred senior employees of multinational firms from relocating to Hong Kong. Instead, these people had been considering opportunities in other financial centres in Asia, such as Singapore. This would serve to de-emphasize Hong Kong and increase Singapore’s regional importance. The residential leasing market experienced longer negotiations in making deal commitments, as expatriate families faced difficulties in securing international school places for their children. They encountered long waiting lists at every school, and were being told to try for the 2012 academic year. Rather than jeopardize their children’s education, some opted to commute from overseas until the family had secured school places in Hong Kong. Several expatriates had been taking longer lease terms in serviced apartments of six to twelve months or more, until their children were guaranteed a school place, before committing to leasing standard residential properties with the arrival of the remaining family members. But so far the delay in confirmation to rent standard homes from this batch of expatriates did not slow overall demand for housing. Demand is still outstripping supply. Hong Kong offers bright prospects for growth in businesses due to its geographical proximity to inland Mainland cities. The continual inflow of expatriates, coupled with limited luxury residential properties available for lease, gave strong support to underpin the luxury residential leasing market.
Colliers International |
p. 7
hong kong | 2Q 2011 | residential
Rental Trend Luxury Residential Rentals (By Sub-Markets) 1Q 10
2Q 10
3Q 10 4Q 10 1Q 11 (HK$ / sq ft / month)
2Q 11
2Q 2011 (% QoQ)
The Peak
$50.13
$52.15
$54.31
$56.96
$60.88
$66.55
9.3%
Mid-levels
$37.54
$39.97
$41.90
$43.20
$44.97
$45.79
1.8%
district
South Side
$40.81
$42.29
$44.18
$45.32
$46.55
$48.48
4.1%
Overall
$39.08
$40.93
$42.60
$43.83
$45.42
$47.30
4.1% Source: Colliers
Despite a mismatch between corporate housing budgets and landlord’s asking rents, landlords remained firm in rental negotiations, and some were aggressive in rising asking rents. Tenants who could not justify the widening gap between budgets and rents turned to downgrading flat sizes, or moving away from the traditional luxury residential areas to other districts, such as Kennedy Town or Pokfulam. The demand-supply imbalance, coupled with inflationary pressure, continued to drive rents upwards, with the average luxury residential rents rising by 4.15% QoQ, to HK47.30 per sq ft per month as of May 2011, after rising by 3.62% QoQ in the previous quarter.
Source: Colliers
With increasing arrivals of expatriates at middle management and senior levels, demand for houses and large-sized apartment units in the prestigious locations of Hong Kong Island remained strong, given the reducing availability of properties for lease. For example, a 3,000-sq ft house in Redhill Peninsula, Tai Tam, was leased for HK$128,000 per month (HK$42.67 per sq ft per month), and a 2,095 sq ft house in Burnside Villa, Repulse Bay, with a monthly rental of HK$115,000 (HK$54.89 per sq ft per month). major residential LEASE transactions
District
GFA (sq ft)
Rental (HK$ / month)
Unit rental (HK$ / sq ft / month)
Branksome Grande
Mid-Levels
3,030
126,000
41.58
Dynasty Court
Mid-Levels
2,691
121,000
44.96
Mar-11
Burnside Villa
South Side
2,095
115,000
54.89
Mar-11
Stanley Green
South Side
2,200
100,000
45.45
Apr-11
Banoo Villa
South Side
2,176
106,000
48.71
May-11
Palm Drive, Redhill Peninsula
South Side
3,000
128,000
42.67
Month
Property
Mar-11 May-11
Source: Colliers
p. 8
| Colliers International
hong kong | 2Q 2011 | residential
Serviced Apartment Market Demand for Serviced Apartments Remains Upbeat Leasing activities in the serviced apartment market remained upbeat in 2Q 2011. Confirmed arrivals were largely junior executives from the banking and finance industry, while the arrival of an increasing number of expatriate families was observed during the quarter. Serviced apartments continued to attract a batch of newly arrived expatriates for temporary stay before committing to a permanent residence or those in contract-based for short-term accommodation. The sustained rise in the number of expatriate arrivals at the entry level, largely from the banking and finance industries, prompted continuing strong demand for studio and onebedroom units in 2Q 2011. Meanwhile, the serviced apartment market also saw sustainable demand for two-to-three-bedroom units with the arrivals of middle management level and senior expatriates. This was partly due to expatriate families anticipating the opening of school year after the summer holidays. Various tenants engaged to longer lease terms of six months or more before committing to traditional standard leases, as they wait for their children to be guaranteed a school place, before committing to lease standard residential properties with the arrival of the remaining family members.
Short leases account for 78%
Oakwood Apartments, Mid Levels
Source: Oakwood Asia
Our research statistics indicated that the number of short leases (i.e. with terms of six months or less) constituted 78% of the total during the three-month period ending May 2011, compared with the long-term average of 67%. Meanwhile, the number of long leases (i.e. with terms of six months or longer) concluded during the same period accounted for 22% of the pie, below the long-term average of 33%. In general, the sustained demand for serviced apartment units prompted the continual increase in serviced apartment rents in both centralised and decentralised locations, with average rent rising further by 2.4% QoQ as of May 2011.
Studio/One-bedroom Suites Remains the Most Favoured Serviced apartments in the low-tier group (studio and one-bedroom unit), with rentals ranging from HK$10,000 to HK$20,000 per month, in non-central business districts (non-CBDs), displayed the strongest growth of 5.4% QoQ as of May 2011. This was due to the positive spillover effect from CBDs to non-CBDs, supported by the continually rising number of junior executive arrivals from the banking and finance industry.
Colliers International |
p. 9
hong kong | 2Q 2011 | residential
Investment Market Overall luxury residential yield of the three traditional luxury residential districts stayed relatively steady, increasing marginally from 2.72% in February 2011 to 2.73% at the end of May 2011. Regarding land sales, a total of six residential sites were sold in the government’s public land auction during 2Q 2011. Two of the transacted sites are located in the traditional luxury residential districts of Mid-levels.
Source: Colliers
Auction
Lot No.
Location
Date
Maximum GFA
Lump Sum
Accommodation Value
(sq ft)
(HK$ million)
(HK$/sq ft)
Purchaser
27 Apr
KIL 11184
Ko Shan Road, Hung Hom, Kowloon
153,516
$1,525
$9,934
Nan Fung & Wing Tai Properties (50:50)
12 May
IL 8963
Stubbs Road, Hong Kong
180,834
$4,490
$24,829
SHKP
12 May
NKIL 6498
Begonia Road, Yau Yat Chuen, Kowloon
36,780
$579
$15,742
China Overseas
12 May
Lot No. 2086 in DD No. 105
Ngau Tam Mei, Yuen Long, New Territories
101,095
$662
$6,548
Cheung Kong
9 Jun
IL 8949
Borrett Road, Hong Kong
435,292
$11,650
$26,764
Cheung Kong
9 Jun
Lot No. 2129 in DD No. 121
Ping Kwai Road, Ping Shan, Yuen Long, New Territories
65,401
$300
$4,587
Cheung Kong
Source: Lands Department, HKSAR Government
Despite all the media focus on the Borrett Road site in the hope of breaking the all-time land price record, the site had brought disappointment to the market. The auctioned price was at the lower bound of market consensus, where the market was overly optimistic on estimates. Cheung Kong snapped up the site for HK$11.65 billion, or an accommodation value of HK$26,764 per sq ft, which was 22.6% above the opening bid. This reflected that developers remained cautious towards market outlook, considering the underlying risks of an interest rate increase. In addition, Sun Hung Kai Properties snapped up the former Lingnan College site on Stubbs Road for HK$4.49 billion, or an accommodation value of HK$24,829 per sq ft, the third highest accommodation value paid in land sale. This reflected developers’ eagerness to replenish their land banks.
p. 10
| Colliers International
hong kong | 2Q 2011 | residential
Supply Further to the land sale of the Stubbs Road and Borrett Road sites, both developments upon completion will bring a total of about 220 large and luxury residential units into the market in 20142015 at the earliest. This does not ease the current tight supply situation in the luxury residential market. As of May 2011, the overall luxury residential supply between 2011 and 2013 was 56% below its long-term average of 549 units.
projected new supply of luxury residential units in 2011 Development
House*
Apartment*
Developer / Owner
No. of units
Status
the peak
54 Mount Kellett Road
3 @2-s
-
Manhattan Group
3
Under Construction
59 Mount Kellett Road
1 @ 2-s
-
Wincord Investment Ltd
1
Under Construction
3 Black's Link
2 @ 3-s
-
Fortune Link Development Ltd
2
Under Construction
37 Severn Road
3 @ 3-s
-
SHKP
7
Under Construction
4 @ 3-s south side
43 Beach Road
-
2 @ 3-s
Silver Mark Ltd
4
Completed in Feb 2011
1 @ 3-s
-
Infinitive Ltd
1
Under Construction
2 Belleview Drive
1 @ 4-s
-
Emperor Group
1
Under Construction
18 Carmel Road (Stanley)
1 @ 4-s
-
Horizon East Investment Ltd
1
Under Construction
-
1 @ 48-s
Wing Tai Asia
82
Under Construction
4A South Bay Road
mid-levels
9A-H Seymour Road, 5, 6, 6A, 7 & 7A Ying Fai Terrace
Source: Colliers
* No. of block @ No. of storey
Source: Colliers
Colliers International |
p. 11
hong kong | 2Q 2011 | residential
Source: Colliers
Source: Colliers
Source: Colliers
p. 12
| Colliers International
hong kong | 2q 2011 | Residential
Market Outlook Looking ahead, both residential sales transaction volume and prices are anticipated to slow in the near term on the back of further lowering in LTV ratio and tightening measures imposed by local banks. Interest rate hikes in late 2011 or 1Q 2012 will potentially lead to further consolidation in the residential market. However, luxury residential prices do not expect a dramatic decline, given the tight residential supply situation. The overall Luxury residential price growth will narrow to 5% over the next 12 months. In the leasing market, the positive sign of the prevailing high level of occupancy rate of serviced apartment units for short-term stay (i.e. a lease term of below six months) indicates an optimistic outlook, since serviced apartment rental is the first stop for expatriates moving into the market. Despite the rental upsurge, the increasing skills shortage of senior local executives for certain roles will lead to continuing hiring from overseas, on the back of a growing number of business opportunities with overseas companies, who prefer to set up their business in Asia and Hong Kong. The sustained rising inflow of expatriates from various industry sectors, together with escalating inflationary pressure, will continue to fuel the leasing market. The average luxury residential rents expect a double-digit growth of 15% over the next 12 months.
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12,500 professionals
Colliers International (Hong Kong) Limited: Suite 5701 Central Plaza 18 Harbour Road Wanchai Hong Kong tel FAX
+852 2828 9888 +852 2828 9899
Company Licence No: C-006052
Richard Kirke Managing Director | Hong Kong tel +852 2822 0699 FAX +852 2107 6047 Email
[email protected]
Simon Lo Executive Director | Research & Advisory | Asia tel +852 2822 0511 FAX +852 2868 5275 Email
[email protected]
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