Executive Council Said to Approve Vacancy Tax and More Hong Kong Real Estate Headlines

Leading today’s real estate news in Greater China’s commercial powerhouse, Hong Kong’s executive council has reportedly approved a plan for a tax on vacant flats, as city leaders scramble to demonstrate concern over rising home prices. Also in the headlines, once humble sheds in Kowloon East and the New Territories are now commanding princely prices, and Knight Frank points out that housing costs in the city have been rising for 22 straight months. All these stories and more await you, if you just keep reading.

Executive Council Passes Vacancy Tax Plan

The top advisers to Hong Kong leader Carrie Lam Cheng Yuet-ngor on Thursday approved several new policies aiming to relieve the city’s housing crisis, South China Morning Post has learned.

The package includes: unlinking the pricing of government-subsidised housing from market rates; introducing a vacancy tax on newly built but unsold flats; and building affordable housing on five prime sites originally reserved for private developers to build luxury homes. Read more>>

Kwun Tong Industrial Building Hits the Market for HK$21M

The Kwun Tong section of Kowloon East is fast becoming a favored business location for cost-conscious office occupiers and the owner of a floor in an industrial building at 27 Tai Yee Street is hoping to cash in on the area’s rebirth as a commercial destination.

A mid-level floor in the 39-year-old Hongsheng Industrial Building is being put on the market for HK$20.8 million ($2.7 million), according to representatives of local agency Ricacorp Properties, at a price that works out to HK$6,303 per square foot for the property near the Ngau Tau Kok MTR station. Read more>>

Tsuen Wan Industrial Space Up for Sale for HK$32M

A pair of floors in a Tsuen Wan industrial building are being put on the market for HK$32 million ($4 million) as the town in Hong Kong’s western New Territories continues to gain favor with investors.

Representatives of Midland Realty are currently touting the 4th and 5th floors in the building at 9 Haisheng Road in Tsuen Wan for a deal that would work out to HK$5,200 per square foot, for the 6,100 square foot asset. The property is said to currently be leased out for HK$84,800 per month, providing a prospective buyer with a potential yield of 3.2 percent. Read more>>

Home Prices Surged to 22-Month High: Knight Frank

Hong Kong residential prices have risen by 22.8 percent from their previous peak in September 2015, leading realtor Knight Frank says. The price growth has been led by prices of small units.

Overall price level has reached new heights, the consultancy says. “The latest official data suggests price growth for 25 consecutive months, rising by 22.8 percent from the previous peak in September 2015,” a Knight Frank report says. Read more>>

Even Haunted Flats Get Good Offers in HK Property Frenzy

The once heavy discount on a haunted apartment’s price has narrowed from about 30 per cent in 2013, to about 10 per cent this year, said Mr Ng, adding the discount dropped at the fastest rate in the past year.

“The market is crazy now, there is so much demand,” the former shark’s fin salesman told Reuters. “Buying an unlucky flat is now a very practical way to own a house, so competition is fierce.” Read more>>

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