Leading today’s Hong Kong real estate news, the city’s de facto central bank rejected calls from lawmakers to relax mortgage policies, saying the housing market is still too hot. Also in the headlines, even Hong Kong’s securities regulator may find it hard to rent an office in Central, with prices being what they are these days. All these stories and more await you, if you just keep reading.
Hong Kong Monetary Authority chief executive Norman Chan Tak-lam on Monday rejected calls by lawmakers to relax mortgage policies, saying the city’s property market was still too overheated for any such relaxation.
The authority, Hong Kong’s de facto central bank, has introduced eight rounds of mortgage tightening policies since 2009 to crack down on speculative activity. The public refers to these as “spicy policies.” Read more>>
A Chinese-led consortium is seeking a financing package of HK$33 billion ($4.2 billion) to buy a landmark skyscraper, testing the waters for what could be the biggest property loan in Hong Kong since 2015.
The jumbo borrowing comes amid the Hong Kong Monetary Authority’s efforts to tighten lending for developers. At HK$33 billion, the loan to acquire The Center would be the largest real estate-related financing since billionaire Li Ka-shing borrowed HK$55 billion to spin off Cheung Kong Property Holdings, according to data compiled by Bloomberg. Read more>>
In the world’s most expensive city, even the financial industry overseer needs to put up cash, or be priced out of prime office space.
That is what’s happening to Hong Kong’s Securities and Futures Commission (SFC), as it finds its HK$3 billion (US$383.5 million) budget insufficient for even half of the asking price of a top-tier, Grade A prime office in the city centre. Read more>>
Chuang’s Consortium is rumoured to be selling Chuang’s London Plaza in Jordan, Kowloon en bloc. Located at the intersection of Nathan Road and Austin Road, the 13-storey commercial building is mainly occupied by restaurant tenants. The property is valued at HK$5 billion ($639 million), translating to HK$45,000 ($5,755) per square foot.
The site is said to have won government approval to be converted into a 20-storey commercial building, with a gross floor area of 110,000 square feet (10,219 square metres). Read more>>
Hsin Kuang Restaurant Group sold the ground-floor entrance and first through fourth floors of in Hsin Kuang Centre, with a saleable area of 95,340 square feet (8,857 square metres), to the chairman of Fulum Group for HK$906 million ($116 million). The deal also includes 37 parking lots and the price is equivalent to HK$9,503 ($1,215) per square foot.
The buyer of the units, Yeung Wai, chairs Hong Kong restaurant chain Fulum Group. The Hsin Kuang Centre is located at 120 Lung Cheung Road, Wong Tai Sin in Kowloon. Hsin Kuang gained HK$867 million ($111 million) of profit on the 32-year investment. Read more>>
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