Despite new stamp duties introduced last year demand for new homes in Hong Kong continues to rise in 2017. Also in the headlines today, comments by Goldman Sachs that China developer shares were undervalued helped trigger high single digit price increases for shares in some of the country’s biggest homebuilders, and much more.
To see the unintended consequences of the Hong Kong government’s efforts to tame property prices, take a look at the latest batch of newly built apartments to go on sale.
At least 800 bids for 105 new units flooded developers of a remote new housing complex, and nearly all of them sold out in a single day last week. Such sellout crowds are becoming the norm at new projects this year as distortions caused by government attempts to cool property prices have nearly halted the supply of older, existing homes for sale. Read more>>
Cheung Kong Property Holding has become the first Hong Kong developer to offer a 100 per cent stamp duty subsidy for homebuyers, underscoring its eagerness to generate sales of a new luxury project amid the government’s moves to curb property investment demand.
CK Property, the city’s second largest developer in terms of market capitalisation, said buyers of its Crescendo villa development in Yuen Long would receive the equivalent of 30 per cent of the flat’s value to compensate for higher stamp duties. Read more>>
The Hang Seng China Enterprises Index, or the H-Shares China Index, reversed the morning session’s losses and jumped 1.1% as we head to the close, boosted by a huge rally in real estate developers.
Blue-chip China Overseas Land & Investment (688.Hong Kong) soared 5.9%, the sixth most traded stock on the Hang Seng Composite Index. China Resources Land (1109.Hong Kong) advanced 7.2%, China Vanke (2202.Hong Kong) gained 3.1% and Country Garden (2007.Hong Kong) soared 8.5%. You get the picture. Read more>>
Perennial Real Estate Holdings’ net profit for the fourth quarter ended Dec 31 sank 37.8 per cent to S$25.6 million, even as revenue slid 24.2 per cent to S$21.5 million. The decrease was mainly due to lower rental revenue from TripleOne Somerset as expiring leases were not renewed due to asset enhancement works which started last year, the company said.
Revenue for the full year came in at $110.2 million, marginally lower than S$117.7 million a year earlier due to the absence of the acquisition fee of AXA Tower and lower rental revenue from TripleOne Somerset. Read more>>
Property group Ho Bee Land Limited through its wholly-owned subsidiary Grandiose Investments, has entered into an agreement to sell Rose Court, a London office block, to an unrelated Guernsey property unit trust for £94.5 million.
In a filing to the Singapore Exchange, the group said the purchaser paid a deposit of 10 per cent of the sale price and the balance will be payable upon completion on 21 February 2017. The transaction is a cash purchase. Read more>>
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