Foreign buyers stand firm on HK property

Business | Kevin Xu 3 Sep 2020

Almost eight in 10 overseas investors say they are looking to keep their property investment size in Hong Kong, despite uncertainties, show a survey by Jones Lang LaSalle.

Only 18 percent of correspondents plan to cut related investments, JLL said.

In the primary market, Wing Tai Properties (0369) sold a 1,428-sq-ft special unit at Oma by the Sea in Tuen Mun for HK$31.8 million, or HK$22,269 per sq ft, by tender.

In the secondary market, a 684-sq-ft flat at Taikoo Shing in Quarry Bay changed hands for HK$11.9 million, or HK$17,398 per sq ft, after HK$900,000 was slashed from the original asking price.

In Tsing Yi, a 675-sq-ft flat at Tierra Verde sold for HK$10.3 million, or HK$15,259 per sq ft, hitting a new low at the estate this year, according to Midland Realty.

Sun Hung Kai Properties (0016) expects to offer 140 units at Townplace Soho for rent in mid-September, at HK$80-110 per sq ft.

Meanwhile, the number of Hong Kong property transactions dropped 28.9 percent from a month ago to 5,390 in August, data from the Land Registry showed.

The total consideration of property sale and purchase agreements dropped 34.2 percent month-on-month to HK$45.6 billion.

For residential building units, the number of transactions declined by 28.9 percent month-on-month to 4,358 last month, with the consideration decreasing by 32.4 percent to HK$40.2 billion.

Wong Leung-sing, senior associate director of research at Centaline Property Agency, expects total property transactions to rise above 6,000 this month as the pandemic shows signs of easing recently.

In the commercial property market, a 415-sq-ft street shop on Bulkeley Street in Hung Hom fetched HK$19 million after HK$7.8 million was cut from the initial asking price, local media reports. The buyer will earn a rental yield of 2.3 percent, as a restaurant is leasing the premise for about HK$36,000 per month.

Among the five top shopping districts - Causeway Bay, Tsim Sha Tsui, Central, Wan Chai and Mong Kok - Central saw the highest vacancy rate in August at 20.38 percent, according to Centaline Commercial.



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