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L

 

HONG KONG PROPERTY

Residential

Office premises

Retail premises

Flatted factory

TRENDS 

Price

Rental

Price

Rental

Price

Rental

Price

Rental

1996 8.9 -1.4 -3.2 -14.7 3.3 * -13.7 -9.9
1997 39.5 13.0 13.1 3.0 32.3 4.8 -1.5 0.1
1998 -28.2 -16.3 -36.9 -13.3 -27.6 -10.0 -22.0 -10.9
1999 -14.6 -11.2 -25.7 -26.4 -22.1 -10.1 -24.1 -15.3
2000 -10.4 -1.9 -10.1 -1.5 -6.4 1.3 -8.8 -4.6
2001 -12.5 -2.8 -12.9 2.7 -8.4 -1.6 -10.6 -5.2

             >> HISTORICAL     Source:  HK Government

SNAPSHOT as at 2002:

  • Population up 0.7% (48,000) in 2001
  • Unemployment up to 7.1%
  • Decline in number of expatriates and their lower housing budgets
  • Turnover of property transactions down by 25% over previous year
  • Best lending rate (prime) at historic low of 5.25% in 2002
  • However because of preferred packages offered by developers and banks, 95% of the loans were at below prime with average mortgage rates at 2.7%
  • Continuing trend of change to rental projects from pre-sales
  • Investor expectations according to DTZ Research (p. 28):
    1. Luxury Residential              5-6% average yield per annum
    2. Industrial                           10-15% average yield per annum
  • According to Cushman Wakefield, property values at The Peak are down 43.4% since the height of the market in 3Q97

LUXURY MARKET OUTLOOK:

  • End users searching for reasonably price prime residences for owner occupancy
  • Despite historic low interest rates, investors remain cautious in light of uncertain economic trends in both United States and Hong Kong
  • Luxury market comprise just 2% of private housing stock
  • Property market poised for a rebound next year according to Chartered Surveyors institue
  • In the past, luxury supply had been consistently low but this is not the case with the following:
    Completion

    Project

    # units Developer
    2001 41C Stubbs Road
    Summit
     56  Hang Lung
    2002 41D Stubbs Road
    High Cliff
    117 Central
    2001 26  Peak Road  11 Nanfung
    2001 2 Bowen Road
    Regency Royale
    105
    2002 8-10 Mount Austin Road  76 Nanfung
    2002 80 Robinson Road 264 Nanfung
    2002 Bamboo Grove @ Kennedy Road (renovation) 345 Hysan
    2003 3 Tregunter Path
    Ava Mansions
     68

Luxury Residential | HONG KONG ISLAND

The Peak
Mid Levels - Hillsborough Court
Convention Plaza
Parkview
Island South
Hong Kong Island
 



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