Developer’s K1.69bil one-day sellout of flats


World Finance & Economy
Image for illustration only. For image text, go to https://www.scmp.com/property/hong-kong-china/article/2183539/analysts-change-their-tune-forecast-15-cent-increase-hong (Analysts change their tune, forecast an up to 15 per cent increase in Hong Kong home prices this year)

Developer’s K1.69bil one-day sellout of flats

PORT MORESBY: It is every property developer’s dream but it can only happen in Hong Kong (HK).

Imagine launching a housing project consisting of 500 flats and all are sold in a day with a haul of HK$4 billion (K1.69 billion)!

According to a South China Morning Post news feature, HK’s property market has 10 more years of bull run.

Read on for the details:

Companies
Hong Kong’s property market has 10 more years in its bull run as population inflow from Greater Bay gives it sustenance

· Hong Kong’s median home prices will keep spiralling upwards for the next 10 years because demand for abodes will outpace supply in the city, UBS said

· The world’s most expensive urban centre will face an annual shortage of about 15,000 homes, UBS said

Sandy Li
Cheryl Arcibal
Published: 12:00pm, 9 May, 2019
Wheelock Properties sold every one of its 500 Montara flats in Lohas Park on 4 May 2019, with 36 buyers competing for every available unit. The developer’s haul for the day was HK$4 billion, setting a record for a one-day turnover. Photo: Edmond So
Hong Kong’s property bull market has another 10 years to run, as housing supply fails to keep up with the new population pouring in from the Greater Bay Area, said the Swiss bank UBS, which correctly picked the bottom in the city’s short-lived price correction last year.

Home prices will continue spiralling upwards as buyers compete to get their hands on residential property, according to the bank’s real estate research team, led by John Lam. Hong Kong’s annual housing stock is estimated at 45,000 homes a year, 25 per cent short of UBS’ calculation.

“Our analysis based on demographics and non-local demand suggests annual housing demand would stand at 60,000 units,” Lam said. The Greater Bay Area, a cluster of 11 southern Chinese cities including Hong Kong and Macau, “should enhance integration [within] the area through improving software and hardware, lowering transaction costs and boosting economic activity. We believe this will benefit Hong Kong property.”

UBS isn’t alone with the bullish forecast. Moody’s Investors Service said Hong Kong’s home prices would rise between 8 per cent and 10 per cent over the next 12 to 18 months, revising its earlier estimates of a drop of up to 15 per cent, with its vice-president Stephanie Lau predicting median home price to surpass its July 2018 record.

The forecasts by UBS and Moody’s pose a policy challenge for Hong Kong’s Chief Executive Carrie Lam Cheng Yuet-ngor and her administration, which have made affordable housing a key policy objective.

Hong Kong’s government may give the city’s subway operator and the urban redevelopment authority a greater role to provide affordable housing, such as turning more urban projects into subsidised homes, and reserving sites along rail lines for public housing, Financial Secretary Paul Chan Mo-po said in an interview with South China Morning Post.

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