(Asian Post, November 10, 2017) Asia has a commanding role in the emerging sector of property technology or "proptech", the application of technology to solve challenges in the real estate sector, according to a survey.

Within Asia-Pacific, start-ups with a proptech tie-in have outpaced their counterparts in Europe and the United States, having raised US$4.8 billion in funding among 179 companies since 2013, according to research by international property consultant JLL Greater China.

This represents more than 60 per cent of US$7.8 billion in global investment in proptech during the period, according to the report "Clicks and Mortar: The Growing Influence of Proptech".

The mainland and Hong Kong have raised US$3.03 billion, accounting for 41 per cent of global proptech investment during the period.

"Technology and real estate are converging in exciting ways. We're already seeing the potential of data analytics, artificial intelligence, the internet of things, virtual reality and blockchain to transform how we invest in and occupy real estate in the future," said Anthony Couse, chief executive at JLL Asia-Pacific.

The consultant expected annual proptech investment in Asia-Pacific to reach US$4.5 billion by 2020.

"The findings of the report show that there is a great deal of potential for proptech in Asia-Pacific. With its young population, rapid urbanisation and 'mobile first' mindset, all the conditions are in place for this new sector to accelerate, bringing increased efficiencies and better experiences for the end-user," the report said.

(Asian Post, November 10, 2017) Amid world's most expensive housing, 70pc of them prepared to finance that first home while some have already spent HK$900,000 doing so

Seven out of 10 parents in Hong Kong are willing to give their children financial help to buy a home, according to a survey released yesterday.

Parents who have already done so have spent an average of HK$900,000 to help their offspring onto the property ladder, while one generous parent contributed HK$10 million, the survey by AIA MPF found.

The findings underline how the "Bank of Mum and Dad" has become a major source of funds for young first-time buyers in the world's most expensive housing market.

The survey, commissioned by AIA MPF in August, targeted just over 1,000 respondents aged between 18 and 65 who have an account with Hong Kong's Mandatory Provident Fund compulsory pension scheme.

The city's skyrocketing home prices have left many young Hongkongers unable to afford to buy a home.

Secondary home prices in the city rose for a 17th straight month in August. Data from the Hong Kong Monetary Authority showed the average debt-to-income ratio was 75 per cent in the second quarter of this year, much higher than the long-term average of about 50 per cent since 1996.We cannot fault parents for caring, but they should pay attention to the potential risks that arise when they neglect to prepare for their own retirementStephen Fung, chief executive, AIA MPFIn further evidence that the property market is still red-hot, more than 13,000 prospective buyers swamped Sun Hung Kai Properties' Wings at Sea project in Tseung Kwan O on September 30 to buy 400 new flats. The flats sold for an average of HK$14,000 per square foot, a record for the Lohas Park area.

(China Daily, November 9, 2017) It’s amazing how a seemingly innocuous comment by Chief Secretary Carrie Lam Cheng Yuet-ngor on public housing could have ballooned into a nagging controversy despite repeated attempts by herself and the government to clarify it.

Lam had merely said in an interview the government believes that building another 100,000 public low-cost public housing flats on top of the existing 700,000 should be sufficient to meet the demands of families that need them most, while leaving financial and land resources for the development of subsidized homes for sale at 40 percent below market prices.

What she said falls in line with the government’s new housing policy that emphasizes home ownership which is exactly what many people of Hong Kong want. What’s more, home ownership can help strengthen a sense of belonging that’s seen lacking in the minds of many Hong Kong people.Her comments were misinterpreted by some social activists to mean that the government is putting a ceiling on public housing. The misunderstanding has sparked a storm of public protests which show that government housing policy, undermined by past empty promises, is still viewed with suspicion despite the fresh thinking and new approach.

Senior government officials are seen to have greatly stepped up their efforts to explain to the public the reasons behind the new housing policy which appears to have moved closer to the Singapore model from what had been done in the past in Hong Kong. The concept of public housing arose from a contingent plan to hurriedly house thousands of families whose tin-roofed squatter homes were destroyed by the great fire of 1953.

Since then, the government has built many more units in large housing estates for rental at heavily subsidized rates to needy families. It has also built better quality flats, sometimes in cooperation with private developers, for sale to the public at below market prices. But, unlike Singapore, home ownership has never been a priority in the Hong Kong government’s housing policy.

(China Daily, November 8, 2017) Opportunities remain in four key sectors — energy, property, infrastructure and commercial trade — in Middle Eastern countries engaged in the Belt and Road Initiative, especially the United Arab Emirates, according to Azmat M Moosdeen, chairman of Hong Kong Middle East Chamber of Business.

Moosdeen, looking forward to the Middle East Opportunities Summit to be held on Jan 15 next year in Hong Kong, said projects had drawn strong interest from the Chinese mainland. Summit organizers will introduce investment opportunities in energy projects (including solar energy, natural gas and petroleum) and residential property projects in the UAE jointly developed by UAE and Hong Kong developers, and infrastructure projects to be launched by the UAE government.

He said returns on UAE property projects developed by two major local developers were relatively high at 8 percent to 11 percent a year; the rental housing market is good, driven by the number of people doing business in the country and good quality of the housing stock. Foreigners can buy property in 80 percent of UAE districts and 80 percent of buyers pay for property in cash, he added.

The UAE is the top pick among Middle Eastern business destinations, according to Moosdeen, as the country’s legal system is relatively liberal and comprehensive and it has no profits tax. A borderadjustment tax of approximately 5 percent will be launched next year.

The tax-friendly environment in the UAE made it a favorable trade destination, said Moosdeen.

In terms of uncertainties and advice on doing business in the Middle East, he said a positive factor in the region is that most projects are developed by the government and established financial firms so good relationships with governments are vital; his chamber can recommend agencies to assist in legal and financial affairs.

(China Daily, November 7, 2017) Link Real Estate Investment Trust (Link Reit) said its total distributable income increased 7.2 per cent to HK$2.6 billion in the six months to September, boosted by strong rental income from shops and car parks.

Hong Kong's first property investment trust, the largest in Asia by capitalisation, reported half-year net property income of HK$3.76 billion, up 9.5 per cent from a year ago.

The interim distribution per unit came in at HK$1.21 per share, up 8.7 per cent from HK$1.11 per share a year ago, boosting the payout for investors.

Total revenue rose 7.4 per cent year on year to HK$4.95 billion, beating market estimates of a 7 per cent gain to HK$4.93 billion, while the profit distributable per share missed expectations of HK$1.27, according to a Bloomberg poll of analysts.

The market is speculating on the future sale of a dozen shopping centres Link Reit owns, after it said in July it intended to launch a strategic review of its property portfolio. Hong Kong Economic Times reported last month that Link Reit was seeking buyers for 17 shopping centres, valued at HK$14.5 billion in total, and received bids from 12 consortiums.

(Business Post, November 7, 2017) The Task Force on Land Supply is meeting today to discuss short-term leasing of government land and reclamation outside the Victoria Harbour. As the development potential of such government plots is limited while there are problems and progress is slow in brownfields, private developers' agricultural land and peripheral areas of country parks with low ecological value, with the demand for long-term housing, business and community uses not being met, massive reclamation seems to be the most effective way of increasing land.

Hong Kong currently has a lot of land not yet developed but their usability has been greatly discounted. A document from the Development Bureau to the task force says that some of the government plots under short-term lease or temporary purposes are very small or with slopes and not suitable for large-scale development. Basically, they don't have much potential as an alternative.

Doing whatever possible without supporting services

Though the population growth slows down, land supply grows even slower, resulting in housing demand exceeding supply with property prices and rents hitting new highs. The latter most clearly reflect the housing demand. As the unemployment rate is as low as 3.1 per cent, Hong Kong still needs to expand the labour force to support economic growth. The fertility rate and immigration policies will not change so demands for things like housing will keep growing.

Many measure land development needs for housing. However, the supporting hardware for various services such as transport, employment, medical care, recreation, leisure, waste disposal, elderly homes as well as "housing the deceased" brought about by population growth and aging all require adequate land. Not yet taken into account, for example, are economic development needs such as commercial buildings with Grade A office rents highest around the world.