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Property News Weekly Digest
〈The Standard July 9, 2022〉A rebound in the pandemic has sparked a drop in property transactions. Banks are also cautious while valuations have fallen slightly.

The number of housing estates that are seeing higher bank valuations fell from nine to seven.

Valuation increases at the seven housing estates ranged from 0.3 to 1.53 percent, according to a report on bank valuations of the 20 major estates.

The industry expects the primary market to continue to be the focus in the short term, and bank valuations will remain within a narrow range.

〈Asian Post July 8, 2022〉Financial Secretary Paul Chan revealed that he will oversee the Steering Committee on Land & Housing Supply, a new working group set by Chief Executive John Lee.

As chair of the committee, Chan will oversee the land infrastructures, including ones related to transport; and housing supply both public and private.

Chan vowed that he will make sure that land infrastructures, including various ancillary community facilities, are completed in time.

The FS added that his committee will also be “publishing the forecast of land supply in the coming decade to enhance transparency and also enhance the oversight by the public of the work of the Government in this respect.”

〈Asian Business July 7, 2022〉Commercial real estate investment deals in Q2 totalled $16.0b, an increase of 17.5% from the previous quarter.

When including pure land or related transactions, however, total investment volume fell 42.4% YoY, mainly due to the high base of the comparison set in Q2 2021.

According to CBRE, industrial properties received the strongest investment demand amongst sub-markets, with deals totalling $6.97m. The sector accounted for 44% of total quarterly investment volume.

〈Hong Kong Business July 6, 2022〉Warehouse vacancy dropped to 1.4% in Q2 2022, marking its lowest level since Q4 2014, data from CBRE showed.

Rents likewise improved for warehouses, increasing by 2.5% QoQ in Q2 2022.

However, leasing momentum remained slow for other industrial property types. Rents for flatted factories only increased by 0.8% QoQ, whilst rent for industrial offices was flat during the quarter.

“The bulk of demand in Q2 2022 came from local 3PLs while requirements from government departments rose once again over the quarter,” CBRE said.

“The significant leasing demand contributed by the Hong Kong government and the improved leasing momentum driven by domestic demand in the first half of 2022 caused industrial properties to outperform other sectors once again,” CBRE added

〈Asian Post July 5,2022〉China is stepping up efforts to salvage the residential property market as consumer and business confidence has been battered by lockdowns.

From urging banks to lend more, to easing mortgage costs, and partially relaxing rules on owning multiple properties, the measures also come in response to a downturn in the property sector that has seen more than a dozen developer defaults and falling home prices.