〈The Standard, Jan 28, 2023〉The reopening of mainland China's borders has stimulated the retail property market and rents are expected to rebound this year.
A currency exchange chain, Hong Kong Exchange, signed another two-year lease on a shop at Causeway Bay's Hong Kong Mansion this year. The new monthly rent for the 80-square-foot street shop has shrunk 41 percent to HK$70,000 from the original rent sealed in 2019 - before the pandemic hit.
The owner, Choi, changed his mind about quitting the place after news of the mainland-Hong Kong border reopening emerged last month, he told Sing Tao Daily, sister publication of The Standard.
〈The Standard, Jan 27, 2023〉The volume of transactions for new homes in Shenzhen rebounded by 10 percent monthly to 2,850 last month following the lifting of most Covid curbs in China, prompting experts to expect a gradual recovery of the market after the Lunar New Year.
Following China's reopening, inquiries made by Hongkongers regarding Shenzhen properties increased, indicating revived interest.
Data from the Shenzhen government showed 2,850 new units were purchased last month, 10.04 percent higher than November, though that was still lower than the 3,328 deals seen in October.
〈Hong Kong Business, Jan 26, 2023〉Foreign investment sentiment in Hong Kong’s commercial property is still in the negative in the fourth quarter of 2022, the Royal Institution of Chartered Surveyors (RICS) reported.
In its latest Investment Sentiment Index reading, RICS found that China fell to -43 from -35; whilst Hong Kong stood at -36 from -39.
〈Asian Post, Jan 25, 2023〉Investors looking to invest in real estate must look into higher-quality industrial and logistics buildings in urban settings, according to Savills.
“With a low level of modern logistics stock and substantial growth in the e-commerce sector, most Asian markets have a structural deficit in warehousing and logistics space,” Savills said.
“The underlying secular themes are therefore strong, and income is stable. But investors still need to be picky on location and quality,” Savills added.
〈Asian Post, Jan 25, 2023〉The love-hate relationship goes on. For almost two years China’s leaders cracked down on borrowing to build and bet on property, plunging the market into a crisis.
Now that the economy has been weakened by the failures of the，zero-covid policy, the government is racing to rescue real estate.
Ni Hong, China’s housing minister, has said his ambition this year is to restore confidence; a series of measures announced in the past few months seek to make it easier for developers to raise capital. These efforts are reviving the property market. Unfortunately, they leave it just as vulnerable to boom and bust as ever.