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Property News Weekly Digest
〈Asian Post, July 24, 2021〉A residential site in one of the least-developed areas of Hong Kong has generated a strong response from developers vying to get their hands on some of the limited land available in the city.

Twelve bids were submitted for the site - called Area 24 - in the Kwu Tung area of the northern New Territories before the tender closed at noon yesterday. Developers are betting on future housing demand in the sparsely populated area once transport links are ready in a few years' time.

Located next to a plot won by Sun Hung Kai Properties (SHKP) in April, it is the third parcel of land to be offered for government tender in Kwu Tung in as many months.

"Fierce competition for land is unavoidable as the government is unable to provide sufficient land for private housing," said Thomas Lam, executive director at Knight Frank.

Companies that participated in the bidding included SHKP, Henderson Land Development and CK Asset Holdings. A joint venture between Chinachem Group and Hysan Development, and a joint bid by Far East Consortium and Tai Hung Fai Enterprise also threw their hats into the ring.

〈Asian Post, July 23, 2021〉Heavily indebted developer China Evergrande said yesterday it had resolved a dispute with a bank creditor that had led to 132 million yuan (HK$158.6 million) of its assets being frozen earlier this month.

The Shenzhen-based property company said it maintained a "cooperative relationship" with China Guangfa Bank and had resolved its dispute with the lender following additional communication.

"The two parties will continue to consolidate and deepen their business relationship in the future," Evergrande said in a statement on its website.

Shares of Evergrande jumped as much as 11 per cent in Hong Kong yesterday following the announcement, before closing up 7.8 per cent.

Evergrande, the world's most indebted developer, had said on Monday that it was considering "legal proceedings" against Guangfa Bank after the lender obtained a court order earlier this month freezing some of its assets.

The developer's shares crashed in Hong Kong on Monday, falling 16 per cent and wiping US$2.7 billion off its market capitalisation after the dispute became public, increasing concerns about its financial health.

〈China Daily, July 22, 2021〉Nan Fung Development is the first developer to apply for the government's land-sharing pilot scheme to convert 3.2 hectares in Tai Po into 1,642 flats.

The Development Bureau said yesterday the first application under the scheme involves two private lots adjoining government land at Lo Fai Road and Ting Kok Road in Tai Po.

The application will involve 1,149 public housing or starter homes and 493 private apartments with supporting facilities, with a total gross floor area of about 85,000 square meters.

The public housing units are expected to be rolled out in the third quarter of 2025 in four blocks 17 storys high, according to the bureau.

The private homes are expected to be completed in November 2028 and consist of two 14-story blocks.

Secretary for Development Michael Wong Wai-lun said: "The land-sharing office has been in dialogue with a number of other interested project proponents in facilitating their submission of applications."

〈The Standard, July 21,2021〉Price cuts weigh heavy on the luxury market

Flats at two luxury towers in North Point were sold at discounted prices despite a pick-up in the property market that is supported by health authorities bringing the pandemic situation in Hong Kong well under control.

Eleven out of the 15 secondary market deals at Victoria Harbour and Harbour Glory were sold with price cuts of up to 20 percent.

Prices at the two developments can be as high as HK$50,000 to HK$70,000 per square foot in the primary market. The soaring prices, coupled with diminishing mainland capital inflows, made the flats seem less attractive to potential buyers, insiders said.

Though the primary market is booming, values of some luxury homes have slid after residents moved in.

Victoria Harbour, the luxury development of Sun Hung Kai Properties (0016) that sits on the waterfront at North Point, has sold around 100 of the 355 units so far. The biggest deal was priced at more than HK$73,000 per sq ft, the highest for a flat on the east of Hong Kong Island.

〈Global News, July 20, 2021〉Sydney to be world’s strongest prime property market in 2021 but set to share top-spot with London in 2022.

New research reveals that luxury residential prices are forecast to rise faster than envisaged just six months ago.London, UK – New research from Knight Frank reveals that luxury residential prices are forecast to rise faster than envisaged just six months ago. Sydney leads Knight Frank’s prime residential price forecast in 2021 with luxury prices in the city expected to rise 10% over the year.

However, in 2022, Australia’s largest city will share the top spot with London, with both cities forecast to see prime prices accelerate 7% year-on-year. This rise would represent prime central London’s strongest annual price performance in almost seven years.