〈Asian Post, Feb 12, 2022〉Major mall owners in Hong Kong stand to lose as much as 30 per cent of sales in coming months as shopping centres in areas hit by Covid-19 cases suffer from dwindling traffic amid lockdowns and tighter social-distancing curbs.

Analysts said losses could spread beyond the existing affected areas in Kowloon and the New Territories, as health experts predicted the fifth wave of infections could result in as many as 28,000 cases a day.

The city logged a record 1,325 cases yesterday, having multiplied from fewer than 30 at the start of the year, with Kwai Chung, Sham Shui Po, Sha Tin, Tai Po and Tuen Mun among the worst-hit locations.

"I would expect an overall 20 per cent to 30 per cent fall in retail sales during the current outbreak, [barring] any potential consumption coupon or fiscal stimulus from the government," said Martin Wong, director and head of research and consultancy for Greater China at Knight Frank.

"As these cases are on the rise and are spreading across the city, the impact on different areas would be similar."

The resurgence will derail a recovery in consumer spending. Retail sales climbed for an 11th month in December, government data showed. For 2021, they rose by 8.1 per cent to HK$353 billion, or just under HK$30 billion a month on average.

〈Asian Post, Feb 11, 2022〉Hong Kong’s tightened social-distancing measures have cast a shadow on the property market. But as new launches are delayed, agencies and developers are shifting their focus online to boost sales.

Centaline Property Agency expects fewer than 500 first-hand transactions this month, the lowest in two years, while second-hand property viewings are likely to sink by half compared with levels before the Lunar New Year, which could push lived-in home prices down by 3 per cent to 5 per cent from the end of last year.

"The tightening of the pandemic prevention measures will definitely have an impact on various industries and even the property market," said Louis Chan, Asia-Pacific vice-chairman and chief executive of the residential division at Centaline.

The tightened measures forced Henderson Land Development to cancel a briefing for sales of The Harmonie project. Potential buyers could pull out and recover their deposits, a spokeswoman said.

Developers are now updating their websites with virtual reality property viewings and introductory videos for buyers.

"We will strengthen our online property viewing and visiting experience," Wheelock Properties said. It plans to live-stream press conferences and arrange online registration of intent.

〈China Daily, Feb 10, 2022〉The availability of tiny flats in Hong Kong is set to peak this year after the government put a cap on the minimum size of homes late last year, according to market observers.

A total of 2,015 nano flats, with a saleable floor area of 215 sq ft or less, are expected to be ready this year, compared with 960 units in 2021, according to JLL.

These include 418 units at The Royale in Tuen Mun, 380 in Manor Hill in Tseung Kwan O and 288 at The Met. Azure in Tsing Yi.

"We predict the completion of nano flats will peak this year," said Ryan Ip, head of land and housing research at Our Hong Kong Foundation, a think tank.

"Demand for nano flats has declined after the government relaxed the mortgage requirements for higher-value properties in 2019, and this has been gradually reflected in the building plans of new residential projects."

The Development Bureau in December announced that a minimum unit size of 280 sq ft would apply to residential sites sold through government tender, in an attempt to regulate the supply of nano flats in the private market.

However, private development or redevelopment projects are not affected by this requirement.

〈Business Post, Feb 9, 2022〉Valuations of Hong Kong lived-in homes are expected to fall as a fifth Covid-19 wave takes hold and deals plunge because of fewer viewings, brokers have said.

Banks may reduce valuations by 1 to 2 per cent this month and by another 1 per cent next month, with midscale estates such as Kornhill Garden and Taikoo Shing expected to bear the brunt.

"Valuations will head south in February as home prices in late January dropped and may be down this month too," Sammy Po, of Midland Realty, said.

With Hong Kong confirming more than 600 Covid-19 cases on Monday, nearly twice as many as the day before, a further tightening of social-distancing measures was announced yesterday, including which premises will be covered by a new vaccine pass.

This surge in infections is likely to affect the usual boom that follows Lunar New Year. Flat viewings are expected to go down or be suspended altogether, especially if owners are not in a rush to sell.

〈The Standard, Feb 8, 2022〉Hong Kong is looking at introducing progressive property rates, which will see wealthier people paying more tax, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said yesterday.
The progressive rates structure is based on the principle that those who can afford to, should pay more taxes, and specific details will be announced in due course, he told a LegCo panel on financial affairs.

Currently, the rates and government rent charged is calculated at 5 percent and 3 percent of the rateable value of the property respectively.

Hui said the issue of broadening the tax base is very sensitive and the introduction of new taxes requires multiple discussions and consensus among the community.

Hui also stated that given the prevalence of virtual assets in recent years, the government needs to amend the legislation to include provisions to prohibit unlicensed virtual asset exchanges from promoting related activities.

The city needs to develop a system in response to the changing market, Hui said, adding that the authority may allow retail investors to purchase virtual assets depending on the future development of the market.