Sound prediction is nothing without action

The value of Hong Kong exports went down by 13%.

The value of total exportd fell to $338.3b in April 2023, down by 13% month-on-month, the Census & Statistics Department announced today.

The value of imports of goods declined 11.9% to $374.9b for the same period. A trade deficit of $36.6b, or 9.8% of the value of imports, was documented in April.

The city government would expand the range of eligible applicants for civil service jobs that require at least an undergraduate degree.

Aside from graduating students and applicants who already obtained the qualifications, government departments would also consider undergraduates or postgraduate students when they want to expand their pool of candidates eligible for the job.

The departments will depend on their labour and operational resources before expanding their pool of applicants.

Developers are expected to speed up new home sales in the Northern Metropolis, as Novo Land in Tuen Mun will release the first price list for Phase 2A this week and High Park in Hung Shui Kiu might obtain pre-sale consent soon.

These two projects will provide about 2,000 new units, most of which are small flats, and will be priced at the market level.

For the Novo Land Phase 2A, developer Sun Hung Kai Properties (0016) uploaded the prospectus last week, and plans to unveil the first price list this week and to launch sales as early as the beginning of next month.

The first price list for Phase 2A will provide at least 186 units and covers one to three-bedroom homes, says SHKP.

The Land  Registry documented 5,284 sale and purchase agreements for all building units.

In a statement, the government said the total consideration for such deals fell 30.1% from April to $44.6b in May, whilst a 42.1% decrease was recorded.

Of the agreements, 4,003 were for residential units, down 12.7% from April and 35.5% lower than a year ago.

The total consideration of residential units was $36.8b down 29.8% compared with April and down 36.6% from May last year.

More than 60% of full-time workers in Hong Kong received a pay hike, which is up from 53% in the previous year, JobsDB reported. 

The average salary increase stood at 4.1%, which is the highest increase in the past four years. This also marks the third consecutive year Hong Kong’s job market saw a pay hike.  

The report noted that the proportion of salary freezes (35%) and pay cuts (4%) also decreased by 6 percentage points and 2 percentage points respectively since last year.

Millennials are seen to be particularly drawn to contemporary art as growth for Christie’s, Sotheby’s, and Phillips are highly anticipated in art hubs Hong Kong and Singapore.

Millennials have proven themselves to be the new generation that paints a profitable path for auction houses. In fact, last year, younger collectors accounted for 34% of Christie’s, close to 40% of Sotheby’s, and nearly a third of Phillips’ buyers.

“Asia-Pacific (APAC) remains the powerhouse of new and millennial buyers with strong buying power,” Francis Belin, President of Christie’s Asia Pacific, told the Singapore Business Review. In Christie’s recent Spring Auctions in Hong Kong, millennials accounted for 45% of all new buyers to the sales.

Grade A office demand in Hong Kong will remain subdued in 2023, according to JLL, adding that this will put downward pressure on rents.

The weak demand has pushed the vacancy rate in Hong Kong Island up. Central’s vacancy rate also remains at a high level.

The high vacancy rate coupled with the 1.83 million sq ft of new office space entered into the office market, primarily in Central and Wan Chai, will likewise drag rents down.

“ In the short term, some landlords may reduce rents to attract tenants, but the reduction will likely be less than during the pandemic,” JLL said.

Henderson Land Development (0012) co-chairman Martin Lee Ka-shing expects the property market to gradually recover and property prices to remain stable this year.

Lee said he is optimistic about the property market in Hong Kong after the border reopening, as the housing demand in the city is still strong.

On plans for land auction, Lee said it is up to the location and company's strategies.

When asked whether to increase the proportion of the rental business, Lee replied that Henderson will keep running both leasing and property development.