〈Asian Post, June 13, 2020〉Central banks are set to release US$6 trillion to boost their economies but none of that money is likely to revive home prices in the city that have been falling since last year

Hong Kong's homebuyers are unlikely to see a repeat of the 278 per cent surge in property prices over the past 12 years, because a contracting economy, rising unemployment and heightened political tensions are expected to dilute a fresh wave of quantitative easing.

A record US$6 trillion to be unleashed by global central banks this year would do little to lift Hong Kong's property prices, which have fallen 5.4 per cent since their peak in May last year, analysts said, adding the Federal Reserve's indication to keep the interest rate close at zero through 2022 might offer scant support to the property market despite Hong Kong rates mirroring those in the United States.

"The expectation is for prolonged economic weakness rather than a V-shaped recovery seen across many regional economies during the global financial crisis," said Harry Tan, head of research in Asia-Pacific at Nuveen Real Estate, which manages a portfolio of assets worth US$131 billion.

"The hit to business investment, labour market, consumer spending is likely to be more wide-ranging due to the very uncertain outlook and nature of the pandemic. Most regional economies are expected to contract by the sharpest pace in many decades."

〈Asian Post, June 12, 2020〉The United States government's planned sale of a plot of land worth billions in Shouson Hill has set tongues wagging in a city already caught up in the bitter rivalry between China and the US.

The timing of the sale - consisting of a 47,382 square foot plot with six multi-storey mansions - is certainly intriguing. Together, the property cluster is expected to fetch between HK$3.1 billion and HK$5 billion.

Bought soon after the second world war for an undisclosed sum, the sale will for sure make a killing for US taxpayers, or at least the State Department. Well, good for them. Everyone is asking, though, why now?

Well, it looks like a good time to sell. It's slightly off the top of the market, but still will be highly profitable in a city that has the world's most unaffordable real estate when compared to other major cities with less insane markets.

Still, you can't blame people for speculating about a political motive. The Americans have threatened to end Hong Kong's special customs status over the impending enactment of a national security law. This means mainland and Hong Kong officials may be targeted for sanctions and other punishments. Why? Don't ask. Americans think they are judge, jury and executioner of other countries' internal business.

〈China Daily, June 11, 2020〉Hong Kong’s indomitable "can-do, most livable" spirit has again proved itself. Property speculation, with which Hong Kong is infamously associated, has been rendered virtually non-existent as home prices defied the cue from the financial routs of 1997, 2003 and 2008 that drove the housing sector to decade lows and sparked sell-o¬ s in financial markets.

Both the primary and secondary markets recorded higher prices and trading volumes in the first half of this year. Industry players believe it reflects strong demand among first-time buyers, the solid holding power of sellers, and low interest rates under the quantitative easing policy of the United States.

In the first quarter of this year, Hong Kong’s GDP shrank 8.9 percent year-on-year — the steepest for a single quarter on record. The jobless rate for the February-to- April period hit 5.2 percent — rising for the seventh straight month to its highest in more than a decade. Under the context, the Hang Seng Index has slumped by up to 7,000 points last year.

But, at the same time, 5984 apartments were sold in the primary and secondary markets in May — a 46 percent rise compared to April and the highest in the past year.

Meanwhile, home prices in the secondary market picked up 3 percent in late May, compared to April, according to the Centa-City Leading Index released by Centaline Property.

Alva To Yu-hung, Cushman & Wakefield’s Greater China vice-president and head of consulting, said the transaction rebound in both the primary and secondary markets pointed to the strong purchasing backlog cooped up after stifled sentiment since June last year.

〈The Standard, June 10, 2020〉Rents at 20 blue-chip housing estates dropped by 5.8 to 16.7 percent last month compared to last June, as supply in the local rental market outpaces demand, which has been battered amid the Covid-19 pandemic and social unrest.

In Lai Chi Kok, average rents at Mei Foo Sun Chuen were HK$31 per square foot last month, down 16.7 percent from last June.

There are currently about 100 flats available for lease at the estate for about HK$34 per sq ft, and landlords are willing to lower asking rents by about 5 percent, according to real estate agency Hong Kong Property Services.

In Hung Hom, average rents at Whampoa Garden declined by 11.6 percent to HK$35.80 per sq ft, from HK$40.50 last June.

Around 80 flats are currently available for rent at the estate, according to Ricacorp Properties.

A three-bedroom flat at the estate was rented for HK$22,000 per month, or HK$34.40 per sq ft, after HK$2,000 was cut from the original asking rent.

In Tsuen Wan, average rents at Luk Yeung Sun Chuen were down by 5.8 percent to HK$32.50 per sq ft last month compared to last June.

Meanwhile, rental yields of small flats measuring below 431 sq ft went down by 10 basis points month on month to 2.4 percent in April, hitting a 22 year low, data from the rating and valuation department showed.

In comparison, the yield of small flats was at 6.5 percent in August 2003, when the SARS epidemic caused a sharp drop in home prices.

In April, rental yields were 2.3 percent for flats measuring 432 to 752 sq ft; 2.2 percent for 753 to 1,075 sq ft; 2.1 percent for 1,076 to 1,721 sq ft; and 2 percent for flats above1,722 sq ft

〈Asian Post, June 9, 2020〉Hong Kong developers are expected to price new projects at lower levels to capture a revival in buying interest as the government eases measures to control the coronavirus pandemic, according to analysts.

New home sales surged in May to 2,085 units worth HK$22.1 billion, the highest in a year, according to Dataelements.

It was also more than double the business in April and an almost fivefold jump over February when the market hit a multi-year low of 340 units.

"Builders will chase after volume instead of holding out for higher selling prices as the Covid-19 outbreak comes under better control now," said Joseph Tsang, chairman at JLL Hong Kong. "New projects will be launched at lower prices in the first batch to draw eyeballs."

The government eased pandemic measures from May 8, allowing public gatherings in groups of eight, among other measures.

The recovery momentum, however, is being tested in the coming weeks by Beijing's introduction of a national security law tailor-made for Hong Kong.

The legislation could reignite the unrest that helped push the economy into a recession and could further stoke US-China tensions that have seen Hong Kong caught in the middle.