Weary about the economic outlook, magnates and celebrities have decreased their real estate holdings in Hong Kong.
Actually, not only are ordinary property owners worried about the outlook for Hong Kong real estate, but even moguls have joined in the sellers’ ranks. It is reported that the casino tycoon’s daughters He Chaoqiong and He Chaofeng have sold a unit in Kowloon Station, “Domination” Feature Complex, for HK$83 million.
In “Domination” Complex, the two suites on the 69th and 70th floors are in a composite double-entry style, connecting neighboring Suite F on the 70th floor. According to information from the Land Registry Office, He-Tin Group, Ltd, which purchased it for HK$65.18 million in Aug 2009, earned HK$17.82 million from this transaction. He Chaoqiong and Je Chaofeng are this company’s directors.
In addition, “The Prince of Gymnastics” Li Ning, of Li Ning Co Ltd, has reportedly sold his property at 33 South Island Road from New World Development, for HK$57,000 per sq. ft. He bought the property for HK$150 million in 2006. Earlier, the unit had been put on the market with a low profile, asking HK$400 million; but this time the transaction was successfully made for HK$350 million.
Fierce competition in rentals and rent reductions to attract tenants while the second-hand properties market has been affected by multi-adverse factors, the rental market has also been badly hit. Many secondhand properties, pulled back from the market, have been converted into rentals; coincidentally, a large number of move-ins are taking place, with vacant properties put out for rent, causing the rental market to be badly oversupplied.
The competition in new and old rentals for tenants is increasingly fierce, coupled with the traditional off-season of the rental market, while the recent tenancy rate has greatly slowed down. According to a comprehensive Ricacorp Research report, the latest data shows the 50 weighted indicators turnover rate on average in Nov was HK$22.16 per sq. ft, a 0.9 per cent monthly decline. Residential rent has dropped for two consecutive months.
It’s reported that after a 9 per cent rent deduction, suite C of Lower Palace floor, Quarry Bay, Taikoo Shing, could be rented out for HK$15,000 per month, about HK$22.20 per sq. ft, the lowest rate in recent years.
In addition, a middle floor unit with 1,127 sq. ft in Baijing Wan, Olympic Station, is contracted out for HK$20.9 per sq. ft, HK$23,500 per month, after the mainland landlord made more than a 16 per cent rent reduction.The worst hit rental area is Kingswood villas in the Tin Shui Wai Resort. Most recently, a 3-room, 708 Sq. ft unit rented for HK$5,500 per month, only HK$7.8 per sq. ft.
Read the original Chinese article.