Head­way in bid to stymie homes woes

SAR’s sup­ply of pri­vate res­i­den­tial flats set to sur­pass govern­ment’s 2016-17 year’s tar­get by 8 per­cent

China Daily (Hong Kong) - - HK - By OSWALD CHAN in Hong Kong oswald@chi­nadai­lyhk.com

Hong Kong may be see­ing a ray of hope in its be­lea­guered prop­erty sec­tor, with more than 3,600 pri­vate res­i­den­tial apart­ments due to come on stream in the fourth quar­ter of the 2016-17 fis­cal year (Jan­uary to March 2017).

This would ex­ceed the govern­ment’s tar­get for the en­tire fis­cal year by more than 8 per­cent, ac­cord­ing to Sec­re­tar y for De­vel­op­ment Paul Chan Mo-po.

Ta k i n g i n t o a c c o u n t t h e govern­ment’s land sales prog r a m , M T R C o r p o r a t i o n’s rail­way proper ty de vel­op­ment, re­de­vel­op­ment projects un­der­taken by the Ur­ban Rene wal Author­ity (URA), as well as pri­vate de­vel­op­ers’ lease mod­i­fi­ca­tions and re­de­vel­op­ment projects, some 3,610 new apart­ments will flood the lo­cal prop­erty mar­ket.

M T R C o r p o r a t i o n’s r e s i - den­tial projects on Kam S h e u n g R o a d , Yu e n L o n g and in Wong Chuk Hang on south­ern Hong Kong Is­land could con­trib­ute 2,450 apart­ments, while URA projects in Cen­tral could pro­vide an­other 115 units.

“The govern­ment had al­ready sup­plied 15,000 units in the first three quar­ters of the cur­rent fis­cal year. To g e t h e r w i t h t h e f o u r t h quar­ter’s fig­ure, the govern­ment is con­fi­dent that the whole-year res­i­den­tial sup­ply tar­get of 18,000 units can be ex­ceeded by 8 per­cent,” Chan said on Thurs­day.

He said more than 5,000 apart­ments could be avail­able in the first quar­ter of the 2017-18 fis­cal year (April to June 2017), and de­tails will be re­leased in Fe­bru­ary next year.

“Though the sup­ply fig­ure may fluc­tu­ate for some time, the ad­min­is­tra­tion is striv­ing to make land sup­ply con­sis­tent, sta­ble and meet the tar­get,” he said.

Real-es­tate ad­vi­sory comp a n y Jo n e s L a n g L a S a l l e said it ex­pected the sup­ply of pri­vate res­i­den­tial apart­ments to hit 20,000 units an­nu­ally be­tween 2017 and 2019, lead­ing to a sce­nario of in­creased sup­ply amid de­pressed mar­ket de­mand fol­low­ing the govern­ment’s lat­est mea­sures to cool the run­away prop­erty mar­ket.

Last month, the govern­ment im­posed a flat stamp duty rate of 15 per­cent on proper ty transac tions in­volv­ing in­di­vid­ual buy­ers (ex­cept first-time Hong Kong per­ma­nent res­i­dents) and cor­po­rate buy­ers — up from the pre­vi­ous 1.5 per­cent to 8.5 per­cent rates. As non-res­i­dent and cor­po­rate homes buy­ers are sub­ject to an ad­di­tional 15 per­cent buyer’s stamp duty, the new mea­sure means an ef­fec­tive tax rate of 30 per­cent for the two cat­e­gories of pur­chasers.

He n r y C h e n g K a r - s h u n , w h o h e a d s N e w Wo r l d De­vel­op­ment — one of Hong Kong’s big­gest de­vel­op­ers — de­clined to com­ment on the ag­gres­sive ap­proach adopted re­cently by some Chi­nese main­land de­vel­op­ers in bid­ding for res­i­den­tial land in Hong Kong, say­ing the mar­ket en­vi­ron­ment is the key fac­tor.

“Our de­ci­sion on whether to join in the bid­ding de­pends ver y much on the macroe­co­nomic en­vi­ron­ment,” he said.

“Hong Kong prop­erty prices de­pend on the pace and mag­ni­tude of US in­ter­e­strate hikes, as this con­cerns pri­vate homes

Hong Kong prop­erty prices de­pend on the pace and mag­ni­tude of US in­ter­est-rate hikes, as this con­cerns the af­ford­abil­ity of lo­cal homes buy­ers in re­pay­ing their mort­gage loans.” will be avail­able in the fourth quar­ter of 2016-17 fis­cal year (Jan­uary to March 2017)

pri­vate homes

sup­plied by the govern­ment in the first three quar­ters of the cur­rent fis­cal year buyer’s stamp duty on the sale prices of prop­er­ties for in­di­vid­u­als and cor­po­rate buy­ers levied by the Hong Kong govern­ment in Novem­ber

t h e a ff o r d a b i l i ty o f l o c a l homes buy­ers in re­pay­ing t h e i r m o r t g a g e l o a n s ,” h e added.

T he one-month Hong Kong In­ter­bank Of­fered Rate (hi­bor) — the ba­sis for de­ter­min­ing hi­bor-linked mort­gage loan in­ter­est rates — re­cently shot up to above 0.7 per­cent — 52 per­cent higher than the 0.46 per­cent recorded in early De­cem­ber.

Henry Cheng Kar-shun, head of New World De­vel­op­ment

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