Hong Kong chief moves to curb Chinese property investors

[sleek]

Hong Kong chief moves to curb Chinese property investors (http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1086832/1/.html)
Posted: 13 October 2010 1434 hrs

HONG KONG: Hong Kong's leader outlined new steps on Wednesday to cool the world's hottest real estate market, including a halt to automatic residency for wealthy Chinese buyers, depressing property shares.

Chief Executive Donald Tsang said he was responding to "public concern" about a residential housing shortage and sky-rocketing prices, at a rowdy legislative assembly session in which one legislator was escorted from the chamber.

Residential property prices have risen 20 per cent in the last year, he noted.

"Housing is currently the greatest concern of our people," said Tsang.

"Over the past few years, private housing supply has been relatively low. We should address the fundamentals by increasing land supply in response to market demand."

One of the measures he unveiled was a temporary amendment to the territory's Capital Investment Scheme, which is intended to encourage investment in the territory.

The amendment will prevent investors from gaining residency in Hong Kong through property purchases from October 14, Tsang said.

Investors from the mainland have long been lured by the prospect of residency in Hong Kong, a financial centre and gateway to China that is run under a different legal system and boasts higher living standards.

The announcement sent share prices in property developers plunging: SHK Properties was down 3.6 per cent, New World Development lost 3.5 per cent and Sino Land was down 2.6 per cent.

To help ease the housing shortage, Tsang also announced plans to build residential property on the city's old airport, Kai Tak, which was closed down in favour of a new more spacious sight away from residential areas in 1998.

On Tuesday, angry protesters interrupted an auction of an upmarket residential site in the Kowloon area that fetched 1.63 billion Hong Kong dollars (210 million US dollars). - AFP/fa

[mantrix]

So investors all now move to singapore?

[bargain hunter]

same thing wat. singapore had also amended the rules last month that buying ppty no longer ensures PR (took effect 1 Oct 2010).


So investors all now move to singapore?

[sleek]

HK's property cooling measures may attract more mainland Chinese investors to S'pore
By Georgina Joseph | Posted: 13 October 2010 2141 hrs (http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1086927/1/.html)

SINGAPORE : The latest property cooling measures in Hong Kong may prompt more mainland Chinese buyers to turn to Singapore as a destination for property investments.

Market experts said this may in turn cause property prices here to escalate higher and it could even spur another round of cooling measures.

Colin Tan, who is Head of Research & Consultancy at Chesterton Suntec International, said: "Every time cooling measures are applied in China and in Hong Kong, we can expect Chinese property investors to redouble their efforts in their search for alternative places to invest, and Singapore continues to climb up higher on their list."

Experts said Chinese buyers formed about 16.4 per cent of foreigners that bought Singapore properties this year, with a total value of around S$1.4 billion.

Meanwhile, Executive Director of Residential Services at Credo Real Estate, Liang Thow Ming, said that Hong Kong's tightening efforts could also have a psychological impact on buying sentiments in Singapore.

This may be in the form of heightened fears of additional cooling measures introduced in Singapore's property market.

Still, most analysts believe that the overall impact of the measures will be limited as not many Singaporeans invest in the Hong Kong property market.

Donald Han, who is managing director at Cushman and Wakefield, said that "Hong Kong is not a hot-bed for Singaporean investors".

Mr Han added that traditional Singaporean investors tend to go for property markets such as Australia and the United Kingdom, where property cycle movements are less drastic.

Measures outlined by Hong Kong Chief Executive Donald Tsang on Wednesday include a halt to automatic residency for wealthy Chinese buyers, effectively preventing investors from gaining residency in Hong Kong through property purchases.

This will be effective from Thursday.

Mr Tsang was responding to public concerns in Hong Kong about a housing shortage and property prices spiralling out of control.

Average home prices in Hong Kong have climbed by 15 per cent so far this year. - CNA/ms

[Wild Falcon]

Faint. When HK chase the mainland Chinese speculators away, Singapore seem to be the whore welcoming them with open arms. Come, come and speculate in SG property! One interesting difference between HK and Singapore is that HK cooling measures is always targeted at the "high-end" while Singapore cooling measures usually targets the HDB and masses.

Maybe more mainland Chinese will buy up the units at BLVD. Nowadays all the record breaking prices are all achieved by the "foreign" speculator talent. All kinds of dodgy characters in this development including a Japanese fund manager arrested for insider trading :)

Sigh! Not a single "record breaking" deal below involve a Singaporean (PRC, Japanese, Indian, Hongkonger). Singaporean now left out of the luxury market "boom"?

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SC Global sells Cuscaden Walk penthouse for $30m
Business Times: Tue, Oct 12
(SINGAPORE) There seems to be a bit more buzz at the high-end condo market again.
SC Global is understood to have sold a penthouse at The Boulevard Residence recently for $30 million or $4,242 per square foot. In both absolute quantum and unit price terms, this is the highest achieved in the development.

The latest transaction involves a 7,072 sq ft triplex unit with five bedrooms and an 11-metre lap pool. Sources suggest that the buyer is from China but intends to live here.

It was the final unit to have been sold by the developer in the freehold condo at Cuscaden Walk which has 46 units. The 36-storey project was completed in 2005.

The unit is one of two identical 'super penthouses' in the development. SC Global sold the first such penthouse back in 2006 for $16 million to Yoshiaki Murakami, a Japanese fund manager who was in the limelight a few years ago for an insider trading prosecution in Japan. That was the highest transaction in absolute price quantum in the development, prior to the latest deal. In unit price terms, too, the $4,242 psf achieved for the most recent transaction is the highest at The Boulevard Residence, surpassing the $3,933 psf that a three-bedroom standard apartment of 2,034 sq ft sold for in late 2007.

Another top-end condo deal recently took place at The Orchard Residences, where a 40-plus storey unit sold for $4,260 psf. The total price for the 1,808 sq ft unit, which has three bedrooms, was about $7.7 million. It was sold by the developer of the project, which is expected to receive Temporary Occupation Permit this month.

Property agents also highlighted another record of sorts that was set for a penthouse at The Ardmore Park condominium in July. The 8,740 sq ft unit sold for $30 million or $3,432 psf. Prior to this, the most expensive penthouse in the development was $20.5 million or $2,345 psf in 2007, the peak year for the Singapore luxury housing market.

The buyer in the latest deal is understood to be a Hongkonger, who is also a Singapore permanent resident. According to caveat records, the unit previously changed hands in December 2006 for $17.3 million, reaping the seller a cool profit. The seller is said to be a company controlled by Yunus Gafulbhai Bilakhiya. A person bearing almost the same name but with the family name spelt slightly differently, as Bilakhia, founded the Bilakhia Group of India, which is involved in the inks, agro chemicals, medical devices, education and investment businesses.
While it remains to be seen if these deals will mark a definitive return of interest in the luxury condo sector which was dominated by foreigners in the 2007 boom, Knight Frank managing director (residential services) Peter Ow says: 'This is the ultra luxury residential sector we're talking about, where buyers won't be affected by ups and downs in the property market. Singapore has opened up a lot in recent years and we're drawing foreigners keen to park their monies as well as live here.'

While the ultra luxury condo market may be starting to see a revival in activity, the price benchmarks achieved recently appear to be still slightly short of the records set earlier. In terms of absolute price quantum, the title is still held by an 8,051 sq ft unit at Boulevard Vue at Cuscaden Walk which was sold in November last year for $33.4 million.

In unit price terms, the record price was $5,600 psf for a 53rd level penthouse at The Orchard Residences sold by the developer in October 2007, although its buyer, who is said to have picked up the unit on the deferred payment scheme, has yet to lodge a caveat.