Upbeat outlook for market
The flight east by titans of the global finance industry is one of the positive factors driving the luxury residential property market this year, analysts say.
In an upbeat first quarter report for the 2010 luxury residential market, CB Richard Ellis found that a 'positive momentum of demand for leased premises continues to build on the back of strong economic growth prospects in the region'.
Analysts also believe asset values will continue to be supported by low interest rates amid limited new supply this year. Further measures by the government to regulate developer marketing practices and increase transparency in recent weeks may help to temper price growth in the coming months.
The relocation of HSBC chief executive Michael Geoghegan from London to Hong Kong, and several other bosses from multinationals, shows a turnaround in sentiment, particularly following the Lunar New Year.
'While Mr Geoghegan is taking up residence in company owned premises on The Peak, the relocation is significant in that it symbolises the importance of Hong Kong and regional markets as major sources of corporate revenue in the coming years,' the CBRE report stated.
HSBC's announcement on Geoghegan's move came amid reports that the head of investment and advisory for Thomson Reuters, and the chief executive of JP Morgan International Private Bank would both be relocating from New York, while the global co-chief of investment for RBS Coutts Bank would be relocating to Hong Kong from London.
Investment sentiment at the beginning of the quarter was somewhat muted, with Sino Land submitting a lower than expected winning bid of HK$10.4 billion for a residential site in Tai Po.
After a short lull, sentiment started to pick up once again after the Lunar New Year. New World Development and Wheelock Properties jointly won a tender for two sites at the Austin MTR station property development for HK$11.71 billion, or an accommodation value of HK$9,130 per square foot - the highest ever paid for a land premium.
