Property Digest, November 14, 2012
The number of office units sold in Hong Kong rose 35 per cent to 374 last month, against 277 sales in September, according to estate agent Ricacorp Properties. During the month of October, one transaction at Stanhope House in King's Road, Quarry Bay, was valued at about HK$2.4 billion, making total transactions for the month worth HK$7.04 billion, up 125 per cent from September. Ricacorp said the data reflected market conditions between mid-September and mid-October due to the time lag between a purchase and registering the sale. Head of Ricacorp's research department Patrick Chow Moon-kit said the increase in sales was helped by the further easing of monetary policy by the United States. With the resulting improvement in liquidity, investors were keen to snap up office units in Mong Kok and Kwun Tong. He expects to see more than 300 transactions every month over the next few months as well. Peggy Sito
Leasing will become the major challenge for the China retail property market in the next three years, according to international property consultancy Cushman & Wakefield. Rapid urbanisation, an emerging middle class and strengthened purchasing power have attracted many international retailers to set up stores in China. However, oversupply in the short term cannot be absorbed, the consultancy said in its recently released research report. Cushman & Wakefield, which was established 95 years ago, expects that in the coming years, the overall retail market vacancy rate will continue to rise. The prime commercial streets located in the busiest parts of cities will continue to experience significant growth, however, while quieter locations will be subject to a downward trend in rents, it said. Peggy Sito
