Stampede eases
The Standard
Thursday, December 22, 2011

With prices hitting all-time highs, indications suggest that the end of the Hong Kong property market's bull run is near after almost 24 months of unremitting spikes.

The outlook for prices in the luxury residential property sector is subdued.

Prices increased 6 percent from January to October this year, given the relatively low interest rate environment, tight supply and strong demand.

However, the slowdown in luxury home sales is being reflected in the market, with prices showing only 0.6 percent quarter-on-quarter growth as of August.

Luxury residential prices are expected this month to return to a level similar to that at the end of 2010 and price growth for the whole year will be flat.

Recently, China lowered the bank reserve requirement ratio for the first time in three years by 50 basis points, and the cut is expected to free up funds that can be used to create loans.

Although the move was expected to boost sentiment among homebuyers and stimulate property stocks, there is no sign of credit easing or relaxation of property curbs.

In Hong Kong, the Special Stamp Duty imposed on home transactions in November last year to push out speculators remains in force.

Government measures to curb overheating of the property market, and mortgage interest rate hikes, combined with global economic uncertainties, continue to dampen sentiment, causing potential buyers to stay on the sidelines.

Looking ahead, effective mortgage rates will continue the uptrend and rise further to more than 4 percent per annum, and many potential buyers are expected to remain as onlookers.

With this in mind, the average luxury residential price is projected to drop 13 percent in 2012. Cynthy Tang is an analyst of research and advisory at Colliers International. The real estate consultancy has integrated teams of specialists to speed up success for institutional and private clients by developing solutions to give their properties a competitive business advantage.

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Highs and lows
The Standard
Thursday, December 29, 2011

Hang on to your hat - the Hong Kong property market is taking everyone on a roller coaster ride. Housing prices climbed to their peak during the week of June 5, when the Centa-city Leading Index - which measures price movements in the SAR's property market - hit 100.72.

Last week, the index dropped to a 36-month low of 96.81.

Not long after prices reached their 2011 plateau, developers started launching sales at new projects.

According to Hong Kong Property, 14 new projects were introduced in the fourth quarter, with 2,770 new flats available so far - up 37 percent from 2,020 new units in the third quarter. These 14 projects could provide as many as 5,432 flats.

Projects in the New Territories represent about 70 percent of new inventory, or 1,914 homes. Hong Kong Island accounts for 20 percent, or 541 flats, and Kowloon 11 percent, or 315 flats.

However, the more flats developers threw on stream, the lower the prices became.

For example, at Festival City 3 in Tai Wai, Cheung Kong (Holdings) (0001) originally indicated it would price the new flats with reference to neighboring flats in the secondary market, or at least HK$9,000 per square foot. Instead, the first 240 flats were launched at an average of HK$8,113 psf - nearly 11 percent lower.

Phase three prices were also lower than those at Festival City 2, which fetched HK$8,300 to HK$8,500 psf when flats there hit the market in November last year.

A similar situation also unfolded recently at The Wi
ngs, developed by Sun Hung Kai Properties (0016). The first batch of 50 flats atop Tseung Kwan O MTR station sold in October at an average HK$12,698 psf.

Two weeks later, SHKP introduced new batches averaging HK$8,118 psf - 36 percent cheaper.

Centaline Property co-founder Danny Wong Man-yin said this trend may signify that developers feel pessimistic over the market outlook.

"As developers are generally viewed as the smart money in the industry, their moves to cut prices may adversely impact the market confidence of secondary owners and buyers, as their action implies the outlook is negative," he said.

During good times, Wong noted, new apartments generally command prices about 30 percent higher than secondary homes in the same area. But now, the premium is only around 10 percent.

"If the developers felt optimistic about the market, why price the flats so low?" Wong said.

Woes in the primary market have a huge impact on secondary units.

"Buyers' attention has drifted to the primary market, as some new projects are priced close to the neighboring secondary flats," said Midland Realty vice chairman Albert Wong Kam-hong.

During the past four-day Christmas break, only 16 transactions were recorded among the city's 10 benchmark residential projects, compared with 67 deals last year, and 80 in 2009. Transactions on the previous weekend were even lower - at eight.

Danny Wong partly blames property price drops on the mainland's slumping export volume.

"Mainland exports are slowing down, and buying interest from the mainlanders has slowed dramatically due to the deteriorating economic outlook," he said. "It wouldn't be surprising to see some of them selling their properties in Hong Kong to cash out."

Mainland buyers have become a major force in the local housing market, accounting for about 30 percent of sales at some primary residential projects - up from only 2 percent in 2008.

"Thirty percent is a rather high level. I don't see it climbing further next year," said Eddie Hui Chi-man, deputy director of Hong Kong Polytechnic University's Research Centre for Construction and Real Estate Economics.

"Some of them might be affected by the decrease in exports. But don't forget there are home purchase limits in effect in the mainland property market. If they can't invest [there], they can only go to other places.

"Hong Kong would still be one of their most preferred areas to buy property."

Hui said the local property market will stabilize if China's economic growth can be maintained at 8 percent next year. He foresees housing prices here slipping 5 percent in 2012.

Most property experts predict price drops ranging from 10 to 20 percent next year. However, former UBS property analyst Franklin Lam Fan-keung - who is known for his bullish views - forecasts prices to rise by 15 percent instead, despite a 5 percent dip in the short term.

"Exports in Hong Kong are still weak, due to the debt issues in Europe," said Lam, founder of the think-tank HKGolden50. "That will put some pressure on property prices in the short run.

"However, it has a limited effect on the unemployment rate, which remains at a low level. Expansion of the workforce will drive the hike in residential demand. Along with the continual low interest rate environment, and the tight land supply, the property market next year should see healthy development."

Lam cautioned the government against changing its policies according to market conditions, suggesting instead that it make the market adapt to existing policies.

Earlier this month, Secretary for Housing and Transport Eva Cheng Yu- wah hinted that the administration may review the Special Stamp Duty before it hits the two-year anniversary mark.

But the next day, Chief Executive Donald Tsang Yam-kuen reiterated that he has no intention of removing the property cooling measures.

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Developers in clash over new housing sale rules
The Standard
Friday, January 06, 2012

Developers and surveyors clashed yesterday over exempting completed homes from rules the government is drafting on the sale of new residential properties.

The Real Estate Developers Association initially welcomed the draft.

But at a special meeting of the Legislative Council yesterday, it demanded the exemption, saying completed flats do not require the same detailed area description as units for presale before they are built.

"Completed flats allow buyers to have a clear look at what they are buying before they decide, whereas pre- sales do not," said association secretary general Louis Loong Hon-biu.

But surveyors disagreed.

"It does not make sense to omit them from regulations just because they can be physically viewed," said Lawrence Poon Wing-cheung, a specialist in real estate development at City University of Hong Kong.

"There are simply too many details that would exist in firsthand flats that do not exist in secondary transactions."

At new projects, how well sales are going, prices of other flats and received reservations can all affect sentiment of buyers, Poon said. "But for secondary sales, it is a one-on-one situation and prices are negotiable."

The government proposed replacing gross floor area with saleable area as there is no standard definition of GFA.

"Buyers can't be well protected with prices laid out in GFA, which is defined differently with different developers," said Consumer Council vice chairman Ambrose Ho Pui-him.

But REDA demanded the standard be set before the legislation.

The council also warned about gray areas in the legislation.

"Developers can sell all the new flats to its subsidiary company to make them secondary, in order to avoid the regulations," Ho said.

Galaxy quest
The Standard
Thursday, January 12, 2012

It's a rental show flat with a difference. The ceiling is just 1.5-meters high and the unit 18 square feet in size. But the would-be landlord proposes to charge HK$3,500 per month rent, which works out at HK$194 per square foot - more expensive than a luxury apartment in Repulse Bay.

Welcome to the world of capsule cubicles - a living concept popularized in Japan, a country of limited land resources. These urban guesthouses were created as short-term accommodation for suburban workers who, having missed the last train home, had to find inexpensive no-frills places to spend the night.

The typical daily rate for a capsule in Tokyo is 4,000 yen (HK$404).

Hotel equipment supplier Wong Wai-lun recently brought the idea to Hong Kong, designing and building 24 such capsule cubicles in a 1,000-sq-ft flat at Rockson Mansion, on Water Street in Sai Ying Pun. The location is within walking distance of the University of Hong Kong, from where he hopes to attract renters.

This "capsule dormitory" offers bed spaces, each equipped with air- conditioning, a lamp, television and computer desk. There is even free wi- fi and a study room in the common area.

The operator, Galaxy Stars (HK), started promoting the facilities on the internet two months ago, but has decided not to rent them out just yet.

After East Week magazine, a sister publication of The Standard, ran a five- page article on Wong's business idea last week, describing it as a completed dormitory, it caught the attention of the public - and government authorities.

A spokesman for the Home Affairs Department cited the Bedspace Apartments Ordinance, which requires any flat where there are 12 or more bed spaces to apply for a license from the Office of the Licensing Authority before commencing operations.

As for fire safety, the Fire Services Department said it will give advice to applicants in terms of architecture, structure and firefighting devices only when it receives orders from the licensing authority.

So far, the authority has received no application for a "capsule-like" guesthouse, or bedspace apartment.

To avoid having to comply with stringent, time-consuming and possibly costly regulations, Wong has turned the 24 capsules into a show flat only. But the company is still asking interested parties to pay a HK$1,750 deposit to get on a waiting list.

"Give me a deposit of a half-month's rent and we will put you on the waiting list for the dormitory," said the property agent listed on Galaxy's website.

"When you finally decide to move in, we will charge you three months' rent. We will later provide you space in a 10-capsule dormitory in another residential unit adjacent to HKU."

Accommodation for 10 people would circumvent the guesthouse licensing requirements.

The agent said men and women will occupy separate dormitories, which will be built only after the operator receives 15 applicants from each sex. So far, eight females and five males have applied.

The HK$1,750 deposit is nonrefundable if an applicant changes his or her mind, the agent said.

Although loathed as a "glorified coffin" by netizens, capsule bedspaces hold a competitive edge in that they rent for only HK$3,500 per month, including utility charges. In comparison, it costs HK$9,000 to HK$10,000 to rent a 400-sq-ft flat in private housing in Sai Ying Pun.

HKU's insufficient accommodation has been swamped with mainland students in recent years.

"It is so hard for us to apply for a dormitory in the university," said Pinky, a Hongkonger who is interested in the capsule.

She currently lives in Tuen Mun and needs to spend about HK$40 per day for transportation, with a two-hour commute each way.

"More mainland students are competing with us for dormitory space," Pinky said. "The school is so strict on applications, requiring high scores and a good interview."

According to HKU data, 3,849 units were offered during the 2011-12 academic year, while the number of applications exceeded 5,500. For the 1,600-plus students who failed to secure the HK$2,258-a-month dorms, the only option is to rent off-campus, with nearby Sai Ying Pun among the top choices.

But the district's rental market has been strained in recent years due to the huge demand from students, as well as redevelopment in the region.

A proposed MTR station in the district also makes the property projects there more expensive.

"This is just a trial unit in the student market," said Wong, who is optimistic about the outlook for his capsule cubicles. "Hong Kong is facing a shortage of hotels and my project will be popular among backpackers."

He also said his capsules will have no problems meeting safety standards, as the master flat is equipped with an automatic sprinkler system, and there are two emergency exits. Smoking is prohibited, with a smoke detector installed in each capsule.

Wong said he is licensed by the Education Department to provide tutoring services to the study room in the unit.

But Midland Realty sales director Patrick Fung Kim-chiu remains skeptical. "I don't think such an idea can sustain for long, especially for students who are just curious about new trends," he said.

Meanwhile, other students said the tiny capsules are expensive and they prefer to share a regular HK$9,000 flat with three or four friends.

Leung aide feels Tang slap at URA 'impractical flats'
The Standard
Friday, January 13, 2012

Chief executive candidate Henry Tang Ying-yen has criticized the Urban Renewal Authority for constructing "impractical luxury flats" and selling them at "sky-high prices."

The URA is chaired by Barry Cheung Chun-yuen, who is also the election campaign office chairman of rival Leung Chun-ying.

Speaking after a visit to a Yau Tong industrial site, Tang said: "I do not support that the URA is constructing buildings that are flashy and without substance as well as extravagantly expensive. The URA can reconsider the direction of its responsibility." He believes that after the URA resumes and demolishes buildings, the government should decide what to do with the land.

For example, it may be used for more Home Ownership Scheme flats or public housing.

Tang believes the scope of the URA should also be extended to industrial buildings.

Cheung said he would not comment on Tang's remarks but stressed that the URA has done a lot of work in renovating old districts.

The government also recognized the role of the URA.

A URA spokesman said the cost of flats is based on the market price. No one will buy if prices are set too high, and they will encourage speculation if set too low.

"The URA does not make a profit for itself. All the profits made are allocated to other projects."

Separately, when announcing his latest policy platform at his election office in Central, Leung proposed the establishment of a financial authority apart from the Hong Kong Monetary Authority. He suggested that a financial development council be set up.

This immediately drew fire from former Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong, an adviser to Tang, who warned of economic instability.

"The council would not replace the existing HKMA," said Leung, adding that the idea of a council is something akin to a statutory or public body such as the Trade Development Council or the Tourism Board.

Leung also proposed reviewing the Hospital Authority over management, working hours, cost benefits and service levels. "It has 20 years' history and there have been lot of changes in service level, scope of services, and society has changed too," he said.

DEVB's statement on Urban Renewal Authority's work
Thursday, January 12, 2012
Government Press Release

In response to media enquiries on the work of the Urban Renewal Authority (URA), a spokesman for the Development Bureau said today (January 12) that the URA, as a statutory body, had all along adhered to the Urban Renewal Authority Ordinance and the Urban Renewal Strategy in pursuing its work.

The Urban Renewal Strategy is a Government strategy. The Secretary for Development, after consulting the public, may prepare from time to time an urban renewal strategy. Following the promulgation of the new Urban Renewal Strategy by the Government in February last year, the URA has swiftly devised concrete implementation measures, including the "flat for flat" scheme, as well as the new "facilitator" scheme and "demand-led" scheme for urban renewal.

When it comes to environment SAR passes tests
The Standard
Wednesday, January 11, 2012

Rigorous testing procedures, state-of-the-art facilities and a robust accreditation system have put Hong Kong on the world map of environmental testing, according to a specialist.

"Hong Kong's best assets [in the industry] are our top-notch testing services that meet international standards and our large pool of highly trained specialists," said Richard Fung Lim-chee, general manager of ALS Technichem (Hong Kong).

The private laboratory uses various methods to analyze soil, water and air samples, and provides a testing service to industry and government agencies in the region.

Employing these services allows them to make informed decisions for environmental and construction projects.

Left undetected, toxic metals and organic pollutants could cause "unremitting damage" to the ecological system, Fung said.

And they can lead to serious illnesses among those living in the contaminated area.

Environmental protection, an emerging area that holds tremendous potential for the local testing and certification industry, is one of six industries the government has strived to develop since 2009. The territory now has about 700 industry-related companies that employ around 15,000 workers.

A spokesman for the Innovation and Technology Commission cited a robust accreditation system as a big reason for the industry's established international reputation.

He said it is a result of "tests, calibrations, certifications and inspections provided by the commission's accredited service providers."

Past and current projects of ALS Technichem include analyzing environmental samples at the former Kai Tak airport, Hong Kong Disneyland and the area under the Hong Kong-Zhuhai-Macau bridge, which is due for completion in 2016.

A media tour of its laboratory showcased various tests being conducted by local scientists.

Samples are put through chemical tests to detect toxic heavy metals and organic pollutants. If necessary, the samples then undergo biological testing to measure their toxicity levels.

Each sample takes about six to eight weeks to be processed.

"We have many different stages of testing and strict protocols, so there is almost no chance that a dangerous pollutant can be left undetected," laboratory manager Godfrey Chan Kwok-fai said.

Cheung Kong to slick up Oil Street with hotel, flats
The Standard
Monday, January 16, 2012

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Cheung Kong (Holdings) (0001) is planning an 800-room hotel and a 400-unit luxury residential project on Oil Street in North Point.

It is awaiting Town Planning Board approval that will see seven towers, each more than 100 meters tall, erected on the 84,898-square-foot site with one of them designated for a 39-story hotel.

The remaining towers of between 35 and 38 stories will, Cheung Kong said, be designed for hotels and apartments.

Residential units will have an average size of 1,110 sq ft.

The buildings would offer a total gross floor area of 755,600 sq ft. Of that, 322,900 sq ft will be for hotel purposes, and 432,700 sq ft for apartments.

There are also plans to include 75,350 sq ft of public space. Construction is set for completion by 2017.

"With only around three meters of ceiling height on average, it would be a challenge for the developer to make the hotel rooms look spacious, especially when it is likely to be a five-star one," said Vincent Cheung Kiu-cho, Cushman & Wakefield national director for valuation and advisory services.

He said five-star hotels usually have ceiling heights of more than four meters.

Charles Chan Chiu-kwok, managing director of Savills Valuation and Professional Services (Greater China) said the flats would be in demand.

"The residential portion shouldn't have too much impact on the market in the locality. The area should be able to absorb all 400 units since demand of flats on Hong Kong Island is still high."

Chan estimates the cost of developing the residential towers at HK$3,000 psf, while that for the hotel tower will come in between HK$4,000 and HK$5,000 psf.

In August, the developer won the tender for the site, having bid HK$6.27 billion, or HK$8,294 per buildable sq ft.

Surveyors urge plot-size cuts to help small developers
The Standard
Tuesday, January 17, 2012

A leading surveyors' group has called on the government to downsize some development projects to give more small and medium-sized developers a better chance to compete.

The comments from the Hong Kong Institute of Surveyors come after a Tsuen Wan site estimated at HK$7.3 billion was withdrawn by the MTR because bids were low. An adjoining plot was sold to Chinachem for HK$2.6 billion last Thursday.

"When project costs are often HK$2 billion to HK$3 billion, how many developers in Hong Kong can actually afford to invest? That's one of the reasons why we are seeing major developers dominate the property market now," said Raymond Chan Yuk-ming, planning and development division chairman.

Chan said competition should be encouraged. "When large projects are chopped into pieces, total consideration for investment would be smaller, to only around HK$3 billion to HK$5 billion. That will attract competition from smaller developers, too."

As for the general market, the institute said there is little visibility. "It would not be a surprise if withdrawals happen again. Sites sold by tenders are likely to be lower than market expectations," said Lawrence Poon Wing-cheung, chairman of the housing policy panel of the institute. Poon expects more sites will be put to tender this year.

"There is a chance that a site could fetch a higher price at a tender," he said, noting that developers are likely to submit higher bids if they are truly eager to grab a particular site.

More hotels in offing but room shortage still feared
The Standard
Tuesday, January 17, 2012

Hong Kong will have another 49 hotels - or 9,000 additional rooms - in four years. But this may still not be enough, with the tourism chief suggesting the renovation of industrial buildings to keep pace with visitor growth.

Secretary for Commerce and Economic Development Gregory So Kam- leung said yesterday he expects there will be 238 hotels in the city by 2016 - 49 more than at present, with 16 of them coming on line this year.

He said the number of hotel rooms will climb to 71,340 by that time - 9,000 more than now.

However, tourism commissioner Philip Yung Wai-hung hinted that this may still not be enough though it is hard to plan ahead since the government only releases land for hotel use on a year-to- year basis in line with tourism growth. Last year, plots in Sai Kung and Hung Hom were earmarked for such use.

"I think we can also make use of renovated industrial buildings to increase the supply of accommodation for tourists," Yung said.

The Hong Kong Tourism Board said last week that a record 42 million tourists visited the SAR last year, up 16.5 percent from 2010, with mainlanders accounting for 67 percent of the tourist arrivals.

Board chairman James Tien Pei-chun said he expects tourist arrivals to grow 5.5 percent this year over 2011.

Yung said the government will need to improve the capacity of immigration counters to prepare for more mainland visitors coming to Hong Kong.

He also said the Travel Industry Council has told travel agencies in the mainland that they need to ensure the accommodation is confirmed before sending tours to the SAR.

One way to ease the burden on Hong Kong hotels is to encourage more mainland tourists to take one-day trips, Yung said.

The commissioner also said the government hopes Hong Kong Disneyland will have new attractions from time to time to draw more tourists.

The park earlier revealed it has been in talks with the government over a further expansion, although it stressed nothing has been confirmed.

So also shed some light on several other issues, saying the government has submitted the applications for three free- to-air channels to Chief Executive Donald Tsang Yam-kuen and the Executive Council, but he cannot reveal more details because of confidentiality.

Old quarry grows green
The Standard
Thursday, January 26, 2012

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Gray granite has been transformed into green for 35,000 residents of Kwun Tong District - but not without great challenges.

Converting a former quarry into a public park involved great efforts in design and development.

Choi Hei Road Park opened in August 2010, but residents of two neighboring estates, which it serves, did not start moving in until April last year.

"We have made great efforts in landscape design as well as drainage and sewerage works," Deputy Director of Housing Ada Fung Yin-suen said. "The construction and demolition of the original site was kept at a minimal level to keep its soil and bedrock."

The quarry in Jordan Valley, Ngau Tau Kok, ended rock extraction in 1976. Now the park provides greenery for 17 public estates, including Choi Ying, Choi Tak and Choi Fook estates.

With an area of about 13,560 square meters, the park has a theme garden with a meandering walking trail and sitting-out facilities, a children's play area, an elderly fitness area, a tai chi garden and a foot massage path.

With little natural vegetation, Fung said the project was challenging to architects. Landscape architect Chan Hon-wing said the main challenge was to produce a design with environmental, social-behavioral and aesthetic features.

Designs were made to conserve the natural granite as well as transplant trees.

"The design theme of a geopark was adopted to conserve the natural granite, which is a rock type commonly found in Hong Kong," Chan said.

Indigenous granite specimens and information boards are displayed along the walking trail to help visitors get a better understanding of geo- conservation and geology. The project includes 91 mature trees.

"Trees and shrub planting have been provided along the periphery of the park, offering shade and amenity areas for visitors," Chan said.

In addition, the design of the park's public lavatories made use of natural lighting and ventilation to reduce energy consumption.

Visitors pay for squeeze in rooms
The Standard
Thursday, January 19, 2012

A drawcard for visitors from across the seas and across the border, Hong Kong is also an expensive destination. Lodging in particular, is costly - whether it be a backpacker hostel or luxury room with brandname toiletries and walk-in closets.

A hotel room cost more than HK$1,300 a night last year on average, according to industry data released on Tuesday. Rates have increased at a double-digit pace.

Of the 41.9 million visitors last year, more than half were from across the border and they too put up with the high prices and stayed the night in available rooms. On average, more than 260,000 visitors stayed the night last year. And Hong Kong has only 62,655 hotel rooms, whether during peak periods such as the summer holidays or other holidays including Christmas and Lunar New Year.

The Hong Kong Tourism Board projects that the average traveler will spend 3.5 nights this year.

A shortage of rooms may discourage business travelers as well. Arrivals for meetings, incentives, conventions and exhibitions, or MICE, increased by 10 percent last year to 1.5 million, trailing the government forecast of 12 percent growth.

Tourism board executive director Anthony Lau Chun-hon said the shortage of hotel rooms will hinder the growth of high-spending travelers.

Chairman James Tien Pei-chun added: "Room rates are like 'seafood price' [fluctuating vigorously], and even hotels far away from the city center are constantly full. That would look unwelcoming to visitors."

Hotel rooms were 88 percent full last year, leveling with historic highs of 1996, according to the Federation of Hong Kong Hotel Owners.

The hoteliers this week said that average hotel room rate was HK$1,343 last year, up 19 percent from a year earlier. It was a record high. That compares with a 6 percent drop in Asia in the first half last year, a survey by Hotels.com shows.

Room rates surged late last year, rising even higher at peak holiday periods, Tien said.

Some three-star hotels charge well over HK$2,000 for a room, while rates at top-tier luxury hotels including The Peninsula and Four Seasons may reach HK$5,000-plus a night. Even "love hotels," which usually only rent by the hour, charge HK$1,800 for an overnight stay.

Not everyone's wallet is lighter after a stay in Hong Kong, though. Backpackers, especially young visitors, cram into youth hostels - some for the experience of being with like-minded individuals and others to save money.

But while rates at hostels range from HK$150 to HK$200 for a bunk bed and HK$350 to HK$600 for a double room, travelers may end up paying HK$1,000- plus a night during busy months.

Budget travelers may also consider guesthouses with nothing except a bed and hot water. Most are in city centers, with convenient access to public transport.

There are others in less pleasant environs. Sincere House in Mong Kok, for example, has numerous budget guest houses. In some places, broken toilets or soiled linen are not unheard of.

Some travelers may instead opt for more comfortable lodgings in Macau or Shenzhen, and shorten their stay in Hong Kong.

But wherever they choose, they will have to secure them well in advance.

This year, though, there may be fewer visitors and there may be a little less demand for lodgings. The tourism board has made a "conservative" forecast of 5.5 percent growth in visitor arrivals this year, while the number of MICE travelers is forecast to increase by 11 percent.

As visitor numbers increased last year, complaints about the quality of the accommodation also grew. Reacting to the concerns, Tien has repeatedly urged the government to boost the supply of land for hotels.

This week Secretary for Commerce and Economic Development Gregory So Kam-leung said the government may consider renovation of industrial buildings.

The government sold three hotel plots this fiscal year to provide about 1,500 rooms.

Michael Li Hon-shing, executive director of hotel owners' federation, has rejected Tien's suggestions of room shortages. "There are some times of the year [about four months] that rooms are tight, but you can't say there are not enough hotels by just that."

As many as 8,000 new hotel rooms are in the pipeline through 2013. But Li admits there is a need for more lower-tier hotels in the long run.

In the meantime, leading hotel groups are hardly rushing to add sites to their portfolios.

Shangri-La Asia (0069) acquired a hotel plot in Hung Hom Bay last month for HK$2.3 billion, or HK$3,461 per square foot. An analyst said it was a low price and wondered: "Why didn't the government just withdraw the tender?"

In November, Ocean Park said it could not attract qualified bidders for its two proposed hotels, scheduled to open by 2013 and 2015, having extending a tender for half a year.

Before the government resumed regular land auctions, there have been "hotel only" sites available on the application list, but none of them has been triggered for sale other than one site in Sai Kung last year.

Alfred Lau, a property analyst at Bank of Communications International, said that while there had been a shortage of land for hotels some mid-sized developers have acquired whole commercial buildings.

Lau said the government should increase supply of smaller plots for three- to four-star hotels to accommodate more visitors from the mainland.

Sino Land set to put another 1,200 new homes on market
The Standard
Tuesday, January 31, 2012

Sino Land (0083) is planning to market more than 1,200 homes at three new projects this year.

The homes - sized from 200 to 2,000 square feet - will range from studio flats to some large specialty units.

Baker Residences in Hung Hom is likely to be put out as completed flats within the first quarter. The 22,357-sq- ft residential gross floor area will house 68 studio flats, ranging from 200-300 sq ft. Another two projects in West Kowloon and Tai Po will be launched later in the year.

The West Kowloon project at Beech Street and Ivy Street is a redevelopment project with the Urban Renewal Authority. With 187,939 sq ft of residential gross floor area, it is expected to provide 460 units sized between 300-2,000 sq ft.

Phase 2 and 3 of Providence Bay in Tai Po will consist of 740 units. The project will have a mix of one- to four- bedrooms flats, ranging from 800-3,000 sq ft. Detached houses in the project may be as large as 3,600 sq ft.

"As mortgage rates will stay low for some time, we are quite positive on the property market this year as it is also supported by huge demand of end- users," said Victor Tin Siu-yuen, general manager of sales at Sino Land.

As for projects currently on the market, the firm said it had generated around HK$13.8 billion from selling flats at three developments.

It has sold around 640 out of 740 flats at The Coronation in West Kowloon, generating HK$7 billion. About 92 out of 120 flats at One Mayfair in Kowloon Tong have been offloaded for HK$3.3 billion, and another HK$3.5 billion has come from selling 170 out of 480 units at phase one of Providence Bay.

Meanwhile, Cushman and Wakefield said local flat prices face stiff pressure this year as global economic uncertainties are unlikely to fade away soon.

Mass market property prices may drop by 10-15 percent while luxury projects - those that cost more than HK$30 million - may fall by 5-10 percent, the real-estate consultant predicted.

New homes target set at 30,000 units
The Standard
Thursday, February 02, 2012

Land supply will be raised to build 30,000 private residential flats in the upcoming fiscal year, the government pledged yesterday.

John Tsang also announced that 47 residential sites being added to the application list will aim to provide 13,500 units.

"Our policies already in place have been effective," Tsang said, adding residential prices have fallen 5 percent since last June.

But the proposed supply is below what was outlined in the previous budget, which offered 52 sites providing up to 16,000 units.

Land sales in the 2012-2013 fiscal year could generate HK$60 billion versus HK$83.1 billion in the previous year.

New supply will mainly come from four projects along the West Rail, another three owned by MTR Corp (0066), and redevelopment projects of the Urban Renewal Authority.

Two other projects, above the West Rail Kam Sheung Road Station and Pat Heung Depot, will provide 8,700 units. Government sources said tenders would be called for the two sites, meant for small flats.

Real Estate Developers Association executive committee chairman Stewart Leung Chi-kin said the government should figure out the market appetite for land supply before releasing new sites.

"With high land price comes high flat prices, that's the very basic rule of thumb for developers. The government needs to consider whether developers would be able to keep buying."

He also urged the government to lower the reserve prices so that it will not have to withdraw sites when there are no takers.

But a government source rejected the contention that land prices are set at high levels.

Bricks & Mortar property analyst Eric Wong Chun-ya questioned the proposed 30,000 units goal.

"Right now, the market has a land inventory of 60,000 units - from empty sold sites to developed sites where flats are not yet sold. That is too little to provide 20,000 units per year."

An inventory of at least 100,000 units is needed to meet the goal, he estimated.

As for subsidized housing, the Housing Authority will consult district councils on six sites for new Home Ownership Scheme flats in Sha Tin, Tsuen Wan, Kwai Tsing and Yuen Long.

On the commercial front, the URA will be responsible for revitalizing old industrial areas for residential or commercial use.

Bernard Lim Wan-fung, president of the Hong Kong Institute of Urban Design, said the expansion of URA's portfolio bodes well for urban development as old industrial areas are prime sources of land.

URA will launch a pilot scheme to redevelop industrial buildings this year.

Cutting up sites to level playing field
The Standard
Friday, February 03, 2012

Large residential sites will be divided into smaller parcels in an attempt to attract small and medium- sized developers to compete with heavyweights.

To start off, four large sites - with a combined area of 1.829 million square feet in Tseung Kwan O, Tuen Mun and Tai Po - have been split into eight smaller sites, the government said yesterday.

"We believe the availability of smaller sites for sale would enhance market competition, particularly in the current situation," said Secretary for Development Carrie Lam Cheng Yuet-ngor.

"We will continue to apply this to other suitable sites without compromising the planning intent."

The 398,265-sq-ft site at Tseung Kwan O area 68A could provide one plot of 229,336 sq ft and another of 171,889 sq ft.

Seven of eight sites that will be split into smaller parcels are included on the new application list.

In the 2012-2013 fiscal year, 24 residential sites and one commercial plot have been added to the application list, taking the total to 47.

Stewart Leung Chi-kin, chairman of the Real Estate Developers Association executive committee, welcomed the idea, saying policy is being adapted to meet popular demand in the market.

Lai Yu-chung, project planning manager of Billion Development and Project Management, a small developer, said: "A smaller lump sum for a plot is of course attractive, but it would not be the sole consideration for us in buying land. Joint ventures are often seen among developers anyway."

Serena Lau Sze-wan, president of the Hong Kong Institute of Surveyors, said the idea would "not have too much effect on land prices."

For the first time, two residential sites at Kai Tak were included on the application list.

"Residential demand in the area is very likely to surge," said Amy Teo of Sun Hung Kai.

Tai Yuen Street / Cross Street Redevelopment, Wan Chai

2/5

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More to bottom lines than cash
The Standard
Thursday, February 02, 2012

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The cinema at Times Square is being converted into retail space, triggering a bidding war among brand-name shops for leases.

The enthusiasm of potential tenants has apparently not been affected by concerns that tightened mainland money supply might impact the high-end consumer market.

Like all companies that understand the importance of establishing a firm foothold to capture a piece of the lucrative China market, European luxury brands aren't just looking at short-term factors.

I'm told one of the brand-name bidders is particularly keen, as it doesn't yet have a sizable flagship storefront here.

Meanwhile, retail properties on the other side of the harbor are doing just as well.

As no more sizable shops are available at Harbour City on Canton Road, the value and rental levels of premises in the vicinity are skyrocketing.

I heard that a watch shop there has just renewed its lease at three times the original rent. While that was said to be on the low side, a threefold increase is still staggering.

As if this isn't shocking enough, there is street talk that an owner who put his shop up for sale last year at HK$1 million per square foot has just rejected an offer.

The reasons: he's no longer urgently in need of cash, and has decided to boost the asking price to HK$1.3 million psf.

While a square foot price of seven digits is prohibitive, shop space on Canton Road will always remain in great demand, as brand-name outlets all want to establish a presence in the "Shoppers' Mecca."

With retailers shelling out astronomical rents to operate there, it's understandable that they will do everything they consider necessary to protect business.

The recent photo saga at one of the shops there that made international headlines is a case of such a mentality going to the extreme.

The painful incident should teach everyone a lesson - no matter how much you're paying to run your business, there are certain bottom lines you just can't cross.

Siu Sai-wo is chief editor of Sing Tao Daily

Market awaits 5,470 new flats
The Standard
Friday, January 27, 2012

As many as 5,470 new units from a dozen property projects will likely come on the market following next week's budget.

The 12 developments are in Tsuen Wan, Tuen Mun, Che Kung Temple, Ma On Shan, Fan Ling, Discovery Bay, Sai Wan, Hung Hom, Tai Hang Road, Ma Wan and Kowloon Shing.

The highest number of flats, 1,720, will come from the TW7 development near Tsuen Wan West MTR station, jointly developed by Cheung Kong (Holdings) (0001), Nan Fung Development, and MTR Corp (0066). These will be two-to-four bedroom units sized between 660 and 2,000 square feet.

Cheung Kong has hinted prices will be comparable to those at Festival City in Tai Wai - now costing between HK$7,900 and HK$8,300 psf.

Sun Hung Kai Properties (0016) and MTRC are also expected to release flats from the project atop Tuen Mun MTR station, providing 1,100 units. A market source expects the flats to be priced between HK$6,000 and HK$8,000 psf.

SHKP is also set to launch phase six of Park Island in Ma Wan soon, as presale consent has been received. It will provide 65 three-to-four bedroom units, sized between 1,200 and 2,200 sq ft.

New World Development (0017), Wheelock & Co (0020) and Sino Land (0083) will also launch new homes.

Meanwhile, Kerry Properties (0683) said it has pocketed HK$70.06 million by selling two flats at The Altitude in Happy Valley.

The buyers are Dragon Era Holdings and Soaring Dragon Holdings owned by brother and sister-in-law of Kerry Properties' chairman Kuok Khoon Chen.

Last month, the developer sold two flats and two parking spaces at The Altitude to its sister firm, Kerry Trading Co, for HK$94.83 million. Kerry shares rose 3.81 percent to HK$30 yesterday.

Stance softens on sites for small flats
The Standard
Thursday, February 09, 2012

The government may have softened its approach to boosting the supply of small and medium flats.

Secretary for Development Carrie Lam Cheng Yuet-ngor said in a radio interview that the government may release fewer residential sites with stipulations on the size and number of flats to be built.

"The Home Ownership Scheme as well as projects along the MTR stations and redevelopment projects by the Urban Renewal Authority will provide small and medium flats in the near term," Lam said.

"As these flats will help meet the demand, it may not be necessary to attach flat-size stipulations for the sites meant for private development projects."

But, she added, flat-number stipulations will still be attached to some plots, such as four of the five sites to be sold from April to June this year.

Her remarks were in contrast to those made by Financial Secretary John Tsang Chun-wah in his budget.

He said the government will "follow the practice of announcing land sale programs in advance on a quarterly basis, and stipulate flat-number or flat-size restrictions in land sales in the light of market conditions and the characteristics of individual sites."

Last month, the Bayside project near the Tsuen Wan MTR station was withdrawn from sale by the MTRC.

The project could have provided 2,384 units in nine buildings. But the conditions required that 52 percent of the flats must have a salable area of less than 538 square feet.

Developers have criticized conditions relating to the size or flat numbers.

Victor Cha Mou-zing, managing director of HKR International, described the conditions as "over-interference."

He added: "The government already has the tools to regulate home supply... and these restrictions hinder developers from using their experience to release the potential of the land parcels."

Central drawcard
The Standard

Thursday, February 09, 2012

Developers' confidence in the property market does not appear to have been affected by new land supply announced by the government last week. Many of the firms are keen to shore up their land bank judging by the interest in an Urban Renewal Authority development in an area near the Central district where historical features abound.

By Friday, 18 developers had expressed interest in a site on Peel Street and Graham Street in Sheung Wan. Seven developers also submitted tenders for a site at So Kwun Wat in Tuen Mun.

Both plots were released a day after the government revealed 47 sites on the application list for fiscal year 2012-13.

Cheung Kong (Holdings) (0001), Kerry Properties (0638), Sun Hung Kai Properties (0016), Henderson Land (0012), Emperor International (0163), New World Development (0017), China Overseas Land and Development (0688) and Asia Standard International (0129) all expressed interest in the URA site.

Kerry Properties and Emperor International said they plan to develop the site by themselves.

The authority will invite tenders from developers once a short list has been drawn.

The site is one of three pieces of land forming a bigger redevelopment masterplan along Gage Street.

The 18,191-square-foot site - the middle one of the three - is the first to be put to market.

It has a gross floor area of 191,492 sq ft and could provide 177 flats and 32,000 sq ft of retail space for fresh food.

Unlike at previous authority projects, there are no conditions attached to the site.

Old buildings on the site have been demolished. The other two sites in the plan are likely to be completed by 2021.

The entire development - with a site area of more than 57,000 sq ft and estimated to provide 737,683 sq ft of gross floor area - will have a mix of residential, commercial, office, hotel and community space.

It will be able to provide 300 homes.

The project involves 37 existing old buildings, four of which are prewar structures.

Midland Surveyors director Alvin Lam Tsz-pun said the site offered new residential supply near the core business district in Central. "Plus, there are quite a lot of shops and restaurants nearby, which would add high value to the retail space."

Lam estimates the plot will fetch HK$1.72 billion, or HK$9,000 per buildable sq ft.

The market expects between HK$1.53 billion and HK$2.87 billion, or HK$8,010-HK$15,000 per buildable sq ft.

There are few residential units in the area. The closest new project on the market is CentrePoint at Staunton Street and Chung Wo Lane, which is two blocks from the URA project.

Some flats at CentrePoint have yet to be sold by the developer, Henderson Land. New units cost HK$19,758 per sq ft on average. Buyers have put some flats on the secondary market.

The owner of a 486-sq-ft flat on an upper floor intends to sell for HK$9.3 million, or HK$19,136 psf.

The same owner is also interested in leasing the apartment for HK$51 psf per month.

Century 21 chief operating officer Chan Tung-ngok believes the site will attract "conservative" tenders from developers. He predicts bids ranging from HK$1.53 billion to HK$1.91 billion, or HK$8,000 to HK$9,000 per buildable sq ft.

Chan Cheung-kit, a director at Lanbase Surveyors, said some small and medium-sized developers would be attracted because of the site area and absence of any conditions related to flats that may be built.

Rich flats look inviting to migrants
The Standard
Monday, February 13, 2012

About 100 seniors, mainly professionals and some migrants, have expressed a wish to retire at luxury homes provided by the Housing Society.

The new "Joyous Living" projects at Tanner Hill in North Point and Wetland Park Road in Tin Shui Wai provide a viable option for the more affluent of the territory's 1.5 million seniors despite criticism about their prices, chairman Yeung Ka-sing said.

Michael Cheng, now living in Santa Barbara, California, told The Standard he is interested in the scheme.

"My wife and I have been living in the United States for the past 40 years and are approaching retirement age," he said. "We would like to retire in Hong Kong, and we have recently received our Hong Kong residency cards."

Cheng said he is keen to proceed with the application procedure.

"Please advise on how we may be able to resolve our housing needs without having to pay tens of millions in the open market."

Yeung said the society has yet to decide on the eligibility criteria for such homes, which do not receive subsidy from public funds.

But there will be no restriction on Hong Kong migrants returning home from overseas.

"Those who decide to return to spend a happier retirement here may, of course, prefer to hire suitable private accommodation and get a domestic helper to look after them," Yeung said.

"But I can assure you that domestic helpers alone will not be able to provide what we can, such as a well set up medical center with professional nursing care workers, nutritionists and more."

He said rents are not that expensive - averaging HK$10,000 a month for a period of 20-25 years.

Joyous Living projects will offer 1,538 homes with demonstration units and price lists open in 2014.

The society will also utilize the refund mechanism of the Senior Citizen Residences Scheme so that those who want to move out halfway through their contract will receive a lump sum refund of between 10-70 percent, Yeung said.

Developers rushing fresh supply to primary market
The Standard
Wednesday, February 15, 2012

At least 56 new homes will be available for sale on Friday at the earliest.

Wheelock & Co (0020) released 51 of 103 flats at Lexington Hill in Sai Wan yesterday. The first batch of 30, sized between 785 and 1,004 square feet, will be priced at about HK$11,039 per square foot.

This is closer to the lower end of the range of HK$11,000-HK$15,000 that the developer hinted at earlier.

The second and third batches - a total of 21 flats - will cost HK$11,688 psf and HK$14,697 psf, respectively. Flat sizes of these two batches also range from 785 to 1,004 sq ft.

Wheelock is targeting HK$1.4 billion to HK$1.5 billion from the sale of all 103 homes.

Neighboring homes are priced at between HK$6,500 and HK$8,600 psf.

Henderson Land (0012) also priced five of its detached houses at La Verte in Fan Ling at an average HK$8,888 per sq ft. That is 11 percent lower than HK$10,000 psf the developer hinted at earlier. The project provides 16 detached houses. Similar houses in the area sell for between HK$4,000 and HK$14,000 psf.

As for the secondary market, buyers are becoming more aggressive.

More than 60 potential buyers lined up to view a flat at Telford Gardens in Kowloon Bay yesterday. The 418-sq-ft flat was sold for HK$2.7 million, or HK$6,459 psf, within an hour of being viewed.

As sentiment improved in the market, shares of sector heavyweights surged.

Cheung Kong (Holdings) (0001) gained 3.31 percent to HK$109.10, while Sun Hung Kai Properties (0016) rose 3.55 percent to HK$113.8. Henderson Land was also up 6 percent to HK$45.4. In other action, the Urban Renewal Authority said it plans to make acquisition offers to the 108 properties that will be affected by the redevelopment projects at Pak Tai Street and San Shan Road in To Kwa Wan.

The owners or occupiers will be offered HK$8,939 psf for saleable area. They will have 60 days to decide whether to accept the offer.

Closed area starts to shrink in size
The Standard
Wednesday, February 15, 2012

The restricted zone separating Hong Kong from the mainland will be reduced from today - allowing the public to enter certain boundary locations without a closed area permit.

The move, which opens 740 hectares of land in Sha Tau Kok and Lok Ma Chau to the public, is the first of three stages that cuts the Frontier Closed Area, or FCA, from 2,800 hectares to 400 hectares.

Deputy Secretary for Security Carol Yip Man-kuen said Shek Chung Au checkpoint in Sha Tau Kok will close for good and a new Gate One checkpoint in the area starts operating today.

Construction of new patrol roads from Mai Po to the Lok Ma Chau control point section, and Lin Ma Hang to Sha Tau Kok section, is completed.

Work on the second section involves erecting a secondary boundary fence from the entrance of Sha Tau Kok town, where the Gate One checkpoint is located, to the Sha Tau Kok control point, a distance of about 500 meters.

"The reduced FCA now comprises a narrow strip of land covering the realigned boundary patrol road and areas to its north, together with crossing points along the boundary, that is the boundary control points and Sha Tau Kok town," Yip said.

"Upon reduction, about 3,300 local residents in eight villages and workers in the areas concerned will have more access. Outsiders do not have to apply for a closed area permit to enter or leave the areas to be released from the FCA."

Chung Ying Street and Sha Tau Kok town are still under FCA restrictions to combat illegal immigration and other cross-boundary criminal activities.

Kenneth Chan Kwok-wah, divisional commander (Sha Tau Kok) of the Customs and Excise Department, said: "The operation of the Gate One checkpoint in Sha Tau Kok will remain the same as Shek Chung Au checkpoint.

"The facilities for the new checkpoint will also include a minor building structure and a covered vehicle inspection area spanning road for the inspection of vehicles."

First stage of reduction of Frontier Closed Area implemented
Wednesday, February 15, 2012
Government Press Release

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The Under Secretary for Security, Mr Lai Tung-kwok, officiated at a ceremony at the Shek Chung Au Check Point at midnight yesterday (February 14), signifying that a total of more than 740 hectares of land was excised from the Frontier Closed Area (FCA) for public use in the first stage of the reduction of the FCA.

The Shek Chung Au Check Point operated by the Police and the Customs and Excise Department was closed officially right after the ceremony while the Sha Tau Kok Check Point started to operate simultaneously.

The Security Bureau announced in January 2008 that the coverage of the FCA would be substantially reduced from about 2,800 hectares to about 400 hectares. In order to implement the reduced coverage of the FCA while maintaining the integrity of the boundary, the Government needs to construct a secondary boundary fence along the boundary patrol road.

The construction works have been divided into four sections, namely the "Mai Po to Lok Ma Chau Control Point Section", the "Lok Ma Chau Control Point to Ng Tung River Section", the "Ng Tung River to Lin Ma Hang Section" and the "Lin Ma Hang to Sha Tau Kok Section". The Government implements the reduction of the FCA by amending the Frontier Closed Area Order in stages to tie in with the completion of the construction works for the four sections. The "Mai Po to Lok Ma Chau Control Point Section" and the "Lin Ma Hang to Sha Tau Kok Section" are covered in this first stage reduction.

The construction works for the "Lok Ma Chau Control Point to Ng Tung River Section" are expected to be completed by the fourth quarter of 2012. The Government aims to further reduce the FCA by introducing another amendment to the Frontier Closed Area Order in early 2013. As for the "Ng Tung River to Lin Ma Hang Section", the construction works will start in the first quarter of 2012 and are expected to be completed by the first quarter of 2015.

Callers raise roof over flats for rich
The Standard
Thursday, February 09, 2012

Housing Society chairman Yeung Ka-sing has defended a luxury homes plan for the elderly against criticism it is a waste of public funds.

The "Joyous Living" scheme, involving a total of 1,538 homes, is based around two projects at Tanner Hill in North Point and Wetland Park Road in Tin Shui Wai.

Units will be between 500 and 1,000 square foot in size.

Affluent senior citizens will have to pay a lump sum upfront to live at the developments.

Callers to an RTHK phone-in show slammed the scheme.

"If I pay more than HK$100,000 each year to rent a residential unit in the new projects, I don't see any difference from paying for a nursing home, which even provides food and domestic services for 24 hours, seven days a week," one caller said.

Another said: "The Housing Society receives subsidies from public funds. If I'm so rich, why would I prefer to rent an apartment managed by the society?"

Yeung told RTHK that the scheme would not receive a subsidy from public funds, and would be self- financed.

He added that rents are essentially set according to construction and operational costs, instead of rises or falls in the property market.

Yeung said yesterday he does not expect to see profits from the scheme, and will be happy if costs are covered.

"The Joyous Living projects are tailor-made to meet the special needs of affluent senior citizens, instead of all of the seven million Hongkongers," he said.

"The society is simply offering one more housing solution to those with greater affordability.

"The public shouldn't be confused about the concept."

For empty residential units, the Housing Society would in future adjust the price range according to the inflation rate.

Looks like both the Shanghai Commercial Bank and CNAC Buildings on Queen's Road Central are being demolished. They're steps away from the Landmark.

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Looks like both the Shanghai Commercial Bank and CNAC Buildings on Queen's Road Central are being demolished. They're steps away from the Landmark.

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Is there a proposal out there for what they are replacing this with? Think this is the first I have heard of this building going down.

There is so much activity in Central at the minute. It's really exciting!

Is there a proposal out there for what they are replacing this with? Think this is the first I have heard of this building going down.

There is so much activity in Central at the minute. It's really exciting!

I have no idea what the replacement will be yet. I was a bit surprised the two were being demolished as well.

Root of all evil lies in bad planning
The Standard
Monday, February 20, 2012

Illegal construction has become a heated topic, from extension structures in the New Territories, to top Hong Kong officials building additions to their homes.

The recent controversy illustrates the notion of inequality and unfairness in modern society.

It is common knowledge that space in the SAR is limited and scarce, so land is more valuable than gold.

Therefore, Hongkongers - given their urge to maximize all commercial value - tend to cross the line and build more than the allowable area.

Every piece of land is associated with a preset potential for development, meaning the size of the site, amount of area that is allowed to be built on it, height limit, and so on, are all determined by the government's planning department.

There are certain cases in which these parameters may be changed - if the appropriate proposal and documentation have been approved, along with a fee.

The value of a site hinges heavily on the amount of area the owner can build on it, and that will determine the return estimation. If the land is sold at a well-traded price range with the potential development of the site known, this will bring about the most efficient and fair price.

But if an owner decides to violate regulations after purchasing the property by creating additional space, this will dramatically increase the allowable finished area on the site, leading to an unfair condition among most of the public.

Hong Kong is very different from the rest of the world. Unlike in the West, where open space is more abundant, the need to exploit every last square inch of developable area is minimal, since there is incentive for people to live in the suburbs with a convenient transportation network.

But here, where transportation may be extremely poor once you get into the rural districts, there is a strong urgency for planners to create more density within the urban areas.

The only logical remedy starts with planning. The urban planning here has always failed to keep up with the city's rapid growth, lacking flexibility or adaptability.

The problem with illegal construction stems not only from regulations, the root of all evil lies with the poor urban planning dating back more than 30 years.

It is high time for us to realize that what we are seeing now is only the tip of the iceberg - a ticking time bomb waiting to explode - with a housing shortage looming in the face of population growth among expatriates and Hong Kong-born mainlanders. Architect Nicholas Ho and art historian Stephanie Poon don't always see eye to eye.

Developers bank on low-density home schemes
The Standard
Thursday, February 23, 2012

Sun Hung Kai Properties (0016) plans to put to market two low-density projects next week.

The sixth phase of Park Island Oceancrest, also called AnaCapri, will offer luxury flats sized between 1,200 and 2,000 square feet.

A unit at the 65-unit project will cost HK$10,000 psf on average, putting AnaCapri on course to generating HK$1 billion in sales.

Also being released is another four-unit detached house project in Tuen Mun. The houses are sized between 3,700 and 4,500 sq ft each, and will cost an average of HK$20,000 psf, putting SHKP on course for another HK$400 million.

SHKP also plans to start selling, from late next month, flats atop the Tuen Mun MTR station - which are now awaiting presale consent.

Sun Hung Kai Real Estate Agency executive director Victor Lui Ting said property prices are likely to see moderate rises this year. "Surging household incomes and low mortgage rates are fueling demand and support prices this year," he said.

Paliburg Holdings (0617) director Donald Fan Tung also said there are favorable factors.

"The poor sentiment seen last year was due to the European sovereign debt crisis. But now I wouldn't worry even if the crisis cannot be settled, as the market is supported by the influx of buyers from the mainland and low interest rates."

Paliburg said it plans to buy more land this year, including the 32,830 sq ft Ap Lei Chau site, which may fetch between HK$1.15 billion and HK$2.7 billion, or HK$5,000 to HK$12,000 per buildable sq ft. About 200 to 300 units could be built on the site, the tender for which closes on March 16.

The developer also plans to launch two hotels in Sheung Wan, one hotel in Tin Hau, and a residential project in Yuen Long.

Meanwhile, two low-density residential sites are to be sold through public tender.

A 45,747-sq-ft site near Repulse Bay, with a gross floor area of 41,172 sq ft, is likely to fetch between HK$11.65 billion and HK$18.9 billion.

The other - a 97,091-sq-ft site in Siu Lam, Tuen Mun with a GFA of 38,836 sq ft - is expected to cost between HK$117 million and HK$194 million.

Proposed institutional changes to upgrade the construction industry
Friday, February 24, 2012
Government Press Release

The proposed amalgamation of the Construction Industry Council (CIC) and the Construction Workers Registration Authority (CWRA) will enhance the institutional arrangements related to the construction industry in Hong Kong. This will be another milestone in strengthening Hong Kong's construction industry further, after the amalgamation of the CIC and the then Construction Industry Training Authority in 2008.

The Construction Industry Legislation (Miscellaneous Amendments) Bill 2012, which proposed the amalgamation and other measures to further streamline the CIC's institutional operation to ensure the healthy and sustainable development of the construction industry as a whole, was gazetted today (February 24).

A spokesman for the Development Bureau said that in its report "Construct for Excellence", published in January 2001, the Construction Industry Review Committee (CIRC) recommended the establishment of an industry co-ordinating body to provide a focus for the construction industry's reform efforts and to foster better co-ordination within the industry. The CIRC also supported in principle the implementation of a worker registration scheme through legislative means. When the CIC Bill was introduced into the Legislative Council (LegCo) in February 2004, it was the policy intent for the CIC to ultimately undertake both training and registration of construction workers.

The CWRA was established in September 2004 and commenced the registration of construction workers in December 2005. The CIC was established in February 2007 and amalgamated with the former Construction Industry Training Authority in January 2008 to take over the training functions and powers discharged by the latter.

"To meet the legislative intent for the establishment of the CIC, there is a present and pressing need to amalgamate the CIC and the CWRA to achieve synergy and support the Government's massive infrastructure programme at the earliest opportunity.

"After due consultation with the LegCo Panel on Development, trade associations and labour unions of the construction industry on the proposed amalgamation and amendments to the Construction Industry Council Ordinance (CICO) and the Construction Workers Registration Ordinance (CWRO), we have drawn up the proposals which are now contained in the Bill," the spokesman said.

The Bill also includes an amendment to the CICO to provide flexibility for the Council to finance educational, publicity, research or other programmes relating to occupational safety and health, environmental protection or sustainable development in the construction industry.

The Bill seeks to introduce amendments to the CWRO to extend the period for the renewal of worker registration from three months to six months and to allow extension of the period for provisional registration under circumstances beyond the control of the workers concerned to assist workers in the registration process.

A new provision is included in the CWRO to pave the way for the workers registration card issued under the CWRO to store and display information of other construction-related cards/certificates in order to reduce the number of cards that a worker needs to carry while at work.

The Secretary for Development will introduce the Bill into the LegCo on February 29. The LegCo Brief on the Bill is available at the Development Bureau's website:
www.devb.gov.hk/en/legco_matters/legislative_council_papers/index.html.

New home prices raised after sentiment improves
The Standard
Monday, February 27, 2012

Some developers are raising the prices of new homes as buyer sentiment continues to improve.

China Overseas Land and Investment (0688) sold 41 flats at The Green in Fan Ling over the weekend.

The developer has released another batch of 14 flats sized between 2,720 and 2,912 square feet, priced at an average of HK$11,520 psf. These will be available for sale on Wednesday.

The average per square foot price of this batch of flats is 3.6 percent less than those in the previous batch at HK$11,945 psf. But this is still 37 percent higher than prices in the first batch of 75 flats at HK$8,411 psf. In all, 75 units will be on the market in the next few days.

According to agents, 20 flats had been reserved at the weekend. The Green offers 254 detached houses ranging in size from 2,032 to 4,025 sq ft.

Also, Cheung Kong (Holdings) (0001) sold 40 flats at Festival City stage three in Tai Wai. The developer said earlier that it will withdraw the remaining flats from the market for three weeks, as it prepares for the launch of the next batch.

Meanwhile, sales in the secondary home market - both mass-market and luxury segments - continued apace with transactions for the former reaching a one-year high.

Centaline said it recorded 76 sales in the 10 major housing estates at the weekend, up from 70 a week ago. In City One in Sha Tin, 12 flats changed hands, or twice the number sold a week ago.

Louis Chan Wing-kit, Centaline's chief executive for residential sales, said confidence has been boosted by market sentiment.

In addition, two detached houses at Residence Bel-Air in Cyberport were sold for more than HK$150 million each. A 6,000-sq-ft house was sold for HK$158 million, or HK$26,333 psf, while another 5,232-sq-ft house fetched HK$170 million, or HK$32,492 psf.

Some homeowners, too, are asking higher prices.

In Discovery Park in Tsuen Wan, a 610-sq-ft two-bedroom flat was sold after the homeowner raised the price by HK$30,000, according to agents. The homeowner sold the flat for HK$3.58 million, representing HK$5,869 psf.

To Kwa Wan flat owners get the option to swap
The Standard
Tuesday, February 28, 2012

The Urban Renewal Authority has introduced a flat-swap program for a redevelopment project in To Kwa Wan under the new Urban Renewal Strategy.

Flat owners of the Pak Tai Street/Sun San Road redevelopment project who live in the homes now have an option to swap for a flat in the redeveloped project at the original site, or a new project in the Kai Tak area.

The choices are in addition to the usual cash compensation announced earlier this month of HK$8,939 per square foot of saleable area.

Managing director Quinn Law Yee- kwan said this will give affected families more choices.

The Kai Tak project, to be completed in 2016-2017, will consist of 323 sq ft to 692 sq ft flats. It will be a "no- extragavance" design such as a hotel- style lobby, executive director Iris Tam Siu-ying said, with 30 percent of the site area to be green-covered.

The Urban Renewal Authority has reserved 99 units for the 40-odd flat owners to choose from - 49 units in the original project and 50 units in the Kai Tak project.

The owners have been given 60 days to consider the offer starting from yesterday.

The 50 Kai Tak homes will be priced between HK$9,045 and HK$10,358 psf on a saleable area basis.

But Law said because the Kai Tak flats will be in general slightly smaller than the old flats, two thirds of the 99 flats cost less than the compensation, meaning most do not need to pay extra for a new home.

Meanwhile, a consortium consisting of Chevalier International Holdings and Golden Code Development has outbid nine others for the authority's redevelopment at Chi Kiang Street/Ha Heung Road in To Kwa Wan.

The project site is about 930 square meters and upon completion is expected to deliver a total gross floor area of about 8,380 square meters for an estimated total of 116 residential units, together with the provision of commercial space of about 1,400 square meters.

Half of the flats are to be about 500 sq ft, the authority said. The market has estimated that the land is worth between HK$450 million and HK$550 million, but the authority would not disclose the financial terms of the contract.

Separately, Secretary for Development Carrie Lam Cheng Yuet-ngor said the authority will carry out a pilot scheme to redevelop industrial buildings.

She said the government will make a contribution to the authority if there are additional resources and staffing involved in the new scheme.

At a low point
The Standard
Thursday, February 23, 2012

Residential transactions may have rebounded in recent weeks, but the morale of property agents is at a low ebb. Displeasure has bubbled over on occasion and last week agents even agitated against their employer.

Agents are also facing new challenges in the form of proposed legislation that aims to regulate primary market sales. The adoption of "saleable area" in secondhand sales and leases is also being discussed.

In the meantime, two bribery convictions came to light, though the offenses were committed a couple of years ago. The offenders were charged by the Independent Commission Against Corruption.

In two separate cases, one agent was found to have pocketed an extra HK$10,000 from a client without his agency's permission, while the other solicited a HK$2,000 commission from a subordinate. Both were found guilty and got jail terms.

"Everybody became desperate for some extra cash, which makes sense in a sluggish market," said an agent who declined to be named. "During good times when everyone is earning big, HK$2,000 is too little for us to care about. Even if we were asked for cash, we would just pay to get it over with."

The agent added that it is the juniors who will normally be tempted because they do not get the chance to handle many transactions.

"But with the current poor market sentiment, it's likely that some third parties were jealous of the person getting the illegal extra cash, and so reported the incidents to the ICAC."

Occasionally, property developers also offer higher commissions to agents as an incentive to sell new homes. But many hands stretch out to grab those incentives.

A senior agent at a small property agency said such commissions attract those selling secondary homes into the fray.

"How many of us can actually get the higher commission? Not to mention the split with the agency," the agent said. "Even when transactions are improving as they are now, the larger firms grab them all. Barely anything is left for us."

Compared with the usual commissions of 2 to 2.5 percent, developers of some new projects have offered commissions of up to 5 percent.

For a secondary home deal, agencies get a commission equivalent to 2 percent of the property's price. This means 1 percent from the buyer and 1percent from the seller.

When more than one agency is involved in a deal, the commission is usually split.

As the market goes into slow growth mode, few people are entering the industry.

In the February round of qualifying examinations, the number of registered candidates fell 45 percent from a year ago, according to the Estate Agents Authority. At the peak, 4,887 registered for the exam in August last year.

Those in the business are not entirely efficient either. The authority has reported receiving 590 complaints against agents last year, down 5 percent from 2010. The industry body revoked nine licenses last year.

Meanwhile, about 100 property agents of Midland Realty - angered by suggestions that extra commissions were being cut - took their grievance to the boss.

Last Thursday they gathered on the 25th floor of World-Wide House in Central, asking to meet with chairman Freddie Wong Kin-yip.

Later that day, the firm issued a press release saying that it settled a dispute, while also denying that it was about extra commissions.

The protest lasted three to four hours. But it was a rare agitation in the history of Hong Kong real estate agents.

49 King Yip Street, Kwun Tong
Website : http://www.49kingyipst.com.hk

Rendering

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SEN to attend launch ceremony for construction of HK gas pipeline in Beijing
Government Press Release
Friday, March 2, 2012

The Secretary for the Environment, Mr Edward Yau, departed for Beijing this morning (March 2) to attend the launch ceremony for the construction of the Hong Kong branch line of the Second West-East Natural Gas Pipeline. Mr Yau was invited by the National Energy Administration.

The ceremony, organised by the National Development and Reform Commission (NDRC), the National Energy Administration and the China National Petroleum Corporation (CNPC), will be held at the China National Convention Centre this afternoon.

Also present will be the Administrator of the National Energy Administration, Mr Liu Tienan, senior officials of NDRC, Guangdong and Shenzhen, as well as CNPC representatives. Mr Yau and senior officials of the Mainland will address the ceremony.

The Central Government earlier announced that construction work on the Second Pipeline of the West-East Gas Transmission Project will be accelerated with the aim of bringing forward the supply of natural gas to Hong Kong to the second half of 2012.

Mr Yau will return to Hong Kong tomorrow (March 3).

Opening remarks by STH on transport issues at LegCo Finance Committee Special Meeting
Tuesday, March 6, 2012
Government Press Release

Following is the English translation of the opening remarks by the Secretary for Transport and Housing, Ms Eva Cheng, on transport issues at the Finance Committee Special Meeting of the Legislative Council today (March 6):

Honourable Chairperson,

Today, I would like to brief Members on the part of the Estimates and our priority areas under the transport portfolio in the new financial year.

The allocation for the transport portfolio in the new financial year is $35.5 billion, which includes the estimated expenditure of a number of cross-boundary and domestic transport infrastructure projects.

Firstly, let me report the latest update of the major transport infrastructure projects. We commenced the construction works of the West Island Line, the South Island Line (East), the Kwun Tong Line Extension and the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, and expect them to be completed accordingly in 2014 and 2015.

On the other hand, the detailed planning and design of Shatin to Central Link is almost completed, and the necessary statutory procedures are now at the final stage. We will strive to apply for funding approval within this legislative session, with a view to commencing construction this year.

As regards another cross-boundary transport infrastructure project the Hong Kong-Zhuhai-Macao Bridge (HZMB), works in respect of the Main Bridge, Immersed Tube Tunnel and the Artificial Islands commenced and have been progressing well. These works are expected to complete in 2016. For the local projects of the HZMB, the Finance Committee approved the funding for the related works last year, and the reclamation works for the Hong Kong Boundary Crossing Facilities commenced immediately in late 2011. The tendering work for the Hong Kong Link Road is still ongoing. The local projects have been affected for about one year because of a judicial review case; we are now compressing the works programme and are confident that the various local works can be completed to dovetail with the target of commissioning the HZMB Main Bridge in 2016.

Further, we are also pressing ahead with our local road infrastructure projects, including Stage 1 of the Tolo Highway and Fanling Highway widening works, the Central-Wan Chai Bypass and Island Eastern Corridor Link and the widening of Tuen Mun Road. We are also pushing ahead with the planning and design of a number of projects including the Tuen Mun-Chek Lap Kok Link, the Tuen Mun Western Bypass, the Central Kowloon Route, the Tseung Kwan O-Lam Tin Tunnel and Stage 2 of the Tolo Highway and Fanling Highway widening works.

At the same time, we secured funding approval from the Legislative Council for taking forward the design of the barrier-free access facilities retrofitting works at about 180 existing footbridges, elevated walkways and subways and the phase 1 retrofitting of barrier-free access facilities. The first phase of the retrofitting works has commenced. We plan to apply funding approval for Phase 2 retrofitting works this year, and hope to complete the bulk of the retrofitting works by 2016-17.

On civil aviation, we will strengthen Hong Kong's position as an international and regional aviation centre. We will continue to proactively pursue expansion in the bilateral air services arrangements. Regarding the proposals arising from the review of the Air Transport Licensing Authority's regulatory regime, the relevant legislative amendments have been passed by the Legislative Council and will be implemented this year. In terms of hardware, the Airport Authority Hong Kong (AAHK) will continue to implement a midfield expansion project to increase the handling capacity with air traffic demand up to 2020. For the long-term development of the airport, AAHK launched a public consultation in mid-2011 on the Hong Kong International Airport Master Plan 2030. AAHK recommended to the Government at the end of 2011 that the three-runway system should be adopted as the blueprint for development. The Government is carefully considering AAHK's recommendation with a view to making an early decision for the commencement of the next stage of work, which includes the environmental impact assessment, the associated detailed design and the financing arrangements.

On maritime and logistics development, we will continue to assist the industry to take advantage of opportunities arising from vibrant shipping and logistics development in Asia, as well as the positioning of Hong Kong as set out in the National 12th Five-Year Plan. For example, we will reinforce the local maritime cluster by supporting manpower development and undertaking promotional activities. In terms of hardware, both the preliminary feasibility study of developing Container Terminal 10 (CT10) at southwest Tsing Yi and the Study on the Strategic Development Plan for Hong Kong Port 2030 are under way and are expected to be completed by the end of the year. We will carefully consider the study results, the global and local economic situation, the performance of the port sector, and the views of stakeholders to decide on the need for CT10 development. Separately, we are proceeding with the dredging of the Kwai Tsing container basin and its approach channel to enable the new generation of ultra-large container ships to visit Hong Kong Port.

On the logistics front, Hong Kong has the advantages for development into a high value goods inventory management and regional distribution centre. To support the industry, we have already made available two logistics sites for the industry to construct modern logistics facilities. We will continue to identify suitable land for logistics and port backup uses for meeting development needs. Separately, we shall continue to work with the industry to promote e-logistics, as well as to implement measures which would help enhance the operating efficiency of the sector.

On road safety, we will continue to enhance road safety through legislation and enforcement, as well as publicity and education. Last year we introduced legislative amendment proposals to combat drug driving. The new legislation will be enacted for implementation in mid-March.

We have also introduced legislative amendments to the Road Traffic Ordinance to deter speeding behaviour among public light bus drivers and to enhance the safety of public light bus operation. The proposed measures include imposing a maximum speed limit for light buses, mandating that all light buses install speed limiters, and requiring applicants for public light bus driving licences to attend a mandatory pre-service training course.

As to the measures of traffic management, cross-boundary transport and the long-term railway development study, I do not intend to go into details here.

My colleagues and I would be pleased to answer questions from Members. Thank you, Chairperson.

敬業街寫字樓貴絕東九龍
2012年03月06日(二)
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Brief Synopsis : Sun Hung Kai Properties has sold the 33/F of their 49 King Yip Street commercial development for 50 million HKD, or about 10,000 HKD per square foot. This is a new high for Kowloon East, exceeding the price of Grade A offices in Tsim Sha Tsui East.

The floor has a floor area of 4974 square feet and was sold for $49.74 million HKD.

起動九龍東效應下，買家都願以進取價購入區內商廈特色單位，新地的觀塘敬業街49號商廈樓花項目，其中33樓頂層行政樓層，剛以近半億元售出，呎價達1萬元，創東九龍新高外，亦媲美尖東康宏廣場目前做價水平。

上述敬業街49號33樓全層，中原（工商舖）麥偉嫦稱，面積4,974方呎，連一個面積1,103方呎平台，獲實業家以4,974萬元購入，呎價1萬元。據悉，上址呎價超尖東好時中心及港晶中心等甲級商廈。

傳彌敦道商廈售5.5億

另據土地註冊處資料，尖東東海商業中心地下G16號舖及地庫一籃子物業以1.0486億元售，買家為YEUNG WAI。另灣仔譚臣道93至103號地下部分及有關樓面以6,880萬元易手。市傳旺角彌敦道單號數一幢銀座式商廈以約5.5億元售；市傳投資者黎永滔的灣仔「皇后100」全幢服務式住宅，獲買家以3億元洽購。

另銅鑼灣堅拿道東一組舖位獲出價共約1.8億元洽購。此外，有投資者擬以6,000萬元，洽購中環畢打街一個現由找換店租用地舖。

High call in Causeway Bay
The Standard
Thursday, March 08, 2012

Several leading developers are eyeing a large commercial site in Causeway Bay.

Phoenix Property Investors plans to sell its wholly owned President Shopping Centre and the Central Mansion above it on Jaffe Road. The tender for the sale closes tomorrow.

Chinese Estates Holdings (0127), KWah International (0173), Emperor International (0163) and Wheelock (0020) have indicated they could be among bidders.

Sun Hung Kai Properties (0016), owner of the nearby World Trade Centre, is also believed to be interested.

A market insider said one bid already submitted was for HK$5 billion, or more than HK$20,000 per buildable square foot, and a 31-story commercial building with a gross floor area of 228,000 sq ft was a good bet for the site.

But another market source said the seller was seeking at least HK$6 billion, which would be equivalent to HK$26,316 per buildable sq ft.

And Vincent Cheung Kiu-cho, the director for valuation at Cushman & Wakefield, said the successful buyer would need to come to terms with height restrictions in the district, which would rule out a 31-story tower.

It was in 2010 that the Town Planning Board put a 110-meter cap on the height of buildings in Causeway Bay - a restriction that met immediately with objections from developers.

As matters stand, Cheung said, a building on the site would have "at most 27-28 stories, assuming around four meters per floor." He also said the construction cost would be "about HK$912 million, or HK$4,000 per square foot."

Average monthly rentals of shops in a mall that could feature in a new development would amount to HK$400 psf, though some ground-floor sites could go for more than HK$1,000 psf a month.

Eric Lau Man-ho, leasing manager at Sun Hung Kai Property Agency, said in January that rents at the WTC Mall ranged from HK$255 to HK$300 psf.

Retails shops are presently on the two bottom floors of the President Shopping Centre, while the 11 floors above is Central Mansion.

The block beside the World Trade Centre Mall, the WTC office tower and the Excelsior Hotel was built in 1964.

Tenant forces delay at illegal industrial units
The Standard
Thursday, March 08, 2012

A Buildings Department bid for court permission to demolish illegal subdivided flats at an industrial building in Tai Kok Tsui has been put off until next week.

The District Court adjournment came after principal tenant Kan San-pui filed an objection saying he needs more time.

Judge Stephen Chow Siu-hung will hear the case again on Monday to decide whether the court order should be issued.

Kan told the court that since the warning letter from the department does not clearly state the details of the demolition, he has the right to oppose its application.

The furniture-store owner said he rents the fourth and fifth floors, as well as the rooftop, for storage.

This is the first action by the government against illegally partitioned flats amid growing public safety concerns.

A chronically ill tenant named Ng is the last person to still remain in the partitioned cubicles at the industrial building on 78 and 78A Larch Street - as he has failed so far to find alternative housing.

The government has arranged for him to stay three months at the Tuen Mun Temporary Accommodation Centre before he can move into interim housing.

"I feel secure that a shelter has been arranged for me for three months." Ng said. "My worries have been temporarily eased."

Ng also said it would be irresponsible of the government to not offer alternative accommodation to affected tenants.

The past two months saw social workers from the department and nongovernmental organizations help tenants apply for government subsidies and find alternative housing. Most of the elderly households in the building moved out weeks ago.

The department said the court action is a public-interest move over land use, and reassured affected tenants they will be taken care of and not left homeless.

At a special meeting of the Legislative Council Finance Committee, Secretary for Development Carrie Lam Cheng Yuet- ngor said the building's landlord is dead and it would be difficult to initiate prosecution without clarifying the ownership issue.

A department order in September told the owner to stop renting out the industrial building for residential use.

'Grossly unfair'
The Standard
Wednesday, March 14, 2012

Property developers are crying foul after the Executive Council yesterday approved new regulations to govern home sales.

The Residential Properties (First- hand Sales) Bill, which faced strong objections from developers, will be presented to the Legislative Council for approval next week.

It proposes to make developers quote prices of flats based on saleable, rather than gross, area - with big fines and lengthy jail terms for those who fail to comply.

The maximum penalty for breaching the regulation will be a HK$5 million fine and up to seven years' imprisonment.

The Real Estate Developers Association had earlier urged the government to also include gross floor area - for which there is no uniform definition - in sales documents.

REDA executive committee chairman Stewart Leung Chi-kin said the new regulation is unacceptable.

"Real estate agents are allowed to quote their prices of secondary homes in GFA, with which the average price per square foot would be lower.

"But developers are not allowed to give our prices in GFA. Is that fair?"

The first reading of the bill in Legco will be next Wednesday.

Under the regulation, saleable area will be adopted as the sole measurement in quoting the size of a property and the price per square foot in sales brochures, price lists and advertisements.

But property developers want gross floor area to be included in sales materials.

Following Exco's approval, Secretary for Transport and Housing Eva Cheng Yu-wah said: "Having a unified definition to calculate the area of a unit is the basis for the legislation.

"Some suggested including the gross floor area as a reference. But it is ridiculous to have some parts of the price list as references, while the real information is stated already."

Centaline managing director Louis Chan Wing-kit welcomed the new measures.

He said agencies will have to be more cautious with small details, but in the long run "buyers' confidence and transactions will be boosted as the penalties are now more harsh than many places in the world."

Lawrence Poon Wing-cheung, a specialist in real estate development at City University of Hong Kong said: "Secondary homeowners will have no option but to adapt by giving saleable area."

Cheng said the proposed legislation also requires developers to disclose the distance between the lowest residential floor and the street next to it.

This was brought in following a complaint from the buyer of a flat at Oceanaire in Ma On Shan built by Cheung Kong Holdings (0001).

The flat, said to be on the podium floor, was actually at ground level.

It was presold for HK$7 million after the sales brochure had claimed it was below "the fifth floor."

Two sites to be sold through public tender in May could fetch between HK$1.33 billion and HK$1.38 billion.

A 46,845-square-foot site in Tseung Kwan O area 56A is likely to sell for between HK$979 million and HK$1.03 billion, representing between HK$3,800 and HK$4,000 per buildable sq ft.

It offers a GFA of 257,647 sq ft, which means only 310 to 326 units can be built.

A 50,473-sq-ft plot in Kau To, Sha Tin, could sell for between HK$300 million and HK$403 million, or HK$6,000-HK$8,000 per buildable sq ft. It offers GFA of 50,375 sq ft.

Tenders close on May 18.

Buildings Department takes enforcement action against illegal sub-divided domestic cubicles in industrial buildings
Monday, March 12, 2012
Government Press Release

In order to step up enforcement action against illegal sub-divided domestic cubicles in industrial buildings to protect public safety, the Buildings Department (BD) was granted a closure order, applied for by the BD on March 7, by the District Court today (March 12) to close down certain floors of 78 and 78A Larch Street, Kowloon, in order to facilitate the BD's arrangement to clear the unauthorised building works (UBWs) on the floors concerned by government contractors. After receiving the closure order, the BD closed the floors concerned with the assistance of police officers. The closure operation was carried out smoothly as all the occupants of the subject premises had already moved out on or before March 7. The BD will make arrangements for government contractors to demolish the UBWs on the floors concerned shortly.

"Changing industrial premises to domestic use poses a serious fire risk to the occupants, while the erection of partition walls may render the fire escape route in the premises inadequate. To ensure public safety, the BD needs and is determined to take stringent enforcement action against such irregularities. To this end, the BD will carry out large-scale enforcement action against sub-divided domestic cubicles in 30 industrial buildings each year starting from April 2012. Such enforcement action includes issuing orders to the owners requiring removal of UBWs and/or discontinuing the present domestic use, as well as instigating prosecution actions more readily against owners who contravene the Buildings Ordinance (Cap. 123)," the spokesman stressed.

The building located at 78 and 78A Larch Street was issued with an occupation permit in July 1962. According to the approved building plans, the design and construction of the building was intended for industrial use. However, earlier inspections carried out by BD staff revealed that UBWs had been erected on the podium flat roof and rooftop of the building. The floor space within these UBWs and certain floors of the building had also been partitioned into some 60 sub-divided cubicles used for domestic purposes. As the owner failed to comply with the statutory orders served by the BD in April 2009, April 2011 and September 2011, the BD decided to apply for a closure order from the court to close down the floors concerned and to arrange for its contractors to demolish the UBWs so as to protect the safety of the occupants and the public. The BD will also recover from the owner the cost of the works and the supervision charge.

"In order to allow more time for those affected to relocate, the BD notified the occupants of the arrangements and posted 'notices of intention to apply for closure orders' (NOI) at conspicuous locations at the building on December 29 last year. It has always been the Government's policy to ensure that no one will be rendered homeless due to its enforcement action. As such, over the past two months, the BD has made arrangements in collaboration with the Housing Department, the Social Welfare Department and the Home Affairs Department to offer appropriate financial, rehousing and social assistance to the affected occupants based on their eligibility," the spokesman said.

The spokesman added that the BD has so far granted the relocation allowance of the Community Care Fund to 37 eligible occupants. Social workers from the BD have also assisted the affected occupants in applying for allowances offered by other organisations and seeking alternative accommodation, such as hostels managed by voluntary organisations and domestic units in private buildings. In fact, with the assistance from the BD's social workers, over 60 households from the floors concerned at the building were able to move out smoothly earlier on.

In view of the fact that some vacated cubicles had been reoccupied in early 2012, the BD has already taken a series of measures to remind occupants who have newly moved in, as well as prospective tenants, of the BD's enforcement action. In particular, after the first posting of the NOI on December 29, 2011, the notice was reposted on the floors concerned again by BD staff on February 3 and February 22, 2012. Moreover, social workers from the BD have carried out three day visits and 17 night visits since December 29, 2011, to explain to the occupants the details of the BD's enforcement action.

The spokesman once again reminded owners of industrial buildings not to change their units to domestic use, and warned that owners who contravene the relevant legislation or fail to comply with statutory orders can be prosecuted. Furthermore, for their own safety, occupants of such sub-divided units should move out of the units as soon as possible, while others should refrain from living in industrial buildings. Any person who makes rental arrangements should also enquire about the approved intended use of the unit and avoid renting and living in premises only intended for industrial use. To ascertain the approved intended use of the premises, prospective tenants should pay attention to the name and location of the building, the interior design of the premises and, where necessary, check the occupation permit, approved building plans and other relevant information about a building through the search services of the Land Registry or the BRAVO system of the BD if they are in doubt. To dispel any rumours, the spokesman added that no one displaced by such enforcement actions, including households that have already applied for public rental housing (PRH) via the General Waiting List, would be given an earlier allocation of PRH.

Finally, the spokesman said the BD is extremely grateful to all government departments and voluntary organisations for their efforts, without which the operation could not have been carried out smoothly.

Agents strike it rich in sale
The Standard
Monday, March 19, 2012

Many aging buildings will have a chance of being redeveloped when the government lowers the compulsory sale threshold.

A forced sale may take place if 80percent of the owners agree, making it difficult for the remaining owners to hold out for a higher selling price.

A case in point is the Central Mansion in Causeway Bay, which has been acquired by an investment fund for redevelopment.

Some owners had tried to sell the building by tender, but they did not get the required number of owners to agree.

They avoided compulsory sale and tried another round of persuasion, which fortunately worked.

Located in a prime district, Central Mansion is suitable for commercial redevelopment.

The developer, Phoenix Property Investors, is not one of the biggest players in the field.

Many were amazed at its HK$2 billion acquisition involving more than 300 individual units.

The project was well-executed. Once 90 percent of the owners signed up, the developer submitted plans for redevelopment. It did not wait till it acquired the remaining units, which would have involved a forced sale.

Now the project is proceeding at full speed and likely to be completed in 2014.

Built in 1964 and located at the junction of King Lung Street and Jaffe Road, Central Mansion sits on the President Shopping Centre, which takes up the basement and ground floor.

According to the floor plans, there will be more shops on the future building's lower floors.

Such an urban site is rare and valuable. There are reports that the property is up for sale at HK$6 billion. Such large-scale acquisition is hard to pull off. It takes hard work, good planning and a bit of luck too.

They said the sale of Central Mansion was completed by three agents, each receiving a commission of close to HK$2 million in the end. Their success has become legendary in the property market.

Siu Sai-wo is chief editor of Sing Tao Daily

Government to sell two sites by public tender
Tuesday, March 13, 2012
Government Press Release

The Lands Department announced today (March 13) that two residential sites in the 2012-13 Land Sale Programme will be disposed of by public tender.

The two sites are Sha Tin Town Lot No. 562 in Area 56A, Kau To, Sha Tin, New Territories, and Tseung Kwan O Town Lot No. 114 in Area 66C1, Tseung Kwan O, New Territories. The tender invitation for both lots will commence on April 13 and will close on May 18.

Sha Tin Town Lot No. 562 has a site area of about 4,680 square metres and is designated for private residential purposes. The minimum gross floor area and the maximum gross floor area are 2,808 square metres and 4,680 square metres respectively.

Tseung Kwan O Town Lot No. 114 has a site area of about 4,352 square metres and is designated for non-industrial (excluding godown, hotel and petrol filling station) purposes. The minimum gross floor area and the maximum gross floor area are 14,362 square metres and 23,936 square metres respectively. The total number of residential units to be built shall not be less than 310 and shall not exceed 326.

The final Conditions of Sale for both lots will be available for distribution and uploaded to the Lands Department's website (www.landsd.gov.hk) by April 13, when the particulars of the tender will also be gazetted.

Kwun Tong Recreation Ground
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http://www.globalphotos.org/hongkong/2012/0304/IMG_1774.jpg

Someone give me the money for a ticket to go to Hong Kong :)

Villagers boycott order on homes
The Standard
Monday, April 02, 2012

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All 27 rural committees in the New Territories have reached a consensus not to declare any illegal structures.

This was in defiance of Secretary for Development Carrie Lam Cheng Yuet-ngor, who earlier urged New Territories residents to register their illegal structures.

Wong Wing-sang, a village representative of Fuk Hing Tsuen in Yuen Long, called on residents to ignore the government order.

Cheung Hok-ming, vice chairman of the Heung Yee Kuk, said he would not tell villagers whether they should declare any illegal structures on their properties.

The Buildings Department received the highest number of complaints over illegal structures against Tung Tau Wai and Fuk Hing Tsuen in Yuen Long among the nine villages initially targeted.

Cheung said the kuk threatened to seek a judicial review when villagers received the first demolition order. He urged the government to exempt illegal structures on old houses built without a height limit.

"Some New Territories village houses were built on government leases in the early 1900s in which the height limit was not stipulated," Cheung said.

"We hope that the government will exempt those houses and allow the owners to keep illegal structures that pose no danger to the public."

He said it is up to the villagers to determine if they have illegal structures and if they should register them.

Junius Ho Kwan-yiu, chairman of the Tuen Mun Rural Committee, urged residents to boycott the registration exercise as the govern
ment had taken a "heavy-handed approach." Registering would mean they admit violating the buildings ordinance.

Choi Kin-sun, a representative of Tung Tau Wai, said they wished the government had given them more time to handle the properties in question before issuing demolition orders.

Elderly homeowners will face a heavy financial burden if they are forced to demolish the structures, he said.

The government has offered a building safety loan of up to HK$1 million per house to those who have financial difficulties. Those who pass the means test will receive interest-free aid.

According to government regulations, a village house that exceeds the three-storey standard and has glass enclosures that cover more than half the rooftop are severe breaches that must be cleared immediately.

Lesser breaches will be tolerated for a few years.

By Car L :

Lions Rise 現崇山

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Lions Rise
http://www.lionsrise.com.hk/en/about/

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Address : 8 Muk Lun Street, Wong Tai Sin, Kowloon
No. of Towers : 5
No. of Units : 968 units
No. of Storeys : 31 residential storeys – from 8/F to 42/F
*(there is no designation of 13th, 14th, 24th and 34th floor)
Typical Unit Size : approx. 680s.f. to 1,470s.f.
Typical Unit Layout : 2 bedrooms to 4 bedrooms (ensuite) with store room
Clubhouse Facilities : Ballroom In The Park, 50M Outdoor Pool, Indoor Pool, Kid's Pools, Spa World, Multi-Purpose Sports Hall, Children Playground and Gym Room etc.

Henderson buys Ap Lei Chau site
The Standard
Friday, April 13, 2012

Henderson Land (0012) spent HK$72.70 million acquiring a site in Ap Lei Chau yesterday after a near-three-year tussle gaining the consent of disparate owners.

Henderson plans to spend HK$400 million to develop the 1,980-square-foot site at 70 and 72 Main Street in Ap Lei Chau after buying it under the law on compulsory sale for redevelopment.

With a plot ratio of 8.4 times, the buildable price per square foot amounts to HK$4,371 psf. At present, a six-story, 46-year-old commercial and residential building is on the site.

"It took us two to three years to prepare for the purchase," said Henderson general manager Augustine Wong Ho-ming. "It will be developed together with the neighboring site at 62-68 Main Street in Ap Lei Chau. The project will provide around 60 small and medium-sized flats."

Henderson has also applied to acquire six sites on Ka Shin Street in Tai Kok Tsui.

Meanwhile, Midland Realty (1200) said new flat supply on Hong Kong Island this year will amount to 1,628 units, provided by 20 projects. The agency said secondary market deals dominated the market in the first quarter, while new home transactions fell by nearly 30 percent.

A total of 3,251 secondary homes changed hands in the first three months, up 45 percent from the fourth quarter of 2011. The value of the deals hit HK$22.6 billion, up 40 percent in the same period.

Out and about
The Standard
Thursday, April 12, 2012

Outlying islands have recently again become the stomping ground of a few developers which see great potential in luxury residential developments that leverage nature's gifts.

Several sites on islands including Lantau and Peng Chau have been sold over the past four months and some have fetched prices way below market expectations. Last month, a 49,127-square-foot residential site on Peng Chau was sold to Sino Land (0083) for HK$19 million, or HK$514 per buildable square foot - much lower than estimates of between HK$37 million and HK$150 million.

"The price was quite surprising. There were only two tenders for the site, which reflected weak interest among the developers," said Centaline Surveyors director James Cheung King-tat.

The site provides a gross floor area of 36,800 sq ft. Cheung added that factoring in construction and development costs future projects on the site will sell for between HK$2,000 and HK$2,500 psf. Neighboring properties now sell for between HK$2,300 and HK$3,000 psf.

Another 12,280-sq-ft site on Peng Chau was also triggered for sale earlier this month. The site - with gross floor area of 9,223 sq ft - was triggered for HK$5.5 million, or HK$596 per buildable sq ft. Industry sources said developers would build two- to three- story detached houses.

"Detached houses will provide expansive sea views, which adds a lot to the development potential," said Kenneth Cheung Chor-yin, executive director of Citiland Surveyors. Edward Yiu Chung-yim, assistant professor of the department of real estate and construction at the University of Hong Kong, said developers may be eyeing outlying islands to build luxury residences.

"From 1997, luxury property prices have outperformed the general property market. But since there is not much land supply in the traditional luxury [residential] areas, many developers started to upgrade some other areas into luxury property districts too," Yiu said.

Over the past decade, more luxury homes have cropped up in West Kowloon as well as in Shum Wan in the south of Hong Kong Island.

"Government measures in the past year limited the development of many new sites in urban areas, such as the stipulation of flat size and the number of flats. This prompted developers to look for areas with more developmental flexibility, and hence greater margins. These are some of the advantages that developers saw on outlying islands," he added.

For the Peng Chau site Sino Land bought last month, the price of future flats - HK$2,000 psf - could be at least two times more than the land cost - at HK$514 per buildable sq ft. Such high profit margin would be unlikely in urban projects.

The emergence of large property projects on outlying islands is not of recent origin. HKR International (0480) developed Discovery Bay on Lantau back in the 1970s. The low-density area was later shaped into a project that mainly attracted expatriates. However, there are disadvantages too, such as the distance and time for travel to work locations such as Central and Wan Chai. This has prompted developers also to build transport infrastructure and provide transport services.

Back in 2002, to attract homebuyers to Park Island on Ma Wan, Sun Hung Kai Properties (0016) launched ferries to and from Central, and buses to and from Tseung Wan, Tsing Yi and Kwai Fong.

Another challenge would be the acquisition of sites on islands.

"Most sites on islands, especially Cheung Chau and Lamma, had been passed on to descendants of island natives. There is a lot of legal work involved if developers want to buy sites. The process could take years," Yiu said.

There are four outlying islands sites on the application list.

Building checks to fail on a lack of inspectors
The Standard
Monday, April 16, 2012

The effective date of a mandatory building inspection scheme is likely to be delayed because there is not enough time for flat owners to locate and hire inspectors.

The government had claimed there would be 300 firms listed for flat owners to hire, but up to yesterday only 69 were on the Building Department's website. A main reason for the cold response from companies is the low government subsidies - HK$500 for each window and HK$800 for each flat.

According to a survey of 850 homeowners by political party Kowloon West New Dynamic, 70 percent are unaware that mandatory inspections start in the second quarter of this year.

The department will notify flat owners who need to hire listed companies from this month until June. After receiving a notice, flat owners are supposed to hire companies to make an inspection within six months. "The government should notify owners a year in advance so they have enough time to discuss and oganize matters," said Yau Tsim Mong district councillor Rowena Wong Shu-ming.

She also said it was unreasonable for authorities to start notifying flat owners in the second quarter of this year bearing in mind the Legislative Council had passed the Buildings Legislation (Amendment) Bill 2011 last June.

"There aren't enough details for flat owners, and the elderly have no way to know about the scheme," she added.

The Buildings Department consulted the public in 2003 and 2005 to reach a consensus that flat owners should be responsible for maintenance and repair and shoulder costs.

Owners of buildings that went up more than 30 years ago must carry out inspections and repair common parts, external walls and projections once every decade. And owners of buildings aged 10 years or more are required to carry out inspections and repair work of all windows once every five years.

Li Kim-wah, chairman of the owners' corporation at Kam Kee Building on Ki Lung Street, Sham Shui Po, said many flat owners refuse to share the cost of repairs, and so he worries it might be hard to hire listed companies to do work.

Kowloon West New Dynamic hopes the government can clarify whether the names of flat owners who are willing to shoulder the costs will be published along with those who refuse to pay.

Changes rekindle project hopes
The Standard
Friday, April 13, 2012

The next Hong Kong government is expected to usher in new policies, and one of the obvious areas for change is in land and housing.

Since the colonial days, the territory has been steadfastly adhering to the so-called high land price policy.

Under this concept, land is considered a scarce resource that should only be used sparingly, and vast rural areas are zoned for conservation accordingly.

And those people in related professions who have been advocating policy adjustments have become supporters of the incoming administration by default - for it shares their thinking.

Chief Executive-designate Leung Chun-ying is a surveyor by profession, and many of his backers are from the same field.

One of them is Wan Man-yee, who has been running his own firm for many years after working for the government and large consortiums.

Wan has worked on many cases involving change of land use, and a few of these became frustrating, such as the Nam Sang Wai project proposed by the Fu family.

The site concerned was acquired along with a development blueprint drawn up decades ago, but the project has been blocked by conservation groups as it involves wetland.

In the intervening years, buildings have sprung up in the surrounding area.

But the many development proposals with conservation measures put forward by the land owner have failed to break the stalemate.

To increase housing supply, land in the New Territories would have to be released, and this is bringing new hope in controversial projects.

But wetland conservation is particularly sensitive.

To have a chance of getting the green light, large-scale projects like Nam Sang Wai would first have to allay conservationists' concerns.

Siu Sai-wo is chief editor of Sing Tao Daily

Hang Lung boss eases fears on Leung policies
The Standard
Wednesday, April 18, 2012

Hang Lung Properties (0101) chairman Ronnie Chan Chi-chung thinks the local residential market will remain stable after Chief Executive-designate Leung Chun-ying assumes office on July 1.

"Hong Kong's land policy is very important and determines both the success and the failure of the city. I believe Leung, when he starts his job as chief executive, will release more sites," said Chan, a long-time supporter of Leung. But developers may not be able to make as much money as before, he added.

Meanwhile, realty firm Cushman & Wakefield expects office rents in Central and Admiralty to fall by 5-10 percent this year, while those in Wan Chai and Causeway Bay may dip by 2 percent. The milder decline in the latter two districts - considered to be extensions of the core business district - is due to the vibrant retail sector.

"Landlords have cut rents as leasing activity has slowed due to weaknesses in the global economy and difficulties facing the banking and finance industry," executive director John Siu said.

Landlords have also slashed rents to secure and retain tenants, he added

In the first quarter, overall office rents in the SAR dropped 5.2 percent from the fourth quarter of 2011 to HK$66 per square foot per month.

Prime office rents in Central fell by 13.3 percent to HK$123.30 psf per month, while those in Wan Chai and Causeway Bay were down by 3.3 percent to HK$62.20 psf per month.

Lam lays down law on illegal structures
The Standard
Wednesday, April 18, 2012

Secretary for Development Carrie Lam Cheng Yuet-ngor is adamant there will be no amnesty for unauthorized structures on village houses.

She also stressed that the government will not legalize those structures by receiving a so-called "tolerance fee."

Heung Yee Kuk chairman Lau Wong-fat fears this will give rise to a "war of resistance" and said the government should allow the houses to stay the way they are.

Lam stressed yesterday that she has never considered granting an amnesty.

"If we back down today and say there is no need to enforce the law when there is no legal ground to support an amnesty, this will be a blow to the spirit of the law in Hong Kong," she said.

But the Buildings Department will use its expertise to decide what to do if demolishing upper floors poses a threat to the lower floors, Lam said.

"If the Heung Yee Kuk has persuasive reasons, it can apply for a judicial review. We do not have an issue with that, and we will then let the courts handle it," Lam said.

She also said the government has issued 85,000 letters telling homeowners that they should report illegal structures.

She said it would be unacceptable to leave the issue to the next administration to handle.

Lam also said she received a letter from Chinese People's Political Consultative Conference member Lew Mon-hung yesterday on the issue. Lew has called for an amnesty.

She said it is wrong for Lew to claim that New Territories village homeowners cannot apply for public housing or join the Home Ownership Scheme queue.

She said that all Hong Kong residents can apply for subsidized housing if they meet the criteria.

At a kuk meeting yesterday, Lau made it clear that the houses should be allowed to stay the way they are unless the illegal structures are an immediate danger.

Vice chairman Cheung Hok- ming said the government may have a definition of "unauthorized structures" that is different from the kuk's.

The kuk will assist villagers who wish to file for judicial review, Cheung said.

Leung won't let us down, says property developer
The Standard
Friday, April 20, 2012

A property developer yesterday expressed confidence in the incoming administration amid worries that Hong Kong's new chief executive will boost land supply, dragging home prices lower.

New World Development (0017) executive director Gary Chen Guanzhan said he expects the team of Chief Executive-elect Leung Chun-ying to continue supporting the property market.

"I think the government will learn a lesson from history when it plans new housing policies," Chen said.

"Home prices may be vulnerable to the external environment, but I expect a stable market this year supported by loads of end-users. I don't think he [Leung] will make the market collapse."

New World Development and MTR Corp (0066) plan to put The Riverpark on the market this June - at the latest. It is located at Ma On Shan.

The project has 980 units, most of which measure 670-1,850 sq ft.

They are likely to be priced like other homes in the neighborhood at HK$9,000-HK$12,000 per sq ft. The project is expected to be completed by May next year. It is now awaiting presale approval from the government.

Meanwhile, Secretary for Transport and Housing Eva Cheng Yu-wah said public housing serves a group that is different from the private market.

"The two have their own role and should not contradict each other," Cheng said.

For the rest of its term, the present government will continue to watch out for risk of asset bubbles and ensure the healthy development of the property market, she said.

Midland Realty executive director Vincent Chan Kwan-hing said he expects the property market to remain stable. He is not worried that Leung's policies will affect the livelihood of property agents. "The meal may not be as good as before but it is still good."

CLP gets $400m super-typhoon armor
The Standard
Friday, April 20, 2012

Nearly HK$400 million will be spent on protecting power grids against the rising threat of super typhoons that pack wind speeds of over 185 kilometers an hour.

Plans are to plow up to HK$390 million into a three-year project to strengthen physical and technological infrastructure including transmission towers, substations, power poles and intelligent switches, CLP Power said.

The large-scale initiative will help ensure power supply even during violent storms and improve public safety by lowering the odds of accidents caused by falling lines and poles.

"The measures are designed to boost the capability of our grid system from an increasing trend of severe storms with strong winds, in order to give our customers a reliable power supply and ensure public safety," power systems director Chow Tang-fai said.

The project will specifically address super typhoons with central wind speeds above 185 kph.

Powerful cyclones like the deadly Typhoon Megi, which struck the Philippines in 2010, could easily knock down transmission towers, he said.

Hong Kong Observatory senior scientific officer Mok Hing-yin said super typhoons will likely become more frequent as global warming intensifies.

Five super typhoons have struck the SAR since 1950, accounting for 10 percent of the total.

CLP noted that Typhoon Wanda in 1962 disrupted power supplies, affecting thousands, while two towers in Tuen Mun were damaged by Typhoon Ellen in 1983. Both were Signal 10 storms.

Most of the cash will go into improving the wind resistance of 151 transmission towers, from the current 240 kph to 300 kph, at HK$1 million per tower.

Work will also be carried out on 74 slopes to prevent landslides from toppling towers. Tree and bush planting and insertion of steel pillars will cost another HK$200 million to HK$250 million.

Also on the cards is an emergency control team to carry out immediate repair work on broken poles and overhanging power lines amid a typhoon strike.

However, the added safeguards will likely cost consumers, as CLP said the expensive operation might lead to a "marginal increase" in charges.

This thread would be 100x better with renderings...

Grand Metro near Prince Edward MTR has just been completed (green building)
Website : http://www.grandmetro.com.hk/

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- 123 Prince Edward Road West
- 30 storeys (goes up to 39/F)
- residences start on 5/F, skipping 13,14,24,34/F
- refuge floor on 17/F
- 60 residential units

A new construction next to APM in Kwun Tong (3/4) :

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Repulse Bay plot fails to meet hype
The Standard
Thursday, May 03, 2012

A Repulse Bay residential site belied forecasts of a new SAR record for price per buildable square foot, settling for the lower end of market estimates instead.

The 46,700-square-foot plot near 110 Repulse Bay Road was sold for HK$1.67 billion, or HK$39,672 per buildable sq ft.

That is at the lower end of estimates, which stood between HK$39,300 and HK$45,400 per buildable sq ft.

The winning tender came from a subsidiary of Tai Cheung Holdings (0088).

The price failed to beat the record set by a 79,148 sq ft plot on 12 Mount Kellett Road in 2006. Sun Hung Kai Properties (0016) had bought the site on The Peak for HK$42,196 per buildable sq ft.

"The Repulse Bay site went to Tai Cheung, which had stopped adding sites to its land bank for quite some time," Cushman & Wakefield's national director of valuation, Vincent Cheung Kiu-cho, said.

"Big developers were not very aggressive [on this site], as many of them may be looking for a higher profit margin from non- luxury projects."

A 38,837 sq ft site at Tuen Mun, however, performed in line with expectations, being snapped up by Emperor International (0163) for HK$180 million, or HK$4,635 per buildable sq ft.

Estimates had put the price between HK$117 million and HK$250 million.

"It can be built into low-density detached houses of about three stories each, for which there is some demand," Midland surveyors director Alvin Lam Tsz-pun said.

Meanwhile, Cheung Kong (Holdings) (0001) executive director Justin Chiu Kwok-hung said the developer does not plan to step up new-flat launches in the second-half.

"Our plan is to put 3,500-4,000 units on the market per year, and we will follow that," Chiu said.

Cheung Kong plans to put The Beaumont on the market by the end of June.

The 1,777-unit Tseung Kwan O project, awaiting government pre-sale approval, consists mainly of two- and three-bedroom units sized between 650 and 1,000 sq ft.

Prices will be in the same range as secondary market homes nearby.

A new hotel in the hip and trendy area of town incorporates cool colours

http://www.worldarchitecturenews.com/index.php?fuseaction=wanappln.projectview&upload_id=19667

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wowo, beautiful hotel!