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Old October 13th, 2009, 06:27 PM   #21
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Luxury homes draw strong demand as one buyer snaps up four flats
12 October 2009
The Standard

Demand for luxury homes continues to be hot, with a buyer reserving four apartments worth HK$26 million in the Kowloon Peak project Aria ahead of the official launch.

The buyer reportedly reserved three flats of 947 square feet each and one measuring 533 sq ft, market sources said.

Sun Hung Kai Properties (0016), which developed Aria, had requests to reserve 44 flats over the weekend, according to sources. The project is expected to be launched this week. Cheung Kong (Holdings) (0001) sold about 25 flats in the second phase of its Ho Man Tin project Celestial Heights over the weekend, sources said.


Sino Land (0083) sold 10 homes at its Sha Tin project The Palazzo, which was launched last year, a source said. Buoyed by strong mainland demand, a 1,296 square- foot flat was sold to a mainland investor for about HK$12 million, while a 888 sq-ft unit went for HK$9.3 million. Sino's Wu Kai Sha project, Lake Silver, had three deals.

A Hangzhou businessman bought two units, measuring 1,203 sq ft and 1,319 sq ft, for around HK$18 million.

The number of inventory properties in September fell 5.2 percent to 5,612 units, from 5,921 in May, the agent said.
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Old October 13th, 2009, 06:28 PM   #22
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Luxury homes draw strong demand as one buyer snaps up four flats
12 October 2009
The Standard

Demand for luxury homes continues to be hot, with a buyer reserving four apartments worth HK$26 million in the Kowloon Peak project Aria ahead of the official launch.

The buyer reportedly reserved three flats of 947 square feet each and one measuring 533 sq ft, market sources said.

Sun Hung Kai Properties (0016), which developed Aria, had requests to reserve 44 flats over the weekend, according to sources. The project is expected to be launched this week. Cheung Kong (Holdings) (0001) sold about 25 flats in the second phase of its Ho Man Tin project Celestial Heights over the weekend, sources said.


Sino Land (0083) sold 10 homes at its Sha Tin project The Palazzo, which was launched last year, a source said. Buoyed by strong mainland demand, a 1,296 square- foot flat was sold to a mainland investor for about HK$12 million, while a 888 sq-ft unit went for HK$9.3 million. Sino's Wu Kai Sha project, Lake Silver, had three deals.

A Hangzhou businessman bought two units, measuring 1,203 sq ft and 1,319 sq ft, for around HK$18 million.

The number of inventory properties in September fell 5.2 percent to 5,612 units, from 5,921 in May, the agent said.
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Old October 16th, 2009, 11:19 AM   #23
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Aria sales on song
8 October 2009
The Standard

Sun Hung Kai Properties (0016) plans to sell flats with mountain views at its Kowloon Peak luxury project Aria at HK$8,000 per square foot after a strong response from the market.

The homes in block five are about 37.5 percent cheaper than harborview flats, priced at HK$11,000 psf, sales project director Amy Teo said.

Around 100 Aria flats will be put on the market this year.

SHKP has had more than 3,000 inquiries since marketing began last month, she said.

According to market sources, more than 30 homes have been reserved with prices ranging from HK$9,900 to HK$12,000 psf.

Some flats on the lower floors were offered for HK$6,785, while high floors commanded around HK$8,000 psf. ALFRED LIU
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Old October 20th, 2009, 12:25 PM   #24
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200 flats hit Aria high note
19 October 2009
The Standard

Backed by the strong sentiment in the property market, Sun Hung Kai Properties (0016) sold more than 200 residential units at Kowloon Peak development Aria over the weekend.

SHKP generated HK$1.8 billion in revenue from the sales, Sun Hung Kai Real Estate Agency sales project director Amy Teo said. The firm may halt sales at Aria for this year after selling more than 200 units, she added.

Some 150 residential units were sold on Saturday. The average selling price of the project is HK$9,200 per square foot, with the most expensive unit selling for HK$18.2 million.

One customer bought three flats for a total of HK$40 million, SHKP said.

More than 50,000 people have visited the show flats since they opened on Friday.

Other new projects recorded only a few transactions over the weekend.

The 10 major housing estates recorded 33 deals, up from 32 the previous weekend, according to Midland Realty.

Meanwhile, UBS analyst Eric Wong Chun-yu warned the government may be helping create the next property bubble, which could be bigger than that of 1997.

``Record-low supplies expose [Hong Kong] to the risk of record-high rents and business costs as the economy recovers, and the risk of price bubbles is aggravated by the global monetary supply bubble not finding relief,'' Wong wrote in a report.
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Old November 3rd, 2009, 12:57 PM   #25
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Bank mortgages in tune with Aria
30 October 2009
South China Morning Post

After running a dedicated mortgage centre for buyers interested in its latest upmarket project, Sun Hung Kai Properties (SHKP) is working with another bank to offer a chance to purchase at the five-tower Aria complex at Kowloon Peak.

SHKP is collaborating with the Bank of China (Hong Kong) to offer "Elegance-Nobility" mortgages and related services for buyers interested in any of the 723 flats at Aria. The initiative follows a dedicated mortgage centre for Aria purchases run through this month by Hang Seng Bank.

"Aria will be a top luxury residence featuring the finest lifestyle," says Amy Teo, Sun Hung Kai Real Estate Agency project director of sales. "We have been working with different top brands to ensure this goal, including this latest partnership with the Bank of China."

Lam Kam-yu, personal banking and product management head of mortgages for Bank of China (Hong Kong), says the mortgages will include a prime rate plan, 95 per cent plan and HIBOR, All-You-Want and Smart mortgages.

"Buyers will also be able to enjoy our new professional mortgage consultancy hotline for the mainland and Hong Kong," Lam says. "Personal banking managers will also advise buyers on wealth management and financial planning."

Buyers will also be entitled to waivers of the annual fee for a Bank of China platinum card, monthly account service charge and minimum opening deposit requirement for a Wealth Management VIP account. Wealth Management VIP customers enjoy preferential banking services at designated branches on the mainland and overseas.

Aria's standard units will range from 533 to 2,123 sqft, with one to four bedrooms, and two en suites, plus storerooms and helper's quarters. Special units will range from 1,000 to 4,600 sqft. Most units will have balconies with open views of the harbour. There will also be club facilities.
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Old November 9th, 2009, 04:36 PM   #26
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By fatshe :

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Old November 12th, 2009, 07:12 PM   #27
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By fatshe :

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Old November 13th, 2009, 05:29 AM   #28
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No wall here.
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Old November 25th, 2009, 05:44 PM   #29
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Green policy shift may hit buyers
25 November 2009
South China Morning Post

Buyers could eventually become losers in an idea being considered by the government to scrap land premium concessions granted to developers for the construction of "green" features such as balconies and utility areas, property analysts said.

To sustain profit margins, developers may either drop the features from their building plans or build the features but pass the extra costs on to buyers. Buyers would suffer either way, the analysts said.

Chief Executive Donald Tsang Yam-kuen said on Friday the government would review the present system in view of "inflated" residential property prices.

Currently, developers can pay a premium of up to HK$196,700 or HK$3,643 per square foot for adding a 54 square foot balcony and also HK$24,680 or HK$1,543 per square foot for adding a 16 sq ft utility platform on each unit.

But while developers get an effective discount on the land premium, they must pay to build green features, as buyers pay the full rate for them, which helps developers generate higher profits.

Surveyors believe developers would not build green features if the government cancelled the incentive.

"If the green features are not built, then clearly purchasers will lose the benefit of having them in their units. But similarly the developer will not be able to charge for what has not been built," said Nicholas Brooke, the chairman of Professional Property Services.

But Brooke said some developers would continue to provide green features as a way of differentiating their product from others.

He said features that contributed to sustainability should be made mandatory and count for gross floor area calculations, while the remainder should not attract concessions but be left to the discretion of the developer, who might or might not choose to include them for product differentiation purposes.

A surveyor said the profit margin of developers would be reduced if the government revised the policy.

"Developers were willing to accept a minimum profit margin of 20 per cent before the government released the green policy. But they are now looking at a minimum profit margin of 25 per cent as a result of being able to generate extra profit from selling the areas," he said.

"I don't think they would be willing to accept a reduced profit margin of 20 per cent now."

Instead, many developers would elect not to build green features if the incentive policy was cancelled and would raise their prices, he said.

"Some other developers may try to generate higher profit margins by providing green features. But it remains to be seen if buyers are willing to pay a premium for such units or not," he said.

David Ng, the head of regional property research at the Royal Bank of Scotland, said scrapping the green concessions would not reduce the profit margin of developers.

"Developers would definitely raise their sales prices further to cover the loss in profit margin. The new residential supply would be tight in the next few years, and they would hold the units for a better price rather than sell at a lower price," he said.

The average property price at Sun Hung Kai Properties' Aria, a new project in Ngau Chi Wan, was 100 per cent higher than at the 10-year-old Scenic View in the same area developed by the same developer.

But sales at Aria remained strong, which proved the market had accepted a premium price for new projects, Ng said.

"It showed that buyers are willing to pay higher property prices for new projects, a better clubhouse and facilities," said Ng.

Eric Wong Chun-yu, a co-head of Asia property research at UBS, agreed that the choice open to buyers was very clear.


"They know what is happening. They know the efficiency rates of the new projects are low. They also know what the developers are doing," he said.

"But the strong sales of new projects in the last few years showed buyers don't really care about the efficiency rate and that part of the money paid for common areas."
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Old December 1st, 2009, 05:10 PM   #30
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Top right - taken 11/2

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Old December 11th, 2009, 06:04 PM   #31
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12/6

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Old December 12th, 2009, 09:18 PM   #32
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DBS Cuts SHK Ppties To Hold
Tips As Fairly Valued

21 October 2009
Dow Jones International News

STOCK CALL: DBS Vickers cuts SHK Properties (0016.HK) to Hold from Buy, target price unchanged at HK$120.20. Notes buying interest weaker than expected for Aria project in Ngau Chi Wan due to aggressive pricing; still, says if assuming HK$9,000 psf, project fully sold, Aria should yield pretax earnings of HK$1.6 billion. Coupled with pre-sale of other projects such as The Latitude, Lime Habitat, house estimates SHKP already locked in 30% of projected development earnings for FY11. Downgrade due to shares +14% in past month, trading at 6% premium to estimated NAV, indicating stock "sounds fairly valued." SHKP ended down 2.0% at HK$126.80 yesterday.
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Old January 4th, 2010, 11:43 AM   #33
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SHKP Wins the Most Outstanding Development for The Cullinan and the Most Outstanding Club House for Aria in Elite Homes Awards
Press Release
29 December 2009

Sun Hung Kai Properties' (SHKP) The Cullinan was named the Most Outstanding Development and Aria won the Most Outstanding Club House award in a poll by the Elite Homes real estate magazine for unrivalled architecture and comprehensive facilities.

The awards are in their second year and recognize outstanding residential projects in Hong Kong. Top architects and interior designers rated entries on overall planning, club houses, apartments and houses on stringent criteria. The Cullinan was chosen the Most Outstanding Development for excellent architecture and planning, and Aria was deemed to have the Most Outstanding Club House for its innovative design and full facilities.

Sun Hung Kai Real Estate Agency Senior Sales and Marketing Manager Andy Chan said: "The Cullinan's the Most Outstanding Development title shows that SHKP leads in luxury. The project has the finest in planning, architecture, design and materials. It will be Hong Kong's tallest integrated residence. The glass curtain and twin-tower design maximize the waterfront location and make it a new landmark in Hong Kong."

Sun Hung Kai Real Estate Agency Project Director - Sales Amy Teo was delighted at Aria's Most Outstanding Club House honour, saying: "SHKP always offers the finest properties facilities and quality to meet buyers' evolving needs. The six-level club house is spread at the base and top of Aria. The upper levels will have a crown design with glass walls to stand out, and there will be deluxe facilities and attentive service tailored to the most discerning residents."
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Old January 4th, 2010, 11:53 AM   #34
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So why are most of these skyscraper walls completely covered in that green stuff when under construction?
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Old January 4th, 2010, 12:20 PM   #35
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Quote:
Originally Posted by Ni3lS View Post
So why are most of these skyscraper walls completely covered in that green stuff when under construction?
U/C buildings have bamboo scaffolding and the green net goes on top of that to prevent materials from falling out / protect against the elements.
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Old January 11th, 2010, 03:42 PM   #36
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Old January 18th, 2010, 07:22 PM   #37
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Old February 3rd, 2010, 08:44 PM   #38
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Upgraders key to growth, but can they afford it?
David Ng
2 December 2009
South China Morning Post

House prices in Hong Kong's primary market have risen sharply and may even continue rising next year. But it would be misleading to regard this as a barometer of overall conditions in the secondary market, where there is no supply shortage and prices are reaching the limits of affordability.

We expect no further price rises for the remainder of the year and, at best, modest gains of no more than 5 per cent next year. The price surge in the primary market has stemmed from the just 8,800 new units completed last year, far fewer than the 26,400 units in 2003.

This reduced pipeline of supply has lessened competition among developers and enabled them to charge hefty price premiums on new projects compared with those in the secondary market. For example, prices of flats offering sea views in Sun Hung Kai Properties' latest development, the Aria, were pitched at HK$10,000 per square foot, against secondary market prices for similar units at Scenic Garden (also by SHKP and built 10 years ago) of below HK$5,000 per square foot.

The secondary market makes up the bulk of sales in Hong Kong, rising to 88 per cent last year from 56 per cent in 2003, and more accurately reflects overall market sentiment, potential customers' ability to buy, and price trends. And there is an oversupply in the secondary market.

At the end of March, there were 2.29 million households in Hong Kong and 2.52 million existing residential flats. Take public housing units and the households using them out of the equation, and there were 1.22 million households and 1.39 million units. Supply plainly exceeds demand.

So, where is the driver for further price growth? Recent headlines about record asking prices for high-end projects such as the Masterpiece (HK$20,000 per square foot), 39 Conduit Road (HK$40,000 per square foot), and Westminster Terrace (HK$11,000 per square foot), simply do not reflect overall market sentiment.

In the first 10 months of the year, primary market transactions accounted for 16 per cent of total deals, and fewer than one in 20 transactions done in this market were closed at above HK$10 million.

Property purchases above HK$10 million per unit are usually made by the wealthy (many of them mainlanders), and not by first-time local homebuyers or first-time upgraders. Demand is therefore not from mainstream buyers and the fervour for luxurious properties can only have a short-lived spillover effect on the overall market.

Transactions below HK$3 million accounted for 74 per cent of the secondary market and we assume first-time homebuyers fall under this category.

Small to medium-sized flats (less than 70 square metres) accounted for 81 per cent of total housing stock in the private residential market versus only 60 per cent of potential buyers. We arrive at 60 per cent by dividing the number of households with monthly incomes of HK$20,000 to HK$40,000 by the number who have monthly incomes of more than HK$20,000, assuming households earning less than HK$20,000 a month cannot afford private homes.

Using an affordability ratio of 40 per cent, households earning HK$40,000 a month can afford a HK$3 million home. This indicates supply exceeds demand in the secondary market among first-time homebuyers and also in small to medium-sized units.

So if we cannot rely on big spenders (including expatriates) or first-time buyers (including immigrants), the only category remaining to drive demand should be local upgraders. Sadly, we have found that potential upgraders, even if they first bought their homes at the bottom of the market in 2003 and have enjoyed the strong price growth of the last 6½ years, still cannot easily afford to upgrade from Class B (40 sq metres to 70 sq metres) to Class C (70 sq metres to 100 sq metres) flats.

A family of three to four should have a strong desire to live in a flat of 100 sq metres or more and Hong Kong developers are well aware of that. However, the price gap between Class B and Class C (85 per cent on the Island, 92 per cent in Kowloon, and 75 per cent in the New Territories), combined with slow income growth (14.3 per cent for the financial industry from 2003-08), prevents existing homeowners from moving up.

This trend looks likely to continue in the current economic environment and supports our conservative price assumptions for mass-market residential products. This is nothing new but reminds us again of a key fundamental: if the economy is not growing much (or at least the expectation is not bullish), it will be difficult for property prices to reach new heights.

We see no reason to be any more bullish about Hong Kong's economy over the next five years versus the last five years. Instead, we see a risk that property prices in the secondary market may show lower peaks in future unless new drivers of the economy emerge.
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Old February 9th, 2010, 04:09 PM   #39
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Old March 9th, 2010, 02:54 PM   #40
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