Hong Kong Real Estate Report Q3 2011
Includes 3 FREE quarterly updates
Hong Kong’s economy continued to improve solidly in 2010. GDP growth was 6.8% in real terms, supported primarily by the strong recovery of private consumption and external trade. Growth in Hong Kong was assisted by an improvement in the growth of its key trading partner, the US, and the continued strong growth of its other major trading partner, China. As a result the property sector in Hong Kong has enjoyed a solid recovery throughout 2010. The local property market registered an increase in transactions throughout most of 2010 compared with the previous year, supported by solid demand from flat buyers. Strong economic growth has also assisted demand for office space in Hong Kong during 2010.
Results from the major property developers in Hong Kong have now all been released for the 12 months to the end of December 2010. In the main all enjoyed a solid growth in profitability as a result of both solid rising rental growth and a recovery in selling prices.
During 2010, the Hong Kong Special Administrative Region (HKSAR) government implemented a number of housing measures, covering a very broad area of the housing sector in Hong Kong and catering for the needs of different income groups. These measures are very specific, including home-buyer protection measures, and aim to build a more sustainable framework for Hong Kong’s property market. The housing policy announced in the October 2010 Policy Address announced a couple of new policies including additional stamp duties, a minimum holding period for property investors to facilitate the residential rental market, and the revision of different levels of loan-to-value ratios to ensure a healthy mortgage-lending business.
All of these measures will stabilise the growth of residential property prices and ensure a healthier property market. Some degree of instability is to be expected as the market adjusts to these announcements, but BMI still expects the residential market to remain strong in 2011. The government’s measures to curb speculation in the property sector will slow market development and have already had an impact on speculative action in the market.
Hong Kong’s economy continued to improve solidly in 2010. GDP growth was 6.8% in real terms, supported primarily by the strong recovery of private consumption and external trade. Growth in Hong Kong was assisted by an improvement in the growth of its key trading partner, the US, and the continued strong growth of its other major trading partner, China. As a result the property sector in Hong Kong has enjoyed a solid recovery throughout 2010. The local property market registered an increase in transactions throughout most of 2010 compared with the previous year, supported by solid demand from flat buyers. Strong economic growth has also assisted demand for office space in Hong Kong during 2010.
Results from the major property developers in Hong Kong have now all been released for the 12 months to the end of December 2010. In the main all enjoyed a solid growth in profitability as a result of both solid rising rental growth and a recovery in selling prices.
During 2010, the Hong Kong Special Administrative Region (HKSAR) government implemented a number of housing measures, covering a very broad area of the housing sector in Hong Kong and catering for the needs of different income groups. These measures are very specific, including home-buyer protection measures, and aim to build a more sustainable framework for Hong Kong’s property market. The housing policy announced in the October 2010 Policy Address announced a couple of new policies including additional stamp duties, a minimum holding period for property investors to facilitate the residential rental market, and the revision of different levels of loan-to-value ratios to ensure a healthy mortgage-lending business.
All of these measures will stabilise the growth of residential property prices and ensure a healthier property market. Some degree of instability is to be expected as the market adjusts to these announcements, but BMI still expects the residential market to remain strong in 2011. The government’s measures to curb speculation in the property sector will slow market development and have already had an impact on speculative action in the market.
Contents
Executive SummarySWOT Analysis
Hong Kong Real Estate/Construction SWOT
Hong Kong Economic SWOT
Hong Kong Business Environment SWOT
Real Estate Market Overview
Table: Hong Kong’s Real Estate Market – Historic Rents, 2009 And 2010 (m2/month, US$)
Table: Hong Kong’s Real Estate Market – Net Yields, 2010 And 2011 (%)
Table: Hong Kong’s Real Estate Market – Terms Of Rental Contract/Lease, Mid-2010
Table: Hong Kong’s Real Estate Market – Available (m2) And Vacant Space (%), Mid-2010
Industry Forecast Scenario
Real Estate Outlook
Table: Hong Kong’s Real Estate Market – Rentals, 2010-2012 (m²/month, US$)
Table: Forecast Yield, 2008-2015 (%)
Construction Industry Outlook
Table: Hong Kong Construction And Infrastructure Industry Data
Table: Hong Kong Construction And Infrastructure Industry Data
Macroeconomic Outlook
Table: Hong Kong – Economic Activity, 2008-2015
Business Environment
Real Estate/Construction Business Environment Ratings
Table: Asia Real Estate/Construction Business Environment Ratings
Hong Kong’s RECBER
Hong Kong’s Business Environment
Table: BMI Business And Operation Risk Ratings
Table: BMI Legal Framework Rating
Table: Labour Force Quality
Table: Annual FDI Inflows Into Asia, 2006-2008
Table: Trade And Investment Ratings
Table: Hong Kong’s Top Export Destinations, 2001-2008 (US$mn)
Competitive Landscape
Company Monitor
Cheung Kong (Holdings)
Chinese Estates Group
Henderson Land Development (HLD)
Sino Group
Sun Hung Kai Properties
BMI Methodology
How We Generate Our Industry Forecasts
Construction Industry
Bank Lending
Real Estate/Construction Business Environment Rating
Table: Weighting Of Indicators
Project Finance Ratings Indicators
Table: Design And Construction Phase
Table: Commissioning And Operating Phase – Commercial Construction
Table: Commissioning And Operating Phase – Energy And Utilities
Table: Commissioning And Operating Phase – Transport
Sources Skip to top