〈Asian Post, Jan 7, 2017〉Sales of top quality commercial buildings costing billions of Hong Kong dollars are expected to fall this year as tighter capital controls in China could deter mainland corporations from acquiring overseas assets.

The latest policy will reduce the number of deep-pocketed mainland enterprises making property purchases in Hong Kong, which has emerged as a favoured investment destination.

Alva To Yu-hung, senior managing director of Hong Kong at DTZ Cushman & Wakefield, said the controls could deal a blow to the investment property market.

"Mega deals involving more than HK$10 billion will definitely slow down. State-owned enterprises will be most affected by the controls as they need to seek approval from mainland authorities before sending the money out to Hong Kong," he said.

To said many purchase decisions would be deferred indefinitely until a change of policy. Albert Lau, the chief executive of Savills China, said in Shanghai the central government has clearly indicated its determination to regulate the capital outflow in an orderly fashion.

"It is difficult for companies without offshore operations to transfer large amounts of money to acquire overseas properties at this moment as the policy was just rolled out in November," he said.

JLL head of capital markets Joseph Tsang believes the controls would affect sentiment but deals being negotiated were likely to face temporary delays.

"China's state-owned companies are a major buying force for trophy assets. I think they are looking for different ways to raise funds instead of calling off the deals," Tsang said.

Still, negotiations on the sale of commercial blocks will take longer than earlier expected, said Tsang. Hong Kong's wealthiest man, Li Ka-shing, was tight lipped on the progress for the sale of his firm's stake in the 73-storey office tower, The Center in Central.

"We will not disclose anything until a deal is done. There are lots of purchase offers being presented to us but not all of them can be closed deals. Majority of them are not successful," he said ahead of the Cheung Kong group's annual dinner on Thursday.

〈Asian Post, Jan 7, 2017〉Tseung Kwan O has come a long way from its time as a quiet seaside suburb, and is now a flourishing area of modern buildings, with property developers offering luxury facilities and top-class construction to attract young middle-class couples.

Agents and developers alike say young people are drawn to the area because they can find bigger, newer homes, with more space around them to relax in and play than in older, smaller flats on Hong Kong Island and Kowloon.

Victor Tin, associate director, sales department, at Sino Land, says there are lots of young buyers moving to the burgeoning new district, who rely heavily on their smartphones and smart technology.

Sino started the handover of flats late last month to buyers in its new project Corinthia By The Sea in Tseung Kwan O South. The company used smart technology in every aspect of the building, from developing an app to reducing the use of paper and using technology to communicate at the time that residents took occupation of the flats. Once the buyers move in they can make use of the Sino sales app to pay management fees or book clubhouse facilities.

Corinthia By The Sea has 536 flats, with sizes ranging from 250 sq ft to 1,200 sq ft, and they are configured from one bedroom to four bedrooms. Unit prices range from HK$13,000 to HK$16,000 per sq ft on average depending on the size and views.

Tin says the use of technology has to be planned at the earliest stage of construction. He says Sino wants its people to have a mindset that the property developer is a smart living, smart management and smart lifestyle company.

"So when we start doing the marketing buyers know that we use smart technology in the apartments," Tin says.

This means that the property developer uses environmentally friendly materials in construction and in electrical materials such as LED lightning and electrical chargers in car parks in Corinthia By The Sea.

"We put in a lot of effort into the environment, we want to be eco-friendly," Tin says. He points out that LED lighting was used throughout Corinthia By The Sea, adding that the designs including the balconies are environmentally friendly. Electric chargers were provided in the car parks as demand grows for electrical cars.

The company's culture is to enrich the clients' experience, so apart from using a lot of hardware it also uses software, so that its people can communicate with flat owners in a straightforward manner, Tin points out.

Sino is known for its expertise in developing clubhouses for its property projects and Corinthia By The Sea's clubhouse is no exception. It's tastefully decorated with light colours, plush sofas and large community areas. The 25,000 sq ft clubhouse has indoor and outdoor swimming pools and Wi-fi can be used throughout the place.

〈China Daily, Jan 6, 2017〉China Overseas Land increases purchase costs for second phase of flats built on former airport site in HK to factor recent land purchase prices

China Overseas Land & Investment has increased the sale price of its latest apartments by 20 per cent on average, setting an aggressive and discordant tone during an election year with the Hong Kong government's pledge to make housing more affordable.

The first 125 units of One Kai Tak Phase Two, built on the city's former airport site, will be offered between HK$17,414 per square foot and up to HK$26,013 per square foot.

After taking into account a 14.5 per cent rebate, the price will come down to HK$14,889 and HK$22,240 per square foot. The developer said the average discounted price was HK$17,500 per square foot, about 20 per cent above the previous HK$14,400 per square foot in August.

"The price has factored in the recent land sale result in the area and the latest market conditions," said Tony Yau, a director and general manager at China Overseas Property, a subsidiary of China Overseas Holdings, the parent of China Overseas Land.

That means the smallest unit measuring 375 square feet at the apartment complex will be priced at about HK$6.42 million, or HK$17,000 per square foot after discounts. The largest units at the complex is about 799 square feet.

China Overseas' aggressive pricing follows record bids placed last year by Chinese developers for land parcels at Kai Tak. HNA Group, a Chinese conglomerate that owns hotels, golf courses and Hainan Airlines, paid a record HK$13,600 per square foot for land at the former airfield.

However, China Overseas Land bought the two adjoining sites, with a total gross floor area of 880,280 square feet, for a combined HK$4.54 billion, or HK$5,157 per square foot in June 2013. In terms of per square foot, it was the lowest among the eight residential sites being sold by government tender in the last three years.

China Overseas Land's One Kai Tak development is also the only project under the "Hong Kong Property for Hong Kong People" scheme. The launch of One Kai Tak and Grand Yoho will test the faith of the residential market as there have been lots of changes in the Kai Tak area during the past 12 months," said Louis Chan Wing-kit, managing director of Centaline Property Agency's residential department.

There are about 10,000 units in the sales pipeline in the area, he said. "Over the next 10 years, the Kai Tak area will be transformed into another Kowloon Station, which is a luxury residential area," Cha said.

The market should not compare One Kai Tak with old districts such as San Po Kong or Kwun Tong area, he said.

Tycoon Li Ka-shing, the chairman of Cheung Kong Property Holdings said home prices did increase slightly after the government raised stamp duty but they are unlikely to keep rising. "I don't feel comfortable if flats are too small. Cheung Kong may have one or two (projects with small flats)," Li said.

〈The Standard, Jan 6, 2017〉Mini-flats are not my thing, says CK Hutchison chairman Li Ka-shing, referring to developers' putting sub- divided flat-like homes on the market.

The tycoon appeared at the Hong Kong Convention and Exhibition Centre before attending the firm's annual dinner and was asked to comment on the trend that Hongkongers are living in a much smaller space than before.

Li stressed that it is not the usual practise of Cheung Kong Property (1113) to put out mini-sized flats. "We seldom have projects like that, perhaps one or two," Li said. "We don't want homes to be too small, it is a basic need.

"It makes me feel bad," he added, "but it also depends on the person's capability. If a person is restricted by his wages and really has to live in a small place, I hope he moves to a bigger one once the situation gets better."

Developers' new projects have made headlines with their studio flats of about 100 square feet. It is seen as a move to draw sales by pushing down prices to make homes appear more affordable.

Li said last year that the economy was at it worst in 20 years. His tone turned slightly softer yesterday. "Home prices will go up a little, but they won't go up at a derailing speed," he said. And he does not expect big interest rate increases this year.

〈Asian Post, Jan 5, 2017〉Hong Kong's economy is set for a challenging year with a strong local currency and anticipated interest rate rises in the United States, economists have warned.

Despite recent signs of improvement and figures showing the city on track to meet its 1.5 per cent growth target for 2016, the local economy is likely to record slower growth in the year of the rooster, under pressure from weak exports, a slumping property market and slowing private consumption.

There was good news yesterday however with a University of Hong Kong macroeconomic study projecting 2.3 per cent growth year on year for the first quarter.

Paul Tang Sai-on, chief economist at the Bank of East Asia, said he expected the city's economy to expand 1.4 per centin 2017.

"The major concern for next year's GDP growth is private consumption," he said.

He said investment sentiment in the city's property market could be dampened by capital outflows that could be triggered by several rounds of interest rate rises anticipated in the US in the coming year.

Hong Kong's economy grew 1.9 per cent in the third quarter of last year, marking an improvement on the first and second quarter growth figures of 0.8 and 1.7 per cent respectively. But Tang said the resilent labour market, which had provided strong support for the economy in 2016, might not be able to stimulate growth this year amid new risks hanging over the city.