〈Asian Post, September 16, 2017〉It's not an exaggeration to say that Mid-Levels Central is one of Hong Kong's most competitive and upmarket residential areas. There are various reasons for this: its proximity to the central business district, connectivity to the other parts of the island and Kowloon, and - with Hong Kong station nearby - one can reach the airport in 25 minutes flat.

Apartments in Mid-Levels are in heavy demand from the professionals working in Central and nearby Admiralty, mainly because of convenience and bigger living space. Hence, demand is high from buyers and investors alike whenever a new residential project comes to the market.

As a result, sales activity across the Mid-Levels Central area has been largely steady throughout the past year. A monthly average of 22 deal closings were recorded in the past 12 months to August, according to Land Registry records, with prices averaging about HK$22,230 per square foot.

During the past three months, the highest priced deals were concentrated in the well-known buildings, such as Grenville House, The Albany, Tregunter Tower 3 and Estoril Court.

In August, a 3,266 sq ft flat at Grenville House was sold for HK$110 million, equivalent to a unit price of HK$33,680 per square foot, according to Land Registry filings. Another 2,025 sq ft flat at The Albany fetched HK$85 million, or HK$41,975 per square foot.

Tregunter Tower 3 saw two units sold in August at an average price of HK$28,830 per square foot. Two flats, both at 2,945 sq ft, at Estoril Court sold for HK$65 million and HK$63.8 million, respectively, in July and August. New supply will remain limited this year, with slightly more than 200 new units brought to the market by a CK Property development and the stock units of a newbuild constructed by The Development Studio (TDS), founded by Keith Kerr, former CEO and chairman of Swire Properties.

〈The Stnadard, September 16, 2017〉China's factory output, retail sales, and fixed asset investment fell short of expectations although real estate investment picked up pace again in August with demand holding up despite various government curbs.

Real estate investment, which directly affects 40 other business sectors in China, is considered a crucial driver for the economy.

Analysts said an acceleration in property investment showed developers' willingness to replenish a falling inventory of finished homes, on the back of strong demand from smaller cities this year.

"I think there are still downward risks in the short term," said Ding Shuang, chief economist at Standard Chartered's Greater China research department. "The pick-up in investment is likely to be a short-term fluctuation while the overall trend points to a further slowdown for the rest of the year."

Meanwhile, the yuan slid for a third day. The central parity rate was pulled 83 points or 0.13 percent, to 6.5465 against the US dollar.

DBS Vickers Hong Kong is positive on retail malls in China on the back of a stronger recovery in the economy and weaker impact by e-commerce, and expects 58 percent growth of mall space in second-tier cities. Existing luxury complexes in big cities and suburban mass markets would outperform along with this trend, said DBS Vickers executive director Carol Wu.

Wu meanwhile is positive on China Resources Land (1109) and Longfor Properties (0960) due to strong rental growth. The researcher has a "Buy" on Joy City Property (0207), and has upgraded Hang Lung Properties (0101) to Buy.

Meanwhile, Hong Kong Trade Development Council said its export index fell to 46.2 in the third quarter of the year from 50.1 in the previous quarter, the first downturn since it launched four years ago, pointing to a slowdown in exports growth in the second half.

〈Hong Kong Business, September 15, 2017〉Safe, cosy and above all, affordable: a rare thing in Hong Kong, one of the world's most expensive places to find a home. But those are precisely the attributes that are driving young professionals in the city to choose co-living spaces - small rooms built around communal living and cooking areas.

"It gives you a lot of flexibility, I can have my own private space while making friends," said Andy Dong, 27, a corporate finance banker who has lived in the M3 International Youth Community for a year. He finds renting a 170 sq ft fully furnished room with a private bathroom for HK$10,000 a month the most cost-effective choice, with regular studio flats too expensive and flat-sharing not offering privacy. And living alone in a new city for the first time, the Beijing native does not feel lonely.

"At least you can find someone to give you a hand when you get sick," Dong said. M3 was one of the first co-living spaces to appear in Hong Kong two years ago, combining private rooms with common areas such as kitchens, gyms, living rooms and event venues. It now has three locations in Kowloon: Tsim Sha Tsui, Prince Edward and Sham Shui Po.

They have attracted not just students, for whom such a living style is quite common in college halls of residence, for example.

About 70 per cent of M3's tenants work in professional fields such as banking, law and accountancy, and most are aged from 22 to 28, according to M3 co-founder Samuel Gu.

And here is why. Rooms at M3 range from HK$4,500 to HK$13,600 a month, with the cheapest ones having communal bathrooms.

By comparison, the average cost of renting a 450 sq ft flat has risen for 17 consecutive months since March 2016 to HK$15,900 per month, according to Centaline Property data, with some studio flats in prime areas costing even more than that.

〈Business Daily, September 15, 2017〉Sun Hung Kai Properties (SHKP), Hong Kong's largest developer by value, said it had identified three possible sites suitable for building affordable housing under a new government-subsidised scheme to help young, first-time buyers.

That makes it the second homebuilder in the world's most expensive city to get behind the "Starter Homes" initiative, which is set to be fleshed out in a policy address next month.

"After the chief executive [of Hong Kong] announces the details of the scheme in October, SHKP will take the initiative and is happy to cooperate with the government to increase the supply of flats," said Mike Wong, SHKP's deputy managing director. The Starter Homes scheme was an election pledge by Chief Executive Carrie Lam Cheng Yuet-ngor to help young families who cannot afford private housing but earn too much to qualify for cheaper, public flats.

She said last week that the scheme would be outlined in more detail in a policy speech next month.

Wheelock Properties was the first private developer to announce plans to provide subsidised flats under the initiative. It said on Tuesday it had applied to turn its farmland in Tai Po into a 2,705-unit mixed private-public housing development that would include 1,005 starter homes.

Prices for private homes have surged for 16 straight months, making Hong Kong even less affordable.

SHKP made the announcement yesterday after reporting a 7.42 per cent increase in full-year core profit on the back of strong property sales.

Core profit, which excludes revaluation gains on investment properties, was HK$25.97 billion for the year to June, slightly above the HK$25.76 billion consensus estimate of eight analysts compiled by Bloomberg.

The developer, whose portfolio includes flats and retail and office space in Hong Kong and mainland China, increased its final dividend 7.1 per cent to HK$3 per share, from HK$2.80 a year ago.

〈The Standard, September 14, 2017〉When HNA Group, the Chinese conglomerate that's been buying up companies worldwide, spent US$3.5 billion (HK$27.3 billion) in Hong Kong this year on land for its first luxury real estate development, it had no problems getting bank funding.

But now HNA needs more - to refinance the short-term loans it used for its purchases, which start coming due in November, and then to actually build the towers that will lure high-end buyers and start generating revenue.

At least four out of eight banks known to have provided a combined US$1.5 billion worth of short-term financing for the land purchases to HNA's units have decided not to renew that credit, and don't intend to extend fresh loans to fund construction costs, according to people with knowledge of the matter.

Three banks haven't yet decided, and will base their decisions on the terms negotiated.

The first repayment deadline HNA faces is in November, when HK$3.5 billion in debt comes due. Two of the three lenders who made those loans have decided not to refinance them, the people said. The rest of the short-term loans on the project are due in January, February, and June.

The reasons have to do with scrutiny from Beijing over the transactions of HNA - which has bought stakes in Deutsche Bank, Hilton Worldwide Holdings, and numerous others - as well as uncertainty over future property prices, the people said.

Unlike assets HNA acquired globally, the four Kai Tak land parcels the firm bought are greenfield sites. HNA plans in 2019 to start pre-sales for the apartments to be built, with estimated costs for construction totaling more than HK$10 billion.

HNA responded through its listed units in Hong Kong that there are no changes to the group's syndicated loans at present, and that it enjoys sufficient support from banks, and has sufficient capital to support the project developments.