〈Asian Post, March 30, 2018〉The prices of lived-in homes in Hong Kong soared last month at their fastest pace in 10 months, as buyers rushed to get ahead of an expected increase in mortgage rates.

The surge in prices was fuelled by a shortage of available properties, which forced buyers to raise their bids in the world's most expensive real estate market.

An index of secondary market home prices rose 5.8 points, or by 1.6 per cent, to 364.1 in February, according to data released by the Rating and Valuation Department, faster than the 1.53 per cent gain in January. The rental index rebounded by 0.1 per cent to 187.5, illustrating an increase in leasing costs, the data showed.?

"Property owners aren't selling until they get a higher offer, as they know there are limited choices available in the secondary market," said Derek Chan, head of research at Ricacorp Properties. "It will push up growth in prices."

Hong Kong's home prices have surged for 23 consecutive months, the longest stretch for a property bull market in a quarter of a century, making the city the world's costliest urban centre to live and work.

This stretch of gains could falter in the second half of 2018, as the city's commercial banks are poised to raise their mortgage rates, following six increases in rates since December 2015.?

Hong Kong's one-month interbank offered rate upon which most of the city's new mortgages are based, rose to 1.03 per cent yesterday, up from 0.81 per cent a week earlier. "It will affect buying sentiment," Chan said.

Midland Realty said home prices have risen by 5.01 per cent in the first quarter, based on its own data.

〈Asian Post, March 29, 2018〉Hong Kong's two largest property agents, Centaline and Midland, enjoyed sharp increases in commission revenue generated in the city last year, as sales of new homes and prices surged to record highs.

But market commentators warned the sector's outlook remained clouded by uncertainty over rising interest rates, and that the volatile equity market could also dent buying desire.

Privately run Centaline Group, which operates more than 3,000 branches, including in 37 mainland cities, reported profit of HK$1.05 billion last year.

That was down 17 per cent from the previous year, as its mainland home sales were hampered by market cooling measures, according to a statement issued yesterday.

Commission revenue in Hong Kong, however, where it operates a chain of 640 branches under the Centaline Property Agency and Ricacorp Properties brands, hit a record HK$5 billion, an 18 per cent rise from HK$4.27 billion in 2016.

Midland Holdings, the only listed property agent in Hong Kong, reported a massive 1,700 per cent leap in profit to HK$193 million last year, from HK$11 million in 2016. Its commission fee income rose 4.4 per cent to HK$5.3 billion for the 12 months to December 31 last year.

Together with its subsidiary Hong Kong Property Services, Midland has about 600 branches in the city. It returned to profit of HK$11 million in 2016, after suffering a loss of HK$99 million in 2015.

Freddie Wong Kin-yip, Midland's chairman, said the group's net profit was at a five-year high.However, he said in the future, "a return of volatility in global and local financial markets could mean fund flows in Hong Kong become more volatile too".

Alfred Lau, a property analyst at Bocom International, said: "2017 was an exceptionally good year for the Hong Kong property market, with prices driven by excess liquidity and low interest rates.

"But 2018 is looking more volatile, considering interest rates are entering an upwards cycle and there has been a rise in new supply."

The accelerated home price growth has also raised concerns from the Hong Kong Monetary Authority, which said in its half-yearly Financial Stability report yesterday, that the outlook for the residential property market remained "uncertain".

"In the near term, the current favourable domestic economic conditions, perceived housing shortage, low mortgage rates and alternative sources of home financing will continue to support demand for property - but the recent sell-offs in global financial markets may dampen property market sentiments."

Derek Chan, the head of research at Ricacrop, said he expected sales of new flats to further increase to 22,000, with an estimated total transaction value of HK$295 billion this year.

〈The Standard, March 28, 2018〉The Hong Kong Monetary Authority (HKMA) said the ratio of home prices to household income rose but the future of the property market is still uncertain.

It said domestic mortgage rates will rise eventually following the process of US monetary policy normalization and that heightened global financial market volatility will quicken the increase in Hong Kong dollar interest rates.

Meanwhile, Midland Holdings (1200) saw a 170 percent jump in net profit to HK$193 million while Centaline Property Agency's net profit fell 17 percent to HK$1 billion.

In other news about the property market, a unit at Island Harbourview in Olympic Station, with an area of 902 square feet, sold for HK$22.8 million. The owner had bought the property in 1995 for HK$7.1 million.

Also, Newtree Group Holdings (1323) revealed it had purchased the 23rd floor of the Far East Consortium Building in Central, with a total area of 7,316 square feet, at a price of HK$146 million, or HK$20,000 per square foot.

The group believes this acquisition will bring a long-term investment return and reduce its rental expenses. In the retail sector, Maureen Fung Sau-yim, executive director of SHKP (China), forecast that APM will record sales of HK$180 million during the Easter promotion period from March 24 to April 15, representing a 15 percent increase over last year.

〈China Post, March 28, 2018〉Chief Executive Carrie Lam Cheng Yuet-ngor yesterday ruled out rent control or subsidies to help residents struggling with a booming housing market, saying they would backfire and only worsen the city's problems.

Instead, the chief executive pledged to find ways to increase land supply for the construction of new flats.Lam appeared before lawmakers yesterday during her monthly 30-minute question-and-answer session at the Legislative Council.

Lam also said she had never publicly promised to take on "three mountains" - major issues faced by the city she reportedly identified two years ago: the controversial management of public housing shopping centres by the Link Reit, repeated MTR fare increases and the scrapping of the offsetting mechanism for the Mandatory Provident Fund, which allows bosses to settle severance or long-service payments through employee contributions.

Pro-establishment lawmaker Vincent Cheng Wing-shun asked Lam whether the government would consider subsidising rents in the private market to make life easier for lower-income families.

"Will the government do something for the more than 90,000 families or individuals living in subdivided flats, to alleviate their burden?" he said.

But Lam countered that a "direct subsidy would only benefit property owners, not the tenants, so we need to be very cautious".

Hong Kong officials have previously voiced the view that an official rent subsidy would only prompt property owners to increase rents accordingly.

The government had instead been offering help by making it easier for low-income residents to apply for the Working Family Allowance, Lam said.

〈China Post, March 27, 2018〉Profit last year for conglomerate Shun Tak Holdings (0242) amounted to HK$1.24 billion against HK$30 million in 2016.

And revenue for its property division reflected impressive year-on-year growth in rising to HK$1.18 billion versus HK$124 million in the previous 12 months.

On that, Shun Tak said revenue from the sales of Nova Park in Macau and income from the disposal of the Chung Hom Kok Collection in Hong Kong had given a solid boost to the year's performance.

Basic earnings for the year came in at HK47.7 cents per share compared to a loss per share of 19.3 HK cents previously. The board proposed a final dividend of 6 HK cents, making it 12 HK cents for the year. It did not declare a dividend in 2016.

Meanwhile, Shih Wing-ching, founder of Centaline Property Agency, said now is not the right time to invest in Hong Kong real estate. Shih said in a forum organized by Centaline that prices will slow down gradually.

He also said that he believes a trade war between China and the United States will go from being a fear to a reality, which must eventually have an impact on the stock market and the property market. But the effect will not be immediate, he added.