〈The Standard, Oct 22, 2022〉A sudden surge appeared in the sluggish local commercial buildings market last month as four big-ticket transactions were recorded amid prices dropping lower than the previous year.

The largest deal is the disposal of the en-bloc Goldin Financial Global Centre in Kowloon East.

The 31-floor, 920-thousand-square-foot building was reportedly sold at HK$6.9 billion - HK$7,500 per square foot - 30 percent lower than the selling price of other grade-A buildings in the Kowloon area. Its ex-holder, Goldin Financial (0530), has reportedly faced financial difficulties in recent years.

The second largest deal is the disposal of Ares SSG Capital Management's purchase of a 51 percent stake in New World's (0017) Wing Hong Street office development project in Cheung Sha Wan for HK$3.08 billion.

〈Hong Kong Business, Oct 21, 2022〉Chief Executive John Lee in his first policy address identified strategies the government will employ to solve the housing problems in Hong Kong and meet the projected demand in both public and private housing.

The government said there is sufficient land to build 360,000 public housing units in the next 10 years, which exceeds the projected demand of 301,000. It said that only around one-third of the units will be completed in the first five years from 2023 to 2028, and the remaining will be built in the following five years.

"We must overcome constraints to create supply to address short-term public housing shortage, and ensure a steady private housing supply at the same time," Lee said, adding that it is also important to enhance “quantity, speed, efficiency and quality in land production,” and ensure a “long-term plant to steadily increase supplies.”

〈Hong Kong Business, Oct 20, 2022〉Henderson Land has signed a strategic partnership agreement with China Resources Land Limited (CR Land) to develop projects in mainland China and Hong Kong.

“The signing of this Strategic Partnership Agreement is going to allow both parties to play to their unique strengths and create a win-win, mutually beneficial relationship,” Peter Lee Ka-kit, Chairman of Henderson Land Group, said.

Li Xin, Chairman of the Board of CR Land added the partnership will boost collaboration in the Northern Metropolis and the integration of the Greater Bay Area.

〈Asian Post, Oct 19, 2022〉Home prices in Hong Kong are expected to consolidate further as mortgage rates rise and the demand for new primary, second homes remains sluggish.

Prices have reportedly declined by about 8% year-to-date, according to DBS’ latest Hong Kong Property Sector Outlook report.

Developers in the city are expected to retain their conservative pricing strategy moving forward, said Jeff Yau, Hong Kong property sector analyst, group research, for DBS Hong Kong. The upward pressure from banks raising their mortgage rate caps and prime rates is also expected to damplen market sentiment.

Demand has been focused on mass market projects, said Yau.

〈Asian Post, Oct 18, 2022〉Real estate investors may have shunned Hong Kong in the past two years, but experts’ 2023 outlook—particularly for the industrial and retail sectors—may entice them to reconsider the city as a property investment destination. The property market is poised to end its down-cycle in 2022 and enter 2023 with hopes of normalisation.

“With the gradual easing of the social distancing and travel restrictions, we would expect to see a moderate recovery across all the sectors with momentum gathering pace starting in the last quarter of this year,” said Dorothy Chow Colliers’ executive director of Valuation & Advisory Services for Asia.

Amongst sectors, Chow said the industrial sector will remain the most attractive to investors come next year.

“High yield assets have become the focus of the investors nowadays, and these would include industrial properties, logistic, and alternative assets,” said Chow.

“We expect the industrial market to have an increase in the rental and the capital levels next year,” she added.

Chow said industrial assets are popular amongst inventors because they fetch yields of 3% to 5% compared with typical offices or commercial units, which fetch less than 3% yield.