The new disk of 14,000 people lined up to collect the building
In recent years, the government has been keen to increase housing supply, and new supply has been continually involved. In the second half of the year, more than 14,000 new platoons were queued for repossession, which is the largest tidal wave in recent years. The Tseung Kwan O, Tsuen Wan and Kai Tak districts are in the peak period of repossession. The market is estimated to have a downward pressure of 5% to 10%.
According to the estimated key date of the building book, about 25 new buildings can be delivered on time before the end of the year. Among them, 13 are medium and large projects that supply more than 600 people, including Nanchang Station (1,050) and Kai Tak (900 gangs), Tsuen Wan Sea Love (970 gang), etc., a total of 14,165 people involved.
There is no shortage of “one covenant" to sweep goods and avoid tax
Most of the 25 new ones that will be repossessed will be sold before the government blocked the “one-on-one" tax avoidance loophole. The proportion of investors is quite high. There are many cases of big-handed sweeping, such as the Kai Tak Hui which was sold in 2016. Some local investors have stipulated 145 million yuan to sweep 15 people with the first-hand status, and no need to pay a spicy tax; the first round of the Tseung Kwan O Hai Kai Hui has sold 9,282 tickets, exceeding 16 times. At that time, the agent revealed that there were family members who bought 8 units for 78 million yuan; in the same district, Lantang Ao had the chairman of the listed company swept into 16 units with a total of 240 million yuan.
As the proportion of investors entering the market is quite high, the industry expects that after the new batch of repossessions, the supply of rentals will inevitably increase, with the red envelope around the sea. For example, the East Coast is expected to be handed over at the beginning of next month. At present, 130 owners have already rented rent first. Secondly, Boao Bay in Tsuen Wan is estimated to close in September. Currently, 65 rentals are launched.
Not yet repossessed part of the renting price
The agent revealed that since the building has not yet been officially repossessed, most of the owners are asking for a price. Take Baiao Bay as an example. There is a middle-floor room A in Block 2A. The practical area is 1,252 square feet. The room is 4 rooms. The owner rents 100,000 yuan. 80 yuan, completely out of the market. Secondly, Kaide Tianzhu 3 high-rise D room, the practical area of 343 square feet, the owner asking price of 18,500 yuan, renting 54 yuan, about 35% higher than Kai Tak 1 1 room rent 40 yuan.
In fact, the new ones in the second half of the year were the most intensive and competitive in Kai Tak District (2,625), Tseung Kwan O (2,388) and Tsuen Wan (1,953). Taking Kai Tak District as an example, Kai Tak No. 1 has been enrolled for more than 500 flats for half a year. There are still 80 rents for rent, 2 flats for rent of 33 yuan, and owners’ rents of less than 2%. As the area is still in the stage of large-scale construction, rents are unlikely to rise sharply in a short period of time. I believe investors still have to face an ultra-low return dilemma.
Bu Shaoming, chief executive of Midland Real Estate, said that the new floods in the disaster-stricken areas include Tsuen Wan and Kai Tak. The short-term rents are down from 5% to 10%, but I believe that they can resume the upgrade after three to four months.
Chen Yongjie, vice chairman of the Asia Pacific Real Estate and president of the residential sector, believes that the rent pressure is only regional. As a whole, rents will continue to rise in the second half of the year, and the expected annual rental increase will exceed 15%.