〈The Standard, July 12, 2024〉In times of property market fluctuations, a financial expert suggests, refinancing is a way to recoup losses, especially if prices happen to rebound significantly in the short term.
People aged 55 or above can get a reverse mortgage as long as their properties are fully paid for. They then receive monthly payouts based on the value of their properties and the payment terms. Generally, the higher the property's value, the more money they can get.
Amid a widespread fear of being caught out through mortgaging their homes at low price levels, there were only 63 reverse mortgage applications in April, a 22 percent plunge from the 81 seen in March, data from Hong Kong Mortgage Corp showed.
The government-owned agency launched the reverse mortgage program in 2011 to provide a retirement plan for seniors.
If a person aged 60 applies for a fixed-rate mortgage plan for life, secured by a property valued at HK$6 million, he or she can get HK$13,200 a month.
But if the property's value increases to, say, HK$8 million, the owner could get HK$4,400 more, with all else unchanged.
〈Hong Kong Business, July 11, 2024〉Residential transactions surged to over 8,500 units, the highest monthly figure in nearly a decade following the complete withdrawal of cooling measures in February, Cushman & Wakefield reported.
Developers are also actively launching new projects after the removal of cooling measures, with some offering competitive pricing or discounts to attract buyers.
As a result, first-home sales have garnered attention in the primary market, comprising 35% of overall transactions from January to May.
On the flip side, transaction volume declined to around 5,550 units in May amidst delayed interest rate cuts and uncertain market conditions.
For Q2, Cushman & Wakefield expects the total transactions to reach 19,000 units, increasing 93% quarter-on-quarter (QoQ) and 56% year-on-year (YoY).
〈Asian Post, July 10, 2024〉The commercial investment and housing markets in Hong Kong are grappling with stringent mortgage loan approvals and high interest rates, which are expected to further decrease property prices over the next six months, according to JLL's mid-year market review and forecast.
"The stringent mortgage loan conditions have dampened the purchasing enthusiasm of investors, resulting in a decline in transaction volume. Such will further suppress the capital values of properties,” said Cathie Chung, senior director of Research at JLL.
“The commercial investment and home sales markets have been hit the hardest, ultimately affecting the overall economy. Demand-side support from the government is needed before the public loses confidence in the property market,” she added.
The office leasing market saw limited expansion and more lease renewals, leading to a soft performance in the first half of 2024. Gross leasing volume dropped by 28.1% from the latter half of 2023. Despite this, the market recorded a positive net absorption of 502,300 square feet due to the realisation of pre-committed space from new completions.
〈Macau Daily News, July 9, 2024〉New residential mortgage loan approvals fell 26.3% in May while commercial real estate loans rose 133.2% according to statistics released Wednesday by Macau’s Monetary Authority. Outstanding balances for both residential and commercial loans declined from the previous month.
Residential mortgage loan balances fell 0.3% to MOP28.2 billion while commercial balances dropped 0.2% to MOP19.5 billion. Delinquency ratios also increased, with residential loans rising to 3.7% from 3.6% in April and commercial loans up to 4.7% from 3.4%. The changes come amid repayment of large residential loans and economic challenges in the special administrative region.
〈RTHK News, July 8, 2024〉Secretary for Commerce and Economic Development Algernon Yau says there has been a gradual rebound in the local retail sector, with more stores opening across the city.
During an interview with RTHK on the second anniversary of the current government term, Yau was asked if there’s been a wave of shop closures in Hong Kong amid a drop in retail sales.
The commerce and economic development chief said that while the government does not have statistics on store closures, recent surveys have pointed to an improvement in retail occupancy rates.
He said figures indicated that the number of vacant stores dropped from 18.3 percent in the third quarter of 2020 to around 6.6 percent recently.
