BentallGreenOak LOFTER co-operation
Transaction volume of luxury homes could rebound by 30 to 40 per cent in the second half of 2022 on resumption of normal business
City has approved 13 projects for presale this year through late March, with luxury projects accounting for eight of them
This number is also 57.8% lower compared to the property sales in March 2021, which recorded 9,067 property sales and purchase agreements for all building units.
Mass residential prices are seen to drop around 5% this year on the back of the dampened sentiment in the first quarter (Q1) of 2022, real estate services firm, JLL Hong Kong, said.
It then downgraded its forecast for 2022 mass residential market capital values to decrease 5% compared to its previous forecast that it would rise 0% to 5%.
“We are pleased to be partnering with BentallGreenOak and Schroders Capital on this strategic real estate acquisition in one of the most core commercial area in Hong Kong,” said Lofter founder and chairperson Carol Chow. “The partnership signifies an excellent synergy bringing together the global horizons of top-tier international private equity and asset management firms and deep local market knowledge and expertise of a reputable local developer.”
Lofter and its partners are acquiring the aging properties as Hong Kong’s pandemic restrictions have choked off the flow of visitors which had made Tsim Sha Tsui a shopping mecca. Hong Kong retail sales fell for a second consecutive month in March, according to government figures, and research by Savills shows that rents for shops and mall spaces fell by an average of 5 percent in the city during the first quarter.
Retail Value Emphasised
Before redeveloping the 9,650 square foot commercial site, which is currently occupied by a golf shop and other retail establishments, the three partners will have to gain full control of the buildings, with the announced purchase providing them with majority ownership of the properties.
carol Lofter Group
Lofter founder Carol Chow
The count of property sales and purchase agreements for all building units in Hong Kong was at 3,828 in March, down by 4.3% from February this year, a recent Land Registry data showed.
In a statement, JLL’s Hong Kong residential sales market monitor revealed that the current mass residential prices went down by 3.2% quarter-on-quarter (QoQ) in Q1 2022 which was driven by the fifth wave of COVID-19.
Figures from Land Registry also indicated that the total consideration for such agreements went down 3.4% from February to $34.8b in March, and a 55.4% year-on-year decrease was recorded.