This is the weekly news wrap, featuring the latest real estate stories from Hong Kong. Whether your interest lies in industrial, retail, office real estate or asset investments, we have got the news that matters, covered. 

Hong Kong Banks Hike Mortgage Rate, End Cheap Money Era

Reuters

Hong Kong’s top banks are hiking an important mortgage rate, piling pressure on borrowers and raising the risk of a slowdown in one of the world’s most expensive property markets. HSBC Holdings, Bank of China (Hong Kong), Hang Seng Bank and Standard Chartered said late on Wednesday they will raise new mortgage rates from August 13. 

Victor Li’s CK Asset Wins Tender for Hong Kong’s Most Expensive Rail Development

South China Morning Post

CK Asset Holdings, the property conglomerate chaired by Victor Li Tzar-kuoi, has won the tender for what could be Hong Kong’s most expensive railway development, requiring a total investment of up to HK$38 billion (US$4.8 billion) for the Wong Chuk Hang site. MTR Corp awarded the tender for phase three of the plot next to the Wong Chuk Hang MTR station on Thursday. 


Hong Kong Landowner Wharf Sees Core Profit Plunge by Two Thirds amid Falling Home Sales in Mainland China

South China Morning Post

Wharf Holdings, one of Hong Kong’s biggest landowners, reported a 66 per cent drop in core profit, amid a slowdown in property sales that looks set to continue as Hong Kong and mainland China push ahead with market cooling measures. Wharf’s chairman and managing director Ng Tin Hoi told a post-earnings press conference that the company had struggled to meet its mainland sales targets and that the market outlook for the second half remained challenging.


Trade War Puts Dent in Beijing’s Plan to Turn Hong Kong and Surrounding Cities into New Silicon Valley

South China Morning Post

The US-China trade war has complicated Beijing’s ambitious plan to transform 11 cities in the “Greater Bay Area” into the Chinese version of the “Silicon Valley”, the Post has learned. A source with knowledge of the matter said the announcement was delayed so as to avoid being further targeted by the United States, taking lessons from its “Made in China 2025” plan, which Washington treats as an all-out challenge.


HK to Lead Greater Bay Development'

The Standard

Financial Secretary Paul Chan Mo-po said Hong Kong's uniqueness will not disappear when it integrates with the Greater Bay Area. He said his recent visit to Guangzhou, Foshan and Jiangmen reinforced his belief that the SAR can play a special role in the area's development. Writing in his weekly blog, the finance chief said several tech companies he spoke with admired Hong Kong's free and open market, as well as the adoption of internationally recognized practices.

 

Seattle Housing Market is under Pressure as Chinese Buying 'Dries Up'

CNBC

In the last two years, both Chinese investors and families hoping to send their kids to American universities have fueled demand for housing in Seattle, which has long enjoyed a strong Asian culture. But the Chinese yuan's recent fall in value against the U.S. dollar has made housing more expensive for Chinese buyers. Analysts said Seattle could see the opposite of the buying frenzy it had two years ago.

 

  

 

CBRE in the News

Trade Tensions Could Slash H2 Commercial and Industrial Property Deals by 12%

Hong Kong Business

Features CBRE Research


Six Units of The Center Up for Sale

Ming Pao (Chinese only)

Features Daniel Mok, Director, Capital Markets, CBRE Hong Kong