Real Estate Bull Run Continues

The rendering of The Arles in Fo Tan, New Territories

There are some people in Hong Kong who are really flush with cash.

Today someone bought the entire floor, or eight units of a new development called The Arles in Fo Tan, New Territories for HK$100 million. 

What will the owner do with them? Make them into one giant flat?! Or rent them out? Or buy them for eight family members? 

Prices of the flats ranged from HK$6.17 million to HK$23.5 million for 228 sq ft to 947 sq ft. 

Three rounds of flat-selling have been held so far

In Fo Tan. 

An industrial area.

In total 116 flats out of 272 were sold, with a 15 percent discount to HK$20,905 per square foot.

Apparently buyers came out with confidence on hearing the news the border with China may reopen in February, and Chief Executive Carrie Lam Cheng Yuet-ngor's big plans for the Northern Metropolis near the border, where it is expected 2.5 million people may live there in 20 years. 

The metropolis will include Tin Shui Wai, Yuen Long, Sheung Shui and Fanling.

"Since the stock market has recently been less volatile, the overall sentiment towards the property market is pretty good," Midland Realty's chief executive of the residential division Sammy Po Siu-ming said. He indicated more buyers are entering the market after Lam's policy address about the Northern Metropolis.

Buyers are bullish on the Northern Metropolis

So these buyers are bullish on Hong Kong, particularly the New Territories, but the prices are breathtaking.

Lam's Plan to Develop New Territories North into Metropolis

Lam enters Legislative Council to deliver her policy address

 

Chief Executive Carrie Lam Cheng Yuet-ngor has revealed her ambitious plan to tackle housing -- develop New Territories North, the area close to the border with Shenzhen. That will mean the rapid development (and gentrification) or districts like Tin Shui Wai, Yuen Long, Fanling and Sheung Shui. 

That will mean having to deal with the thorny issue of indigenous villagers having those small three-storey houses dotted all over the New Territories, and developing brown sites that are covered with shipping containers.

Across the border is developed Shenzhen

By combining the above mentioned districts together and developing the area could yield 515,000 new residential flats and become a crucial link with the Greater Bay Area.

"With as many as seven land-based boundary control points, the Northern Metropolis will be the most important area in Hong Kong that facilitates our development integration with Shenzhen and connection with the Greater Bay Area," she said during her policy address today.

"Such an integration can create the development capacity to meet the needs of our economy and people's livelihoods, and a quality environment for sustainable development," Lam said. "All these will help us better respond to the new opportunities brought about by deepened cooperation between Hong Kong and Shenzhen."

Time to tackle indigenous villager houses

Lam is still pitching her "Lantau Tomorrow Vision" of building an entire island from scratch off of Lantau, but the Northern Metropolis makes more sense and would be less ecologically damaging.

However, will the market worry about property prices falling? There are rumours house prices will drop this month following Lam's announcement. 

But those owning land in Tin Shui Wai, Yuen Long, Fanling and Sheung Shui will be raking it in as their property will be demand. 

 

Carrie Lam on Repeat

Carrie Lam reappears after two weeks to repeat what she said before...

This morning Chief Executive Carrie Lam Cheng Yuet-ngor came out of hiding for the past two weeks and held a press conference and said -- nothing new.

Peaceful general strike rallies were held in areas like Admiralty

She claimed the protesters were now calling for revolution and to liberate Hong Kong. "These actions are beyond their original political demands. These actions challenged national sovereignty. They threatened 'one country, two systems' and would destroy the city's prosperity and stability."

This is not true. The protesters continue to reiterate their five demands, including that Lam withdraw the extradition bill and set up an independent inquiry on how police have handled protesters.

In English Lam added: "Such extensive disruptions in the name of certain demands or uncooperative movement have seriously undermined Hong Kong's law and order and are pushing our city, the city we all love and many of us helped to build, to the verge of a very dangerous situation."

In addition, she said she would not resign, and Lam did not present any solutions moving forward, basically maintaining the same stance as before, painting the protesters as extremists and standing by the police force in maintaining what she claimed was law and order.

Instructions for tear gas says: "Do not fire directly at persons"

Again the entire population of Hong Kong was angry that she did not offer any new ideas or solutions, that it was just as well a lot of people went on a general strike today.

And at first it was relatively peaceful. There were disruptions on the MTR and for the most part people were patient, though some commuters were really angry. The same could be said at the airport where some 250 flights were cancelled. Then at 1pm there were some seven locations for people to gather in Hong Kong to demonstrate their frustration to the government.

There were massive turnouts in Admiralty and Sha Tin, but soon attention was turned to Tin Shui Wai, Tai Po, Kwun Tong, Causeway Bay and Tseung Kwan O. Police seemed to have no qualms firing endless rounds of tear gas at protesters in four different districts.

When reporters picked up the discharged tear gas tubes from the United States, the directions explicitly say that they should not be shot AT people but ABOVE them, which is not at all what the police have been doing these past two months.

A lot of tear gas was fired on Tin Shui Wai today

And the police claimed today they have fired 1,000 rounds of tear gas since June 9. Is that for sure? It could be many more than that. Meanwhile over 500 people have been arrested so far ranging in ages from 14 to 76.

Then tonight in North Point, men with long bamboo sticks began attacking protesters and a fight ensured on the street. Where were the police again? The men with sticks were outnumbered and eventually retreated, but not without shocking images of them hitting people with rage.

See Carrie, look what you've done! You didn't offer any solutions so the violence has further escalated.

Watching this all unfold all day was shocking and scary. But it's really all her fault and Beijing offers no other way out except to continue to fire tear gas and pepper spray at people, protesters and innocent victims alike.

A violent mob scene in North Point this evening

Most people are still on the side of the protesters because they see the inaction of the government as completely unacceptable. So the rage continues.

When Lam was asked at the press conference if she would resign, she replied: 

"In such a dangerous situation, when we're talking about Hong Kong's future and stability, when the well-being of 7 million people faces huge challenges, this is no longer about my personal honour. My colleagues and I have the responsibility to stand fast to our positions. And we hope to restore social order as early as possible."

So the answer is no. Reporters tried to ask more questions of accountability, but she and eight of her ministers left. So much for claiming to listen to people's concerns.

Does this mean Lam goes back in hiding for another two weeks? Some sarcastically say that she's been on strike for two weeks...

Just after 6pm, this is what the Causeway Bay MTR looked like

This evening I had dinner plans and cancelled them by late afternoon. And then I went home early, and saw all the stores had shut early, leaving the usually bustling shopping district of Causeway Bay very quiet. Even the MTR station had hardly anyone.

Is this how you want to kill Hong Kong's economy, Carrie? The Hang Seng Index lost 777 points. Ironically it's the same number of votes that got you this chief executive job.

Time to show some leadership. Carrie? Carrie?

Hong Kong's New Leader

Pre-ordained Carrie Lam is now confirmed as Hong Kong's next leader

It was expected from the beginning, but it is now confirmed Carrie Lam Cheng Yuet-ngor is Hong Kong's next chief executive with 777 votes -- far more than her predecessor and former boss Leung Chun-ying with 689.

John Tsang Chun-wah, the public's favourite, only got over 365 votes, while Woo Kwok-hing had 21.

Xinhua News Agency already reported Lam's win minutes after the initial vote count, since she surpassed the 600 votes very easily.

When news that Lam had won had won by a far margin was announced, there were cheers and jeers from the audience in the Hong Kong Convention and Exhibition Centre.

Obviously the pro-establishment (pro-business) are pleased to vote in the person they believe will help them continue to prosper in the city, while those related to the pan-democratic camp shouted, "I want universal suffrage!" as this small-circle election is hardly democratic.

There are concerns now of how she will govern the city where she is highly unpopular, seen as a distant person who doesn't give the appearance of caring much for the poor, as she claimed she was too tired to visit Tin Shui Wai, a district known for its challenging social and economic issues.

When the official results were announced, there were whoops of joy from most of the audience. On stage, Lam looked teary-eyed, hugging Tsang a few times. Maybe he was saying, "Better you than me"?

In any event if the critics will have a go at her, at least they can use the number 7 -- it's slang for flaccid penis... and she got 777 of them...

Eddie Chu Hoi-dick's Fears Assauged for Now

Eddie Chu (in white shirt) with pro-democracy politicians at the police station

Eddie Chu Hoi-dick may be "king of the votes" for garnering over 84,000 votes in Sunday's Legislative Council election, but now the 38-year-old is fearing for his life after "imminent" death threats made against him and his family.

They are so terrified, that he, his wife and daughter haven't been home since Sunday.

Chu was accompanied to the police station with his lawyer

This afternoon, Chu along with Paul Zimmerman, Nathan Law Kwun-chung, and "Long Hair" Leung Kwok-hung went to police headquarters in Wan Chai to file a report. He also sent letters to Chief Executive Leung Chun-ying and Police Commissioner Stephen Lo Wai-chung, seeking assistance.

His request was granted and now Chu and his family are under round-the-clock protection and they are staying in a secret location. His daughter will not be going to school for the time being.

"I have faced threats against myself and my family since I announced my bid for Legco," Chu told the media. "They have escalated into an imminent death threat since I was elected."

Chu is a longtime a grassroots environmental activist, and during his campaign he may have upset some people on issues such as changing the land use in the New Territories and an illegal dumping case in Tin Shui Wai.

Chu (holding bouquet) with his supporters on Monday

He is also promising to take on the powerful Heung Yee Kuk, a statutory advisory body that is supposed to represent villagers' interests, but is widely accused of corruption and anti-environmental practices.

In his election platform, Chu campaigned not only for Hong Kong self determination, but also animal rights, and strong opposition to the "South Lantau Metropolis", that the government wants to develop into a residential and business enclave that could have a massive impact on the environment.

Chu is one extremely brave man and hopefully police protection will help him breathe a bit easier.

But he should also remember over 84,000 people support him and hopefully strength in numbers will help him stand down those making dangerous threats.

Hong Kong is ruled by rule of law, not intimidation.

The Waiting Game Begins

Potential buyers check out Upper East but many have given up down payments

You know the economy is not looking good when potential home buyers are not purchasing homes -- because they think prices will go down even further.

Some buyers have even walked away from deals even though they have put down deposits.

"Developers that require purchasers to put down a small initial down payment will be hit the hardest," said Alvin Cheung Chi-wai, an associate director at Prudential Brokerage. He added buyers would rather cut their losses by forfeiting their deposits if they believe an economic slump is coming.

The media has reported at least 30 such cases so far this month, 11 of which were at Kowloon Development's Upper East project in Hung Hom. Five cancellations were made at Cheung Kong Property Holdings' Beaumont in Tsueng Kwan O, and four at The Aspen Crest in Diamond Hill developed by Far East Consortium International.

One buyer signed an agreement for two flats at Upper East for a total of HK$11.8 million, but gave up the HK$2.55 million initial down payment.

That's a lot of dough, rich or not.

That project has the most number of defaults so far because it required potential buyers to put down payments of just 5 percent. Because of this deal, including a 14 percent discount, it sold 340 units, 40 percent of which were bought by investors this month. Down payments for the cheapest flats -- 194 square feet -- were just HK$150,000.

Kingswood Villas in Tin Shui Wai

The market for luxury and secondary flats was also slow, with sellers cutting prices to entice buyers. A 806 sq ft flat at Pacific Palisades in North Point Hill sold for HK$14.5 million, HK$1 million less than the original asking price.

"This is the first deal for North Point Hill so far this month," said Terry Chan, associate director at Centaline Property Agency.

In Tin Shui Wai, a 546 sq ft flat in Kingswood Villas, the city's most active housing estate in terms of turnover, changed hands for HK$3.92 million, the first unit to be sold for less than HK$4 million in the past few years.

Real estate agents report the secondary market has plunged to a 20-year low.

This is good news for first-time home buyers, but it's a waiting game now, trying to figure out how low prices will go... who's in?