The International Finance Centre, a famous commercial complex located in the centre of Hong Kong’s Central District, is essential to Henderson Land’s history.

The International Finance Centre, which consists of two skyscrapers, is evidence of the business’ dedication to excellence and innovation in the built environment. In addition to changing Hong Kong’s skyline, this flagship project has strengthened Henderson Land’s standing as a major force in the international real estate market.

Henderson Land has made significant contributions to the residential sector in addition to its commercial endeavours. The business has played a significant role in creating high-quality housing projects that meet the various housing needs of the people living in Hong Kong. These developments frequently incorporate cutting-edge amenities, eco-friendly design principles, and community-focused elements, demonstrating Henderson Land’s adaptability to changing market conditions.

Henderson Land has demonstrated strong financial performance by skilfully navigating the intricacies of the real estate market and economic fluctuations. The company has a global presence that goes beyond Hong Kong as a result of its deliberate international market expansion, which highlights its resilience and strength on a large scale.

Recognising the importance of sustainable development, Henderson Land places a strong emphasis on incorporating green and energy-efficient elements into its projects. This company’s dedication to environmentally responsible practices is reflected in its commitment to sustainability, which sets a standard for the industry and aligns with global trends.

Henderson Land actively participates in the community through corporate social responsibility and charitable endeavours in addition to its commercial activities. The business donates to numerous charitable causes, educational initiatives, and community development projects because it understands its place in the larger social context. This commitment to community well-being strengthens Henderson Land’s positive reputation and fosters a sense of shared responsibility.

Henderson Land Development Company Limited is a pillar of the real estate sector, defined by its iconic projects, visionary leadership, and dedication to sustainability, and involvement in the community. Henderson Land’s legacy is deeply ingrained in the architectural fabric of Hong Kong, reflecting its enduring impact on the city’s urban development, as it continues to navigate the constantly changing real estate landscape.

The brain behind this successful venture is 95-year-old Lee Shau-kee, Business magnate and investor. He is the founder of Henderson Land Development Company Limited.

Who is Lee Shau-kee?
• Lee Shau-kee was born on 7 March 1928 in Shunde, Guangdong, China
• He was the Chairman and Managing Director of the Company since 1976
• In 2019, Lee Shau-kee stepped down from the post in favour of two of his sons, Peter and Martin Lee
• He now retains a role as an executive director
• The real estate giant is one of the main sponsors of the ‘HKICC Lee Shau Kee School of Creativity’, having donated more than HK$20 million through the Lee Shau Kee Foundation
• Lee Shau-kee was awarded the honorary degree of Doctor of Social Science by the Chinese University
• In July 2021, his wealth is estimated to be USD 33.0 billion, making him the second wealthiest man in Hong Kong (behind Li Ka-shing), and the 43rd richest in the world
• Since 2006, Lee Shau-kee has accrued profits from his holdings of Mainland-controlled stocks
• Lee Shau-kee is also known as ‘Uncle Four,’ one of the very few fourth-born children in the world to have become a multi-billionaire

Henderson Faces Cost Quandary

As per a Lands Tribunal ruling, Hong Kong developer Henderson Land has been granted permission to sell one of the two blocks in the renowned Champagne Court, located in the centre of the Tsim Sha Tsui district of Hong Kong, on a compulsory basis.

The developer plans to renovate the ageing property into a 23-story commercial building with retail stores, offices, and a restaurant on the top floor. These plans were submitted with the application for the compulsory sale.

The developer is unsure of the advantages of going ahead and buying the remaining portions of a property that was valued at HK$1.73 billion (USD 220 million) in October 2022, though, given the continuous decline in Hong Kong commercial real estate values.

Over the following year, costs have increased and valuations have fallen.

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It is reported that the price index in February remained unchanged from the record in the previous year. The pandemic has affected Hong Kong’s real estate sector among other domestic sectors. It brought a standstill to all business activities and human traffic on the streets including protestors. 

Thomas Lam, an executive director of Knight Frank predicted that home prices would fall 10 percent for 2020, but the property market would stabilise during the second half of the year, media reports said. That said, transaction volume is expected to drop between 20 percent and 30 percent in the next two months, media reports said. 

In fact, homeowners of luxury apartments in Hong Kong have slashed rents by up to 20 percent. Hong Kong is known for its expensive property market. 

Last year, China, Hong Kong and Singapore’s combined institutional investments accounted for 28 percent of India’s total real estate investments. In the second half of last year, the special administrative region’s property market was affected by anti-government protests.

However, potential property buyers and agents do not expect Hong Kong’s market prices to crash despite the pandemic. This is mainly because of growing demand and low interest rates, media reports said. 

The post Hong Kong home prices see biggest drop since November 2018 appeared first on International Finance.

Rents for commercial properties in prime areas in Hong Kong such as Central, Causeway Bay, Tsim Sha Tsui, and Mong Kok will decline by 15 percent or more in 2020, the biggest drop since 2013.

Helen Mak, a senior director at Knight Frank told the media, “For foreign and local tenants, of course, they have to be cautious when deciding whether to open stores now, which weighs on rents.”

This follows the government’s announcement that retail sales by value contracted by a record 24.3 percent in October, year-on-year.

Currently, Hong Kong maintains the position of the world’s most expensive retail rental market. However, with the projected drop in rents, experts believe Hong Kong might lose its status.

According to media reports, street shops in Causeway Bay charged the highest rents in the world in the third quarter, at $2,544 per square foot a year.

Due to the political unrest in the former British colony, home transactions have dropped by more than half after peaking in May. Data from the Hong Kong Land Registry revealed that 3,447 transactions were completed in September and around 4,000 in October, which is way below from the average monthly sales in the last five years.

Home prices in Hong Kong also dropped for a fifth consecutive month in October. While prices dropped by 1.3 percent in October, it dropped by 1.7 percent in September. Knight Frank expects home prices to further decline in December.

The post Hong Kong to see sharp fall in commercial property rent in 2020 appeared first on International Finance.

Hong Kong, which was ranked 14 last year in the list, slips to the bottom of the list as citizens continue to protest the Hong Kong extradition bill and also the fear of losing its autonomy.

Singapore’s property market has largely benefited from the political unrest in Hong Kong as real estate investors look elsewhere to invest their money.

Urban Land Institute CEO Ed Walter told the media, “A lot of theory in investing is less about what was, versus what is or what is going to be.”

The report also revealed that property deals worth $4.9 billion were carried out in Singapore during the first half of the year, a 73 percent increase year-on-year. Singapore is also one of the few property markets in the region where real estate transactions significantly increased during the period.

In 2017, Singapore was ranked second in the list which includes 22 other global cities such as Tokyo, Sydney, and Bangalore.

Reportedly, real estate investment sales in Singapore doubled from $6.7 billion in the second quarter to $16.74 billion in the third quarter of 2019. The real estate investment sale in the third quarter was 49 percent higher than the volume of the first and second quarters combined.

The largest real estate transaction carried out in Singapore so far involved Allianz Real Estate and Gaw Capital Partners acquiring Duo Tower and Galleria for $1.58 billion.

The post Singapore becomes Asia’s top property market, beats HK appeared first on International Finance.

Another factor that contributed to the fall in home prices in Hong Kong is the growing social unrest in Hong Kong due to the mass street demonstrations. According to reports, two-month-long Hong Kong protests had an adverse effect on the city’s real estate market in terms of sales and market appeal to investors.

However, according to some realtors, protests will have only a short-term impact on the housing market, which will be supported by increased demand, scarcity of land and expectations to lower interest rates.

According to Denis Ma, head of research at Jones Lang LaSalle, due to the economic uncertainty of the two nation’s ongoing tariff battle, Hong Kong’s commercial and office leasing market is seeing a slowdown in Chinese demand.

Prices for private homes in Hong Kong dropped 0.8 percent in June month-on-month. Also, residential sales volume plunged 43.6 percent in June to a four-month low.

“Judging from the recent social movement and market condition, the price index is within expectation. The index may further correct downward in the next one, two months,” Thomas Lam, executive director of Knight Frank told the media.

He expects another 5 percent drop in the second half.

According to the transport and housing bureau, with 10,000 unsold homes at the end of the second quarter, Hong Kong’s unsold residential property soared to its highest in more than a decade.

Over the past decade, low interest rates, limited housing supply and huge investments from Chinese buyers have pushed housing up more than 200 percent in Hong Kong.

Earlier in July, it was reported that many potential buyers have backed out from deals to buy homes with an estimated worth of $8.9 million.

According to reports, the number of deals fell from 35 major private estates to 23 per week in Hong Kong.

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