HK/China Property:HK/China Property Evening

GDP growth target for China in 2016 ranges from 6.5-7.0%

    Mr. Xu Zhaoshi, the director of the NDRC, said on Wednesday (3 Feb) thatdownside pressure on China’s economy still exists, and this pressure isexpanding to a certain extent. He said the targeted range for China’s GDPgrowth in 2016 is 6.5-7.0%. He added that the downside pressure on theeconomy in the first quarter of the year will be higher, but that the governmenthas prepared many policy tools to ensure the economy operates within areasonable range. (Hexun)Government will purchase inventory units for social housingDuring the press conference held on the afternoon of 3 Feb, Mr. Xu Zhaoshi,director of the NDRC, said inventory clearance in the property market is stillthe focus of the government in 2016, especially in Tier-3/4 cities. He said thatlowering the downpayment requirement in cities without HPR is good news forinventory clearance. In addition, the government encourages new citizens topurchase house units and supports the allocation of social housing bymonetary compensation. Moreover, the government will purchase inventoryunits in the market and allocate these houses to households in shanty towns.(Hexun)

    Expert says high inventory is hindering recovery in the property market

    Mr. Zhang Jingwei, a researcher from The Charhar Institute, a leading thinktankin China, said the property market is yet to recover. He said that, despitethere being different definitions of inventory, a conservative estimation of theinventory period is about 6-7 years, which does not include units underconstruction. He added that, although a series of supportive policies have beenlaunched, the inventory level in Tier-3/4 cites is still high. This is attributable tothe prolonged fast development in the property market in the past. Hesupports the loosening polices and also thinks the government could considermore measures. (CFI)

    Site in Kowloon sold at below-expected price to Vanke

    The Lands Department announced that the tender for the residential site at thejunction of Fuk Wing Street, Camp Street and Fuk Wa Street, Sham Shui Po,Kowloon (New Kowloon Inland Lot No. 6534) has been awarded to Vanke on a50-year land grant at a premium of $1.306bn, or an average value ofHK$4,249psf, close to the lower end of the market valuation. The maximumGFA for private residential purposes is 23,797 sqm (256,000 sf). (Apple Daily)

    Market participants cut valuation on Tai Po residential site by 20%

    Against the backdrop of falling property prices, slow sales momentum and softsentiment triggered by the failed land tenders, market participants have furthercut the valuation on the residential site in Lai Chi Shan, Tai Po, which remainedunder juridical review. According to Centaline, taking into consideration theweak market sentiment, ample future land supply and the difficulties in theland planning for this residential site, they expect developers to turn cautiousin the land tender. They expect to see 5-6 developers submitting bids, with thesite now valued 20% lower, at HK$3.689bn, or an average value ofHK$3,200psf. In addition, they indicated that developers will likely focus moreon the quality sites in urban districts. (Apple Daily)