hong kong residential real estate market report - 2q 2011

c o ll i e r s i n t e r n at i o n a l | H o n G Ko n G

www.colliers.com/hongkong

hong kong residentialmarket

research & forecast report

Buying spree slowsdue to rising mortgage rates, further lowering in loan-to-value (ltV) ratio, and growing concerns over the re-launch of home ownership scheme (hos) flats, sales activity of the hong kong residential market experienced further slowdown in 2Q 2011.

in the luxury segment, the slowdown in sales activity was yet to be fully reflected in the market. in the top-end residential market (referring to sales transaction of properties at over hk$100 million), the number of sales transactions recorded a strong growth of 50% QoQ over the same period. this indicated that the super-luxury residential segment, with properties sold at over hk$100 million, were less cost-sensitive than the overall market. one of the driving forces for the upbeat luxury residential market was attributed to the strong demand from wealthy mainland Chinese buyers, who represent about 40% of total buyers in the top-end residential segment.

during 2Q 2011, prospective property buyers faced increasing difficulties in mortgage financing, attributable to higher down payments. on 10th June 2011, the hong kong monetary authority (hkma) issued new guidelines to banks in further lowering the ltV ratio. Certainly, this would pose a consolidation on the number of residential sales transactions, in the hope of slowing the prevailing upward price spiral.

despite a mismatch between corporate housing budgets and landlord’s asking rents, landlords remained firm in rental negotiations, and some were aggressive in rising asking rents. tenants who could not justify the widening gap between budgets and rents turned to downgrading flat sizes, or moving away from the traditional luxury residential areas to other districts.

the demand-supply imbalance, coupled with inflationary pressure, continued to drive rents upwards, with the average luxury residential rents rising by 4.15% QoQ, to hk47.30 per sq ft per month as of may 2011, after rising by 3.62% QoQ in the previous quarter.

looking ahead, both residential sales transaction volume and prices are anticipated to slow in the near term on the back of further lowering in ltV ratio and tightening measures imposed by local banks. interest rate hikes in late 2011 or 1Q 2012 will potentially lead to further consolidation in the residential market. however, luxury residential prices do not expect a dramatic decline, given the tight residential supply situation.

market indicators forecast

2Q 2011 | THe knowledge

overall performance

new supply

tenant demand

incentives

rents

capital values

yields

p. 2 | colliers international

hong kong | 2Q 2011 | residenTial

sales Market

Source: Hong Kong Monetary Authority

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slowing sales activitydue to rising mortgage rates, further lowering in loan-to-value (ltV) ratio, and growing concerns over the re-launch of home ownership scheme (hos) flats, sales activity of the hong kong residential market experienced further slowdown in 2Q 2011.

in the luxury segment, the slowdown in sales activity was yet to be fully reflected in the market. during the three-month period ending may 2011, the number of luxury residential sales transactions in the three traditional luxury districts of the Peak, mid-levels and south side, that sold for over hk$20 million, increased by 11% QoQ. in the top-end residential market (referring to sales transaction of properties at over hk$100 million), the number of sales transactions recorded a strong growth of 50% QoQ over the same period. this indicated that the super-luxury residential segment, with properties sold at over hk$100 million, were less cost-sensitive than the overall market. one of the driving forces for the upbeat luxury residential market was attributed to the strong demand from wealthy mainland Chinese buyers, who represent about 40% of total buyers in the top-end residential segment.

during 2Q 2011, prospective property buyers faced increasing difficulties in mortgage financing, attributable to higher down payments. on 10th June 2011, the hong kong monetary authority (hkma) issued new guidelines to banks in further lowering the ltV ratio. Certainly, this would pose a consolidation on the number of residential sales transactions, in the hope of slowing the prevailing upward price spiral. in anticipation of higher price volatility, some banks started to adopt a more stringent stress test to gauge borrowers’ ability to survive a potential outflow of deposits, and valuations that were more conservative, resulting in some cases that saw valuations at 10% to 15% below asking prices. this in turn would potentially affect the growth in residential sales activity, especially from end-user demand.

in terms of financing, major local banks raised their mortgage rates based on the hong kong interbank offered rates (hiBor). For example, hsBC announced raising its hiBor-based mortgage interest rate (h) from h plus 1.0% - 1.5% to h plus 1.5% - 2.0%, while the maximum mortgage rate is set at Prime (P) minus 2.65%. according to the hong kong monetary authority, one-month hiBor averaged at 0.23%. despite the rate increase, the hiBor-based mortgage interest rates were still substantially cheaper than those prime rate-based rates, the lowest of which was 1.7%. hiBor-based mortgages account for 90% of the overall mortgage market.


colliers international | p. 3


Source: Hong Kong Monetary Authority

further lowering ltv ratioto strengthen risk management in residential mortgage lending business, the hong kong monetary authority (hkma) issued new guidelines to banks on lowering ltV ratio, with immediate effect from 10th June 2011. the new measures reflected the government’s determination to moderate property prices in view of the housing boom cycle that continues to evolve. hkma announced that:

(i) the maximum ltV ratio for residential properties valued hk$10 million or above will be lowered to 50%;

(ii) the maximum ltV ratio for residential properties valued between hk$7 million and hk$10 million will be lowered to 60%, with the maximum loan amount capped at hk$5 million.

(iii) the maximum ltV ratio for residential properties valued below hk$7 million will be 70%, with the maximum loan amount capped at hk$4.2 million.

at the same time, hong kong mortgage Corporation limited (hkmC) announced lowering of the cap value of property under the mortgage insurance Programme (miP) from hk$6.8 million to hk$6 million. as a result, for mortgage loans with miP coverage with the 70% ltV threshold, the maximum loan amount will be reduced from hk$6.12 million to hk$5.4 million. For mortgage loans with miP coverage within 60% ltV threshold, the maximum loan amount will be reduced from hk$6 million to hk$5 million.

the lowering in ltV ratios introduced by hkma and hkmC will in turn affect growth in residential sales activity, especially that from end-user demand, in the hope of slowing the prevailing upward price spiral.

lowering ltv ratio targeting non-local Buyershkma put new limits on home mortgages not only for local property buyers, but also foreign investors. according to hkma,

(i) if the principal income of the mortgage loan applicant is derived outside hong kong, the applicable maximum ltV ratio will be lowered by at least 10 percentage points regardless of property types or values;

(ii) the maximum ltV ratio for properties under the net worth-based mortgage will be lowered from 50% to 40%.

in addition, the miP will not be available to applicants whose principal income is not derived from hong kong.

Further lowering in ltV ratios and the unavailability of miP to non-local borrowers are not expected to slow the buying spree, as cash-rich mainland Chinese investors, who are blamed for driving up hong kong’s home prices, do not need mortgages. the demand for credit in hong kong had been boosted by higher interest rates in mainland, as Beijing tightens monetary policy to tackle inflation, particularly rising food and property prices. the tightening liquidity in mainland China, coupled with the expectation of higher interest rates in the U.s., will lead to an outflow of deposits in hong kong that will pose a downside on residential price growth.

ltv ratio for residential properties ltv ratio for residential propertiesas of June 2011 as of novemBer 2010

transaction ltv transaction ltv

hk$10 m or above 50% hk$12 m or above 50%

hk$7-10 m 60% hk$8-12 m 60% max. loan amount: hk$5 m max. loan amount: hk$6 m

Below hk$7 m 70% Below hk$7 m 70% max. loan amount: hk$4.2 m max. loan amount: hk$4.8 m



Source: Colliers

Source: Colliers

luxury residential prices (By suB-markets)

district 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 2Q 2011 (% QoQ)

the Peak $25,063 $26,875 $28,050 $29,313 $30,938 $32,413 4.8%

mid-levels $11,443 $11,803 $12,000 $12,725 $13,188 $13,663 3.6%

south side $17,338 $17,713 $18,613 $19,288 $19,538 $19,925 2.0%

overall $16,058 $16,783 $17,391 $18,189 $18,806 $19,520 3.8%

supported by the tight luxury residential supply, the overall luxury residential prices edged up further by 3.8 % QoQ, to hk$19,520 per sq ft, as of may 2011. this had already surpassed the previous peak in mid-2008 by 30%, in which residential properties on the Peak displayed the strongest growth of 49%.

the hong kong residential market had been in a robust trend, with houses or individual residential developments registering record high levels. one of the driving forces for the robust luxury residential price growth was attributed to the strong demand from wealthy mainland Chinese buyers, who represented about 40% of total buyers in the top-end luxury residential segment.

Prominent transactions for 2Q 2011 were highlighted by the sale of an 8,302-sq ft house at no. 10 Pollock’s Path for hk$800 million, achieved the highest global unit price of hk$96,362 per sq ft. the price shattered the previous record at no. 6 stanley Beach road, which sold in march 2011 for hk$328.8 million, or a unit price of hk$62,900 per sq ft. however, the record price transaction does not fully reflect the property market outlook, being just a single one-off sales transaction.

record Breaking luxury prices



maJor residential sales transactions

month property gfa(sq ft)

price(hk$ m)

unit price(hk$ / sq ft)

THe Peak

mar-11 montebello, Unit 5 3,070 $72.00 $23,453apr-11 guildford Court, Block B, 5/F, Unit 6 2,478 $62.00 $25,020apr-11 mountain lodge, 7/F, Flat a 2,600 $60.60 $23,308apr-11 3 Plunkett's road, house a 7,000 $399.80 $57,114may-11 Cameron house, 7/F, Flat a 2,847 $99.88 $35,083

may-11 sunshine Villa, house 6 3,500 $138.89 $39,683may-11 no. 8 Pollock's Path 11,222 $580.00 $51,684may-11 skyhigh, house 10 8,302 $800.00 $96,362may-11 Black's link 38, house d 4,750 $230.00 $48,421

souTH side

mar-11 Celestial garden, 12/F, Flat B 2,363 $60.00 $25,391may-11 grand garden, Block 1, 16/F, Flat a 3,054 $69.00 $22,593mar-11 somerset, 8/F, Flat C 3,099 $90.00 $29,042mar-11 regalia Bay Phase 1, house C12 4,212 $73.28 $17,398mar-11 regalia Bay Phase 1, house a8 4,212 $76.80 $18,234mar-11 regalia Bay Phase 2, house C27 4,212 $70.00 $16,619mar-11 redhill Peninsula - Palm drive, house 53 2,901 $62.18 $21,434

mar-11 redhill Peninsula - Cedar drive, house 72 3,055 $73.00 $23,895mar-11 6 stanley Beach road, house 5 4,242 $212.50 $50,094mar-11 6 stanley Beach road, house 1 5,221 $328.80 $62,976mar-11 residence Bel-air Phase 5, Villa 6 9,254 $280.00 $30,257mar-11 residence Bel-air Phase 5, Villa 21 6,329 $170.88 $27,000apr-11 Woodgreen estate, g-01/F, Unit B11 2,219 $60.50 $27,265apr-11 Belgravia, 23/F, Flat a 2,390 $77.50 $32,427apr-11 Belgravia, 25/F, Flat B 2,790 $85.61 $30,685apr-11 56 repulse Bay road, house 2 3,185 $98.00 $30,769apr-11 grosvenor Place, 10/F 2,809 $83.00 $29,548apr-11 Fortuna Court, 10/F, Flat a 2,857 $88.80 $31,082apr-11 regalia Bay, Phase 1, house C6 4,212 $72.00 $17,094apr-11 hillgrove house, house B8 2,680 $54.50 $20,336apr-11 redhill Peninsula - Cedar drive, house 102 3,020 $83.50 $27,649apr-11 redhill Peninsula - Cedar drive, house 162 3,339 $88.00 $26,355apr-11 11-12 headland road, house 12B 10,023 $511.17 $51,000apr-11 56 repulse Bay road, house 47 4,286 $223.80 $52,217apr-11 Belgravia, 29-30/F, Flat B 3,845 $213.00 $55,397apr-11 rosecliff, house 1 3,209 $173.00 $53,911may-11 Belgravia, 28/F, Flat a 2,390 $81.20 $33,975may-11 Belgravia, 28/F, Flat B 2,790 $98.80 $35,412may-11 56 repulse Bay road, house 11 3,173 $117.28 $36,962may-11 le Palais, house 27 4,372 $110.00 $25,160may-11 shouson Peak, house 17C 4,074 $180.80 $44,379may-11 hong kong Parkview, tower 9, 5/F, Unit 59 2,628 $41.50 $15,791may-11 33 tung tau Wan road 6,700 $300.00 $44,776may-11 45 island road, house 6 2,705 $75.00 $27,726may-11 turtle Cove, house 2 4,002 $135.00 $33,733



maJor residential sales transactions

month property gfa(sq ft)

price(hk$ m)

unit price(hk$ / sq ft)

mid-levels

may-11 Clovelly Court, Block 1, 31/F, Flat a 2,809 $87.00 $30,972mar-11 Clovelly Court, Block 1, 3/F, Flat B 2,722 $58.00 $21,308mar-11 grenville house, Block a,B, 10/F, Flat B 3,400 $88.00 $25,882mar-11 estoril Court, Block 02, 11/F, Flat C 3,347 $55.00 $16,433mar-11 estoril Count, Block 01, 14/F, Flat a 3,347 $56.80 $16,970

mar-11 dynasty Court, tower 1, 27/F, Flat a 2,691 $76.80 $28,540apr-11 the albany, Block a, 23/F 2,549 $80.00 $31,385apr-11 trafalgar Court, 22/F, Flat a 3,008 $79.00 $26,263apr-11 evergreen Villa, Block C, 14/F, Unit 2 2,518 $52.50 $20,850apr-11 39 Conduit road, 66/F, Flat a 5,636 $360.70 $63,999apr-11 azura, 49/F, Flat a 1,665 $51.57 $30,973apr-11 azura, 50/F, Flat a 1,665 $52.70 $31,654may-11 47a stubbs road, 2/F, Flat a 2,400 $55.00 $22,917may-11 the albany, Block a, 19/F 2,549 $79.00 $30,993may-11 the mayfair, 28/F, Flat B 2,872 $91.80 $31,964may-11 Chantilly, 5/F, Flat B 3,600 $75.85 $21,071

may-11 Chantilly, 2/F, Flat B 3,600 $105.15 $29,208may-11 Century tower ii, 22/F 3,663 $128.00 $34,944

Source: Colliers



leasing Demand sustainaBle rising demandthe market continued to experience sustainable rising occupation demand in 2Q 2011. newcomers from the banking and finance sectors remained the key contributors to total expatriate arrivals. meanwhile, the increasing number of expatriate arrivals from non-finance companies, such as insurance, was observed. more expatriates in the middle management and senior levels started to arrive during 2Q 2011. this was partly due to expatriate families anticipating the opening of the school year after the summer holidays.

as of end-2Q 2011, budgets for staff at junior levels ranged from hk$20,000 to hk$60,000 per month, middle management levels with a budget from hk$60,000 to hk$150,000 per month, and senior executives from hk$150,000 and above per month.

rental level surpassed previous peakhousing continues to become less affordable for expatriates in hong kong. overall, luxury residential rents stood at a record high, surpassing the previous peak in mid-2008 by 2.2%, thanks to the relentless demand from expatriates for large-sized flats or houses. For example, rents on the Peak showed a remarkable growth of 14%, with rents averaging hk$66.6 per sq ft in may 2011.

lack of international schools do not drag rents down the society recently addressed the issue of the government’s failure to provide enough international school places on hong kong island. For the whole territory, the english schools Foundation apparently had a waiting list of about 5,000 candidates. the lack of access to quality international schools and limited school places, together with inflated housing rentals, had deterred senior employees of multinational firms from relocating to hong kong. instead, these people had been considering opportunities in other financial centres in asia, such as singapore. this would serve to de-emphasize hong kong and increase singapore’s regional importance.

the residential leasing market experienced longer negotiations in making deal commitments, as expatriate families faced difficulties in securing international school places for their children. they encountered long waiting lists at every school, and were being told to try for the 2012 academic year.

rather than jeopardize their children’s education, some opted to commute from overseas until the family had secured school places in hong kong. several expatriates had been taking longer lease terms in serviced apartments of six to twelve months or more, until their children were guaranteed a school place, before committing to leasing standard residential properties with the arrival of the remaining family members.

But so far the delay in confirmation to rent standard homes from this batch of expatriates did not slow overall demand for housing. demand is still outstripping supply. hong kong offers bright prospects for growth in businesses due to its geographical proximity to inland mainland cities. the continual inflow of expatriates, coupled with limited luxury residential properties available for lease, gave strong support to underpin the luxury residential leasing market.

Traditional luxury residential district Source: Colliers



rental trend

Source: Colliers

maJor residential lease transactions

month property districtgfa

(sq ft)rental

(hk$ / month)

unit rental(hk$ / sq ft /

month)

mar-11 Branksome grande mid-levels 3,030 126,000 41.58

may-11 dynasty Court mid-levels 2,691 121,000 44.96

mar-11 Burnside Villa south side 2,095 115,000 54.89

mar-11 stanley green south side 2,200 100,000 45.45

apr-11 Banoo Villa south side 2,176 106,000 48.71

may-11 Palm drive, redhill Peninsula south side 3,000 128,000 42.67

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Source: Colliers

Source: Colliers

(hk$ / sq ft / month)

luxury residential rentals (By suB-markets)

district 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 2Q 2011 (% QoQ)

the Peak $50.13 $52.15 $54.31 $56.96 $60.88 $66.55 9.3%

mid-levels $37.54 $39.97 $41.90 $43.20 $44.97 $45.79 1.8%

south side $40.81 $42.29 $44.18 $45.32 $46.55 $48.48 4.1%

overall $39.08 $40.93 $42.60 $43.83 $45.42 $47.30 4.1%

despite a mismatch between corporate housing budgets and landlord’s asking rents, landlords remained firm in rental negotiations, and some were aggressive in rising asking rents. tenants who could not justify the widening gap between budgets and rents turned to downgrading flat sizes, or moving away from the traditional luxury residential areas to other districts, such as kennedy town or Pokfulam.

the demand-supply imbalance, coupled with inflationary pressure, continued to drive rents upwards, with the average luxury residential rents rising by 4.15% QoQ, to hk47.30 per sq ft per month as of may 2011, after rising by 3.62% QoQ in the previous quarter.

With increasing arrivals of expatriates at middle management and senior levels, demand for houses and large-sized apartment units in the prestigious locations of hong kong island remained strong, given the reducing availability of properties for lease. For example, a 3,000-sq ft house in redhill Peninsula, tai tam, was leased for hk$128,000 per month (hk$42.67 per sq ft per month), and a 2,095 sq ft house in Burnside Villa, repulse Bay, with a monthly rental of hk$115,000 (hk$54.89 per sq ft per month).



serviced apartment Market

Source: Oakwood AsiaOakwood Apartments, Mid Levels

demand for serviced apartments remains upBeatleasing activities in the serviced apartment market remained upbeat in 2Q 2011. Confirmed arrivals were largely junior executives from the banking and finance industry, while the arrival of an increasing number of expatriate families was observed during the quarter.

serviced apartments continued to attract a batch of newly arrived expatriates for temporary stay before committing to a permanent residence or those in contract-based for short-term accommodation. the sustained rise in the number of expatriate arrivals at the entry level, largely from the banking and finance industries, prompted continuing strong demand for studio and one-bedroom units in 2Q 2011.

meanwhile, the serviced apartment market also saw sustainable demand for two-to-three-bedroom units with the arrivals of middle management level and senior expatriates. this was partly due to expatriate families anticipating the opening of school year after the summer holidays. Various tenants engaged to longer lease terms of six months or more before committing to traditional standard leases, as they wait for their children to be guaranteed a school place, before committing to lease standard residential properties with the arrival of the remaining family members.

short leases account for 78% our research statistics indicated that the number of short leases (i.e. with terms of six months or less) constituted 78% of the total during the three-month period ending may 2011, compared with the long-term average of 67%. meanwhile, the number of long leases (i.e. with terms of six months or longer) concluded during the same period accounted for 22% of the pie, below the long-term average of 33%.

in general, the sustained demand for serviced apartment units prompted the continual increase in serviced apartment rents in both centralised and decentralised locations, with average rent rising further by 2.4% QoQ as of may 2011.

studio/one-Bedroom suites remains the most favoured serviced apartments in the low-tier group (studio and one-bedroom unit), with rentals ranging from hk$10,000 to hk$20,000 per month, in non-central business districts (non-CBds), displayed the strongest growth of 5.4% QoQ as of may 2011. this was due to the positive spillover effect from CBds to non-CBds, supported by the continually rising number of junior executive arrivals from the banking and finance industry.



investment Market

Source: Colliers

Source: Lands Department, HKSAR Government

auction date

lot no. location maximum gfa (sq ft)

lump sum (hk$ million)

accommodation value (hk$/sq ft)

purchaser

27 apr kil 11184 ko shan road, hung hom, kowloon

153,516 $1,525 $9,934 nan Fung & Wing tai Properties

(50:50)12 may il 8963 stubbs road, hong kong 180,834 $4,490 $24,829 shkP12 may nkil 6498 Begonia road, Yau Yat

Chuen, kowloon36,780 $579 $15,742 China overseas

12 may lot no. 2086 in dd no. 105

ngau tam mei, Yuen long, new territories

101,095 $662 $6,548 Cheung kong

9 Jun il 8949 Borrett road, hong kong 435,292 $11,650 $26,764 Cheung kong9 Jun lot no. 2129

in dd no. 121Ping kwai road, Ping shan, Yuen long, new territories

65,401 $300 $4,587 Cheung kong

overall luxury residential yield of the three traditional luxury residential districts stayed relatively steady, increasing marginally from 2.72% in February 2011 to 2.73% at the end of may 2011.

regarding land sales, a total of six residential sites were sold in the government’s public land auction during 2Q 2011. two of the transacted sites are located in the traditional luxury residential districts of mid-levels.

despite all the media focus on the Borrett road site in the hope of breaking the all-time land price record, the site had brought disappointment to the market. the auctioned price was at the lower bound of market consensus, where the market was overly optimistic on estimates. Cheung kong snapped up the site for hk$11.65 billion, or an accommodation value of hk$26,764 per sq ft, which was 22.6% above the opening bid. this reflected that developers remained cautious towards market outlook, considering the underlying risks of an interest rate increase.

in addition, sun hung kai Properties snapped up the former lingnan College site on stubbs road for hk$4.49 billion, or an accommodation value of hk$24,829 per sq ft, the third highest accommodation value paid in land sale. this reflected developers’ eagerness to replenish their land banks.

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supply

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Source: Colliers

Further to the land sale of the stubbs road and Borrett road sites, both developments upon completion will bring a total of about 220 large and luxury residential units into the market in 2014-2015 at the earliest. this does not ease the current tight supply situation in the luxury residential market. as of may 2011, the overall luxury residential supply between 2011 and 2013 was 56% below its long-term average of 549 units.

proJected new supply of luxury residential units in 2011

development house* apartment* developer / owner no. of units

status

THe Peak

54 mount kellett road 3 @2-s - manhattan group 3 Under Construction

59 mount kellett road 1 @ 2-s - Wincord investment ltd 1 Under Construction

3 Black's link 2 @ 3-s - Fortune link development ltd 2 Under Construction

37 severn road 3 @ 3-s

4 @ 3-s

- shkP 7 Under Construction

souTH side

43 Beach road - 2 @ 3-s silver mark ltd 4 Completed in Feb 2011

4a south Bay road 1 @ 3-s - infinitive ltd 1 Under Construction

2 Belleview drive 1 @ 4-s - emperor group 1 Under Construction

18 Carmel road (stanley) 1 @ 4-s - horizon east investment ltd 1 Under Construction

mid-levels

9a-h seymour road, 5, 6, 6a, 7 & 7a Ying

Fai terrace

- 1 @ 48-s Wing tai asia 82 Under Construction

* No. of block @ No. of storey Source: Colliers



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Source: Colliers

Source: Colliers

Source: Colliers

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Source: Colliers

looking ahead, both residential sales transaction volume and prices are anticipated to slow in the near term on the back of further lowering in ltV ratio and tightening measures imposed by local banks. interest rate hikes in late 2011 or 1Q 2012 will potentially lead to further consolidation in the residential market. however, luxury residential prices do not expect a dramatic decline, given the tight residential supply situation. the overall luxury residential price growth will narrow to 5% over the next 12 months.

in the leasing market, the positive sign of the prevailing high level of occupancy rate of serviced apartment units for short-term stay (i.e. a lease term of below six months) indicates an optimistic outlook, since serviced apartment rental is the first stop for expatriates moving into the market. despite the rental upsurge, the increasing skills shortage of senior local executives for certain roles will lead to continuing hiring from overseas, on the back of a growing number of business opportunities with overseas companies, who prefer to set up their business in asia and hong kong. the sustained rising inflow of expatriates from various industry sectors, together with escalating inflationary pressure, will continue to fuel the leasing market. the average luxury residential rents expect a double-digit growth of 15% over the next 12 months. colliers international (hong kong)

limited:

suite 5701 Central Plaza18 harbour road Wanchaihong kongtel +852 2828 9888fax +852 2828 9899Company licence no: C-006052

simon loexecutive director | research & advisory | asiatel +852 2822 0511fax +852 2868 5275email [email protected]

512 offices in 61 countries on 6 continentsUnited states: 125Canada: 38latin america: 18asia Pacific: 214emea: 117

• $1.5 billion in annual revenue in 2010

• 979 million square feet under management

• over 12,500 professionals

Copyright © 2011 Colliers international.

the information contained herein has been obtainedfrom sources deemed reliable. While every reasonableeffort has been made to ensure its accuracy, we cannotguarantee it. no responsibility is assumed for anyinaccuracies. readers are encouraged to consult theirprofessional advisors prior to acting on any of thematerial contained in this report.

accelerating success.

richard kirkemanaging director | hong kongtel +852 2822 0699fax +852 2107 6047email [email protected]

www.colliers.com


hong kong residential real estate market report - 2q 2011

Real Estate