Home prices in Hong Kong fall 0.6% in October – ET RealEstate

HONG KONG: Private home prices in Hong Kong eased 0.6% in October, weighed down by a bigger drop for large apartments, official data showed on Thursday.

The fall last month compared to a revised 0.4% gain in September, according to data from the Rating and Valuation Department. Prices have risen 0.4% so far this year.

Prices in one of the world’s most expensive property markets had been resilient despite the COVID-19 outbreak and political uncertainties, supported by strong demand and low interest rates.

Property agents expect new developments and relaxed social distancing measures in October to support sales and prices in the short term, although the outlook for 2021 is for further weakness.

Rating agency S&P said this week it expected Hong Kong home prices to fall a further 5% in 2021, due partly to rising unemployment.

Total transaction volume in the secondary market so far this year has surpassed the full-year volume in 2019, realtor Centaline said. It expects 2020 transaction value to exceed last year’s to become the third-highest on record.

Hong Kong leader Carrie Lam said on Wednesday the government had no plan to adjust stamp duty rates for residential properties, citing tight housing supply and prices “beyond the reach of the average households”.

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Gurugram: DTCP denies completion papers to Malibu Towne – ET RealEstate

GURUGRAM: The department of town and country planning (DTCP) has denied a completion certificate to Malibu Towne as the developer failed to complete construction of community sites. The township has around 16 approved community sites, of which only 11 have been constructed so far.

Malibu Towne has been mired in controversy for a host of violations and illegal construction in the green belt. The township was allegedly constructed without taking mandatory environment clearance and development was not completed as per the approved plan.

Malibu Estate Private Ltd had applied for the completion certificate for its residential plotted colony —Malibu Towne — which is developed on 205 acres of land in Sector 50.

Senior town planner (STP) Sanjeev Man said as per the approved layout plan of the residential plotted colony of Malibu Towne, it should have 16 community facilities like schools, dispensary, crèche, religious buildings and club. All these structures should have been completed by May 2018. However, it was noticed that of the 16 community sites, the occupation certificates have been issued only for 11 community buildings till September 2018. Also, one religious building has been handed over to the government and a site for a sub-post office is provided in the shopping centre. “The occupation certificates for the remaining four community buildings have not been obtained by the developer till date,” he said.

The licence issued to the colony, according to the official, has lapsed and the developer has not renewed it. The DTCP has also found other violations like unauthorised construction in green belt, construction of sewerage treatment plant in the green area, installation of generator sets in parks and construction of an unauthorised cable room. “In view of these reasons, the completion certificate was declined to the township,” said K Makar and Pandurang, DTCP director.

The developer of Malibu Towne could not be contacted for his comment despite repeated attempts by TOI.

On October 17, developers and directors of Malibu Towne were booked by Gurgaon police for multiple violations of existing norms and rules related to developing a private colony. The case was registered on the district town planner’s complaint. The move was initiated after the DTCP hadn’t received a satisfactory reply on the violations from the developer. In October, a dispensary constructed on a one-acre land was allegedly demolished following the department had issued a notice to the developer.

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Reliance Nippon Life Insurance leases 40,000 sq ft at Adani Inspire in BKC – ET RealEstate

MUMBAI: Reliance Nippon Life Insurance (RNLI) has taken a 40,000 sq ft space on a five-year lease at an Adani Realty project in the BKC business district to house its corporate headquarters, officials said on Wednesday.

Rental details of the transaction, one of the largest in recent times, were not immediately available.

“RNLI has signed up to have 40,000 sq ft in Bandra Kurla Complex‘s (BKC) Adani Inspire for five years,” a source said.

When contacted, RNLI’s chief executive and managing director Ashish Vohra confirmed the development while officials at Adani Realty were not available for comment.

“Corporate office relocations are a matter of long term commitment and the recovered business sentiment regarding the value of life insurance product gives us the confidence to make this decision. BKC is a prominent and centrally-located business district,” Vohra told PTI.

This is the second big deal clinched by Adani Realty for the 8 lakh sq ft project in BKC, after Japanese lender MUFG took 30,000 sq ft in the commercial property on a ten-year lease. A slew of banks, finance companies and insurance players have their head offices in the BKC business district.

The city’s realty market had been impacted because of oversupply and high prices, which only aggravated because of the economic impact of the pandemic. However, policy measures like a halving of duties for a limited period and interest rates being at 15-year lows have led to some revival.

The pandemic and the ensuing shift to work from home models because of the lockdowns had resulted in concerns for the commercial realty market, as there is a view that demand for space may be hit as companies may not require space to house staff.

RNLI will be moving to the space from Reliance Centre in nearby Santacruz, whose possession has been taken over by Yes Bank for non-payment of loans.

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‘To-let’ boards abound in Vijayawada as tenants move to outskirts – ET RealEstate

VIJAYAWADA: House rents in Vijayawada seem to have come down following the pandemic outbreak. Sights of to-let boards have become quite common as people move to the outskirts where rents are lower as job losses have impacted incomes.

Vijayawada saw a sudden spike in house rent in 2015. Two and three-bedroom houses saw a huge spike in demand and rent in some areas touched Rs 20,000 a month. Many tenants found it unfeasible and moved to smaller homes. The demand for shelter in urban slums too saw a rise.

But now, the situation has changed quickly. With the pandemic causing job losses and companies to cut salaries and the proposed shift of executive capital to Visakhapatnam, more and more people are choosing to move to the outskirts in hope of cheaper rents.

K Santosh Chaitanya, who works at a private company, said, “My organisation reduced my salary by 40%. So I have had to cut down on my monthly expenses. I have moved to Gudavalli recently where houses are more affordable.”

As a consequence, house-owners are having a tough time as tenants keep vacating houses. Around 20% houses have been vacated over the last few months and have not found new takers.

M Hanumantha Rao of Durgapuram said, “My family is entirely dependent on rent. Five single-bedroom flats in my house are lying vacant for the last three months. Tenants have moved out for various reasons. We have cut rent by 30%, but still haven’t found any takers.”

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