Commentary

Valuation and new real estate business models 

As new operating models emerge, property valuers may need to be mindful of the way real estate is run when making valuations.
11 days ago

Valuation and new real estate business models 

As new operating models emerge, property valuers may need to be mindful of the way real estate is run when making valuations.
11 days ago

True interpretation of Hong Kong residential market under COVID-19

The coronavirus pandemic has affected all sectors of the economy with some sectors having a harder time than others. The impact of the pandemic can be said to be unprecedented. Although rents in Hong Kong residential market started to slide in the middle of last year, prices however are still at a high level. If we go back to the early stages of the pandemic, everybody was holding a wait-and-see attitude on the property price movement with some even hoping that prices would plummet as much as what we saw during SARS in 2003. However, things did not pan out as expected with rents falling but not prices. This only means that the rate of return is going to drop further. However, if we look at it, from a macro-economic view or from the micro view of rate of return, why do Hong Kong property prices have this kind of performance? With the strange situation of the property market as it is now, how do we examine it in order to really understand it?
6 months ago

“Two-envelope approach” tender: Central Harbourfront site sale ultimately based on price

According to the Government's Land Sale Programme, the commercial plot New Central Harbourfront Site 3 will go to tender in the third quarter of this year. Instead of the usual highest bidder wins approach, the tender of this site will adopt a “two-envelope approach”. Developers will be required to submit separately a design proposal and a price proposal. The Development Bureau earlier further explained its scoring methodology to the Harbourfront Commission and the Land and Development Advisory Committee, in which the weightings for design and price will be 50-50. The tenderer with the highest combined score will be awarded the tender.
7 months ago