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The pandemic-induced housing boom continues with prices rising by 9.2% on average across 55 countries and territories in the year to June 2021. Ten of the world’s developed economies averaged price growth of 12% in the 12 months to June, double that seen in key developing markets (4.7%).  The rise in Hong Kong home prices is almost the fastest in Asia in the second quarter by about 2% from a quarter ago. On a quarterly basis, the growth exceeded Singapore, Mainland cities, and Korea. 

• The index is now rising at its fastest rate since Q1 2005

• A breakdown by developed and developing economies shows a more nuanced picture with developed markets outperforming by some margin

• 18 (33%) of markets tracked saw prices increase by 10% or more in the year to June 2021

• At 16.4%, Australia recorded its highest rate of annual price growth since 2003

• Purchase sentiment in the primary market is strong, the residential price in Hong Kong raised 2.6% YoY  

This article was originally published in https://www.knightfrank.com/

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The megatrend of ageing populations challenges cities worldwide in terms of accommodation and care, and Hong Kong is no different. The lack of buildable land and even buildings that can be refurbished create concerns over limited senior living options, especially for today’s seniors.

As a result, there is a market need to provide a product that caters for this senior demographic. And with limited supply, demand, and stable income, it creates viable interest for investors, developers and operators, especially as we believe senior living assets could reach yields of up to 3.25% per annum, outperforming residential and Grade A office returns.

To discover more, access our exclusive publication ‘Senior living; Hong Kong’s new investment horizon’ to #SeeWhatCouldBe, or contact one of our experts Hannah Jeong, Stella Ho or Winter Ren.

This article was originally published in https://www.colliers.com/

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On 13^th September 2021, the Ministry of Law unveiled the Rental Waiver Framework (RWF) under the COVID-19 (Temporary Measures) (Amendment No 4) Bill. The RWF is expected to commence in October 2021.

During the Phase 2 (Heightened Alert) (P2HA) periods between (1) 16 May to 13 June 2021, and (2) 22 July to 18 August 2021, some businesses were disrupted by the safe management measures imposed to curb the spread of the COVID-19 virus. Under the Rental Support Scheme (RSS) announced in May 2021, the government introduced support measures to alleviate the economic impact on both small and medium enterprises (SMEs), as well as eligible non-profit organisations (NPOs). The support measures included two cash payouts - the first pay-out was to be disbursed starting from 6 August 2021, while the second payout will be disbursed in October 2021.

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In the middle of a global pandemic and the related economic crisis, why should we be interested in the state of wealth around the world? More so than ever before, private capital is becoming more crucial in driving economies and real estate markets globally. Global response to the pandemic saw interest rate cuts and governments increase fiscal stimulus to support economies. As a result, the populations of many countries experienced an accelerated growth in assets, increasing the world’s ultra-high net worth population by 2.4%. Last year alone, 32% of global property investments came from private investors, which is 9% above the 10-year average, higher than the 6% fall in the amount committed by institutional investors. At the heart of The Wealth Report is the Attitudes Survey, which captures insights provided by the world’s leading private bankers and wealth advisors. It gives us unique perspectives on the investment and lifestyle decisions taken by Ultra-High-Net-Worth Individuals (UHNWIs). Included is Knight Frank’s proprietary Prime International Residential Index (PIRI), which provides a comprehensive update on the performance of the world’s 100 most important luxury city and second home markets.

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