2022年12月16日星期五

Dash to lift lockdowns... at last! 20221216

After vacillating and hiding for far too long behind the rest of the world, the tide of protests finally prompted Chinese authorities to swiftly take down most of its lockdown measures - almost like a domino fall, and it is still in motion by the day.

Good news at last for HK properties as the PRC money and talent starved SAR will finally be able to play its conduit role without which it can hardly be called an international 'anything' centre...

So briefly here are some of the big changes that have been implemented or hinted to be put into effect:

HK relaxations:

  1. LeaveHomeSafe (the identity tracing app) scrapped from 14th Dec - residual restrictions of vax status scan still required to enter dining venues (article 3);
  2. Quarantine-free travel between China and HK from early January - see article 2;
  3. We expect the embarrassing climb down by officials means the vax pass may also be abandoned in Jan, signalling a full return to normal after 3 years of prison like living.

China's “Ten New Measures”:

The measures (details in article 1) came down like a tone of bricks and swiftly swept through China like wild fire from 13 Dec onwards. The impact is jaw dropping in its magnitude and extensiveness, one day after the announcements:

  1. Search volume for air tickets increase by 438% ;
  2. Search volume for air tickets during Chinese New Year increase by more than 5 times;
  3. Search volume for train tickets increase by 276%;
  4. Search volume for train tickets during Chinese New Year increase by nearly 7 times;
  5. Search volume for hotels increase by 7 times
  6. vs a week before, scenic spot ticket sales rose by 59% to 300%

Back to HK, we expect the reopening to finally put a bottom beneath the rental levels of ALL property types, with prices benefitting as well. Take retail for example: 



Assuming PRC visitor numbers return to pre-unrest/pre-lockdown days in the 2017-18 area (blue arrow), we could safely project F&B value to go up 24% from here (or combined 12% to mid-23 (lower red arrow) and then another 13% to end-24 (upper red arrow)), or if we ignore the events of the past four years and assume the pre crisis trend (red dotted line) will continue, an even larger 51% rise from here (red dotted arrow).

Extending the analysis to retail rents:
It is not difficult to see retail rent will rise some 10% conservatively from here in the next year and half (red arrow), and if a return to trend unfolds, even 23% rise from here over the same period (dotted red arrow). All this is before we factor in the high inflation that is now the norm, which tends to push up rents even when the economy slows...

Now is a good time to lock in your rental agreements (if not already late), before aggressive hikes becomes a norm in the new year?


-----------------------------------------------------article 1------------------------------------------------------------

The “Ten New Measures” have just been released, and the search volume for air tickets has increased by 438% in an instant, and the search volume for hotels on New Year’s Day has increased by 7 times! Searches for air tickets soar to three-year high on the eve of Chinese New Year

December 07, 2022

On December 7, the National Joint Prevention and Control Mechanism issued the “Notice on Further Optimizing and Implementing Prevention and Control Measures for the New Coronary Pneumonia Epidemic”. The notice proposed a total of 10 specific items, including scientifically and accurately dividing risk areas, further optimizing nucleic acid testing, optimizing and adjusting isolation methods, etc....

Optimizing the implementation of the new ten rules for epidemic prevention and control is here! focus

  1. Temporary blockade in various forms shall not be adopted;
  2. No more inspections of nucleic acid test negative certificates and health codes for cross-regional migrants, and no landing inspections; except for nursing homes, welfare homes, medical institutions, childcare institutions, primary and secondary schools and other special places, no nucleic acid test negatives are required proof, without checking the health code;
  3. Asymptomatic infected persons and mild cases who are eligible for home isolation are generally home isolated;
  4. High-risk areas with no new infections for 5 consecutive days should be unblocked in time;
  5. The online and offline purchase of antipyretic, cough, antiviral, cold and other over-the-counter drugs shall not be restricted;
  6. Accelerate the vaccination of the elderly against the new crown virus;
  7. Promote the implementation of hierarchical and classified management;
  8. Non-high-risk areas shall not restrict the movement of people;
  9. It is strictly forbidden to block fire exits, unit doors, and community doors in various ways;
  10. Schools without the epidemic should carry out normal offline teaching activities.

above text from Google Translate, Chinese version: 

-----------------------------------------------------article 2------------------------------------------------------------

Hong Kong to send ‘thousands of officers’ to checkpoints along mainland Chinese border ahead of shift towards freer travel

Cannix Yau and Clifford Lo | 16 Dec, 2022

...
[quoting key points of the article only]

Sources previously told the Post that the city was set to fully reopen its borders with the mainland and resume the high-speed train service to Guangdong from early next month.

The expected reopening follows the government’s decision to roll back anti-epidemic restrictions, such as easing entry rules for arrivals and no longer relying on the “Leave Home Safe” risk-exposure app, despite a significant increase recently in Hong Kong’s virus caseloads.

Thursday marked the highest number of daily cases since March 18, with health officials reporting 17,080 infections, 831 of which were imported, and 19 additional deaths.

The city’s overall tally stands at 2,307,397 cases and 11,075 related fatalities.

As part of eased restrictions on the mainland, authorities there have introduced measures to facilitate the cross-border flow of people and goods from Hong Kong, including increasing the daily quota for the number of residents allowed to cross from 2,000 to 2,500 on Thursday.

From Monday, mainland authorities have also allowed cross-border truck drivers to collect and deliver goods directly to destinations there without using the designated checkpoints.
...

A third government source said authorities would conduct refresher training for officers, inspect equipment and test computer systems, as well as carry out disinfection of facilities before reopening the checkpoints.
...

A source familiar with the plan to fully reopen the border said Beijing was keen to restore travel by earl He added that the reopening had been planned for a long time but was postponed several times as a result of different circumstances.

...

Hong Kong Railway Employees Union chairman Tam Kin-chiu said the move was subject to government approval but rail staff had already received rosters for both days.


-----------------------------------------------------article 3------------------------------------------------------------

Covid-19: Hong Kong axes app QR scanning to enter venues and lifts some restrictions on arrivals
by HILLARY LEUNG | 13-Dec-2022

While the use of the LeaveHomeSafe app for entering businesses has been scrapped, members of the public must still show their Vaccine Pass. Separately, arrivals will no longer be issued an amber code.

Hong Kong will no longer require members of the public to scan their Covid-19 LeaveHomeSafe app to access restaurants and other businesses starting from Wednesday, though vaccine proof will still be needed.

Arrivals will also not be issued an amber code in their LeaveHomeSafe app, meaning that people will be able to visit restaurants and other businesses during their first three days of landing in Hong Kong. Vaccine proof, several rounds of testing, and a health declaration will still be mandatory to enter the city.

Making the announcement at a press conference on Tuesday, Chief Executive John Lee said the adjustments were based on data and risk assessment.

“The risk of imported cases to Hong Kong is even lower than the risk of getting infected in the community,” Lee said. “Cancelling the amber code [arrangements] will not increase the risk of getting infected locally.”

He added that under the new rules, the LeaveHomeSafe app will only issue two different codes – red for those infected with Covid-19, and blue for those not infected.

The use of the Vaccine Pass, however, will still be required to enter businesses.

...

Residents are still required to wear face masks, including outdoors, and a gathering limit remains in force for groups larger than 12.

Arrivals to the city are also subject to two PCR tests and daily rapid tests for their first five days in the city.

He added that the resumption of “normal travel” with the mainland was “close to [his] heart.”

“I’ll do everything that can facilitate it, but we also must be aware that the decision must similarly be made on the actual situation… but I think that all people want to have as few restrictions as possible,” Lee said.

Hong Kong has seen 2.26 million cases of the virus since the onset of the pandemic, and 10,984 deaths according to the government’s Covid dashboard on Tuesday.


2022年11月22日星期二

UK Property - No running from tax hikes... 20221122

Since our 13th May, 20th May & 20th September bearish analysis of the UK property market, things have not improved on any front. Now, the Autumn Statement 22 just delivered by the Chancellor either added or worsened headwinds the UK is facing: as we have feared, higher taxes will now follow the double whammy of higher finance cost and higher inflation... 

Some significant tax hikes are summarised here:

Higher rate payers now hit sooner

  • 1/4 million more people in Britain would pay the top rate tax as a result;
  • Higher earners start paying top rate of tax earlier - threshold lowered to £125,140 from £150,000:

Dividend tax allowance halvings

  • allowance will be halved from £2,000 to £1,000 and then halved again to £500 in 2024 - will hit entrepreneurs and small businesses most

Capital Gains Tax exemption cut

  • annual exemption will halve from £12,300 to £6,000 from April 2024, then drop to £3,000 from April 2025
  • People will hold off from selling, or quick spike in sales before implementation of the new threshold

Other key changes:

  • 6-year freeze on the personal allowance = millions pay more tax;
  • The Inheritance Tax nil rate band have been frozen at £325,000 until 2028 = pay more if values increase;
  • The Residence nil rate band have been frozen at £175,000 until 2028 = pay more if values increase;
  • Energy firms hit with Windfall Tax of 35%, up from the 25% already levied = no cash left to invest in supply to alleviate high energy costs;

In the meantime, the pace of inflation keeps accelerating - the Oct reading is now a new high of 11.1% YoY:

all while our expected peak of price-earnings-ratio may have now arrived too - suggesting underperformance in home prices vs income (probably anaemic given the worst economic outlook on record - see article 2 for details):

On top of all these, the life of landlords will continue to deteriorate as residual rights to their own property get progressively pried out of their hands, see article 1 below.

As a result of these alarming datapoints, and our expectation of further GBP weakness, the reason to keep holding properties there is diminishing by the day... Sell if you have not already started. The winter is only beginning...


---------------------------article 1 - below are our extracts-----------------------------------------------

A FAIRER PRIVATE RENTED SECTOR?

21 Oct 2022 by ALEXANDER CLARKE

On 11 October 2022, the Government confirmed it would commit to a manifesto pledge and honour the White Paper ‘A Fairer Private Rented Sector’. This means a ban on no-fault evictions for private renters and essentially scrapping Section 21 of the Housing Act 1988, amongst other new measures.

No more no-fault evictions?

  • As part of this proposed change, a landlord would no longer have the right to end the tenancy for no reason and it would be necessary to give reasons (i.e. rent arrears, breach of tenancy) and pursue a possession order under Section 8 of the Housing Act 1988.
Decent homes standard

  • As part of the White Paper, the Decent Homes Standard, which already applies to social housing, will be extended to the private sector.

Other proposals

Other measures in the White Paper include:
  1. Introducing a new single Ombudsman to whom all private landlords must be answerable
  2. A new Property Portal to help landlords to understand, and comply with, their responsibilities, as well as giving councils and tenants the information they need to tackle rogue landlords.
  3. Stronger enforcement powers for local authorities
  4. Only allowing increases to rent once per year, end the use of rent review clauses, and improve tenants’ ability to challenge excessive rent increases through the First Tier Tribunal.
When?

The proposals will require legislation before they come into force and it was expected that Government would introduce a ‘Renters Reform Bill’, encompassing the above proposals, in 2023.

-----------------------------------------article 2-below are our extracts-------------------------------

UK faces longest recession since records began, Bank of England says

Karen Gilchrist NOV 3 2022

KEY POINTS
  • The Bank of England said Thursday that the U.K. is facing its longest recession since records began.
  • The central bank described the outlook for Britain’s economy as “very challenging,” noting that unemployment would likely double during the country’s two-year slump.
  • The BOE raised interest rates by an historic 75 basis points Thursday, its largest hike in 33 years.

2022年11月15日星期二

香港樓市已死?20221115

最近,香港樓價已進入下降周期之說似乎漸成共識,特別是中原指數自2019年起三頂不破而轉頭向下,上周更跌至新低後(見【圖一】中綠線)。至今該指數已由高位累跌12%:

圖一:以不同貨幣計價的樓價指數


但對身處世界各地的投資者來說,回報的計算總是會以本國熟悉的貨幣為計價單位,因此只有當環球大多數投資者以本身角度去量度都同時觀察到樓價下降時,香港樓價進入跌市之判斷才能成為「客觀的共識」。

為確定香港樓價下跌是否真的已成共識(【圖一】似乎暗示時機未到),筆者由以下主要貨幣著手:

一)非美元地區(以美匯指數計價,代表其成份籃子內國家之集體共識;以下簡稱“美指籃子”)

二)歐盟區(以歐元計價);

三)英國(以英鎊計價);和

四)全球的黄金投資者(以金價計價)


港樓對海外投資者而言仍處牛市

從發達經濟體(即美匯指數中六大國貨幣,見【圖三】)角度來看,以港元(【圖二】中藍線)計價之樓價下跌勢頭並未被以美匯指數計價的樓價趨勢(紅線)確認:

圖二:以非美元計價的樓價仍呈上漲趨勢

事實上,以美指籃子計算的價格仍處上升通道,不論是從長期趨勢(綠色虛線)抑或中期走勢(紅色虛線),甚至是更短線的角度(藍色虛線)都可觀察到!這表明,對於經合組織的一般投資者而言,香港房地產仍是一項上升中的資產。

圖三:美匯指數由六種貨幣構成


港樓對歐羅區投資者更顯強勢

對歐元區投資者而言,港樓的上漲勢頭似乎比以美匯指數及港幣計價更加強勁,而過去數月歐元的急跌使以歐元計算的香港樓價在【圖四】中紅色虛線通道內加速上漲: 

圖四:歐羅區投資者可能正目睹香港樓價加速上行


英國投資者亦見升勢?

同樣,雖然自1981年以來,因美元及英鎊如影隨形而兩個貨幣計價之樓價指數難捨難分,但是自2015年起之英鎊貶值潮導致以其計價之指數開始拋離港元指數,而近期英鎊的急跌,更造就了英國投資者「感覺」香港樓價正在加速上漲的現象!

圖五:英國投資者可能覺得香港樓價正強勁反彈中

自約翰遜執政起的英鎊弱勢(拙劣的脫歐安排及瘋狂的疫下封城政策?)造就了香港資產在疲軟英鎊環境下不斷走強的現象。


黃金是唯一拋離香港房產的貨幣?

對信奉黃金價值的投資者而言,似乎奇蹟出現!以黃金計價的香港樓價,1997年的高峰仍然是未被超越的最高點,意味著從黃金這種貴金屬的角度來看,港樓仍處於一個長線熊市:

圖六:黃金強於港幣,但小幅突破正在發生?

儘管香港樓價指數已經衝破了短線運行通道頂部(【圖六】紅色虛線),但若明年戰爭風險擴大,則黃金可能會重奪主導地位,而以黃金計價的香港樓價亦會逆轉向下。時間會證明一切。


強勢貨幣進口通縮,在萬物騰貴下並非壞事!

在過去40多年的低通脹期内,每當美元疲軟時與美元掛鉤的香港資產通常會走強,如80年代中及2000年早期(見【圖七】)美元弱勢時樓價升勢強勁,反之亦然(主要在90年代後期):

圖七:美元疲軟對房價有利,反之亦然;這次會否一樣?

然而,當下是否會重複類似70至80年代初的強美元環境,令流動性回流美國而產生通貨緊縮?這又與時下超高通脹環境如何互動?今輪美元走強是否是降低「生活成本危機」風險的一個契機?

這是一個非常有趣的議題,在香港短暫的貨幣歷史中肯定是從未見過的…上述研究表明,雖然筆者看跌港幣計價的樓價,但在全球貨幣角度來看,樓市進入熊市之判斷似乎仍言之過早。



筆者特別鳴謝香港大學會計及金融系李旻軒同學協助收集及整理本文相關數據及圖表

2022年11月9日星期三

Bloomberg Talk - How Rate Hikes & Inflation Could Impact the Property Market in 2023

I would like to thank Bloomberg for the invitation to be on the panel on November 8, 2022. At the event, I highlighted the impact of rate hikes & inflation on global housing markets and discussed the opportunities that may lie ahead.

Below is a short extract of some salient points in the presentation.



Event overview:

Aggressive interest-rate hikes could worsen the outlook for global housing markets, particularly Hong Kong, which might continue to follow the U.S. in lifting mortgage rates aggressively until mid-2023. The Hong Kong housing market 2023 outlook versus other major markets like the UK and Singapore will be discussed, and explore if commercial and industrial properties could be an inflation hedge and outperform home prices in Hong Kong.

2022年10月31日星期一

Is bear market confirmed for HK? 20221031

The observation that HK housing is in a downcycle has become consensus of late, after the CCL reaches a new low last week from the triple top dating as far back as 2019 (see green line in Chart 1). Cumulatively the index is now down 12% from the Aug 2021 high:

Chart 1: Home prices denominated in various currencies

But across the world, investors will always think about returns in their own currencies, and therefore, an 'objective consensus' of a true bear market in any asset price is only formed when the bulk of observers around the world see the same down trend that the base currency investors also sees.

So in order to find out whether the HK home prices are truly in a bear market by consensus (Chart 1 does not seem to suggest that is the case), let's take a look at the index as denominated in a few main jurisdictions:

a) the collective non-USD community (as proxied by DXY);

b) the EU community (as proxied by Euro);

c) the Brits (as proxied by GBP); and

d) gold bugs (as proxied by the price of gold).

HK still in bull market to world at large

From the point of view of the developed world population (as the USD index is represented by six liquid currencies, see Chart 3), however, the drop in HKD (blue line in Chart 2) terms is not corroborated by the price as measured by DXY the USD index:

Chart 2: Home price in non-USD terms still trending up

In fact, the non-USD price index is still very much heading up, from the longer term view (green dotted lines) to medium term view (red dotted lines), to even the shorter term time horizon (blue dotted lines)! What this suggests is that for the average OECD investor, HK property is still a rising asset.


Chart 3: make up of the DXY - 6 currencies

Home prices even more bullish for Europeans

For the average person based in Euro, the upward momentum seems even stronger compared to DXY, and HK prices, thanks to the collapse in Euros in the last few months, seem to be accelerating upwards within the red channel:

Chart 4: Euro investors may see HK prices accelerating upwards

Brits also feel the upturn?

Similarly, with the recent precipitous drop in the value of the Pound, the HK home price index will appear to the average Blighty investor to be positively surging even, after HK first started pulling away from a very correlated pairing between the HKD and GBP denominated indices which pretty much shadowed each other since our data started in 1981:

Chart 5: HK prices look strong to the British Pound investor

The much weaker pound post Boris's premiership (botched Brexit plus zealous lockdowns?) ensures that the weak pound has provided a strong platform for HK assets to appear to go from strength to strength.

Gold the only currency beating HK property?

For those who believe in gold, there is good news - In Gold terms, the 1997 peak remains the unsurprised top for HK home prices, meaning that we may still be in a bear market when measured from the perspective of the precious metal:

Chart 6: Gold strong vs HK, but mini breakout underway?

Even though the price index has broken above a near term trading channel, as indicated by the red arrow in Chart 6, if war does flare up more next year, we think gold might reassert its dominance and the break up could reverse. Time will tell.

Strong currency imports deflation, which is not a bad thing now!

In normal disinflationary times such as most of the past 40+ years, being pegged to the USD is good for HK assets during times of weak USD, as Chart 7 illustrates - weakening or weak USD is generally accompanied by bouts of strong home price increases, and the reverse held true (mostly in the mid/late 90s):

Chart 7: weak USD good for home prices, and vice versa - will it be different this time?

However, could we be in a period similar to the early 70s or early 80s, when strong USD will suck liquidity away from HK and produce deflation? How does this contrast the current super high inflationary environment? Is the strong USD a blessing as it reduces the 'cost of living' crisis that would otherwise hit these shores?

A very interesting dynamic, not seen before in our brief monetary history for sure... The above study shows that, whilst we remain somewhat bearish on the outlook of the HK market, more needs to happen in the global currency markets before it is a true foregone conclusion...


The author would like to thank Lee Man Hin Carson from The University of Hong Kong majoring in Accounting and Finance for assisting in data collection, analysis, and drafting of this article.

2022年10月27日星期四

‘We never lost interest’: Asian family offices buy into crypto 20221027

Your author in media : [FT - ‘We never lost interest’: Asian family offices buy into crypto]

William Langley and Chan Ho-him in Hong Kong, 26 Oct 2022


Family offices in Asia are buying into cryptocurrencies, despite months of market turmoil, as weak returns from their traditional portfolios make digital assets attractive.

The interest from investment managers suggests there are still new buyers of cryptocurrencies such as bitcoin and ether, after a boom in digital asset prices during 2020 and 2021 turned to a bust.

Several family offices and wealthy individuals in Hong Kong said this year’s decline in digital asset prices had to be set against the poor performance of local equity and property markets.

After experiencing volatility in the first half of the year, cryptocurrency prices have recently plateaued, prompting speculation about whether they have bottomed out. Investors said the assets remained an appealing hedge against wider market ructions.

“We never lost interest in [crypto],” said Keith Wong, chief executive of Winland Wealth Management, a Hong Kong-based multifamily office. “We see it as diversification and a separate asset class.”

A survey of 30 family offices and wealthy investors in Hong Kong and Singapore, published by KPMG China and crypto group Aspen Digital on Monday, found that 92 per cent of respondents were interested in digital assets, with 58 per cent already invested and 34 per cent planning to do so.

More than 60 per cent of the respondents were family offices or individuals managing assets worth between $10mn and $500mn, said the report.

Bitcoin, the world’s largest cryptocurrency, has dropped about 70 per cent from its peak in November 2021 and has been trading between $18,000 and $25,000 since June. Ether, the next largest coin by market capitalisation, is down about 60 per cent per cent year to date.

However, Hong Kong’s traditional asset classes have also suffered this year, with the city’s equities underperforming US and European stocks. The benchmark Hang Seng index is down more than 30 per cent this year, hit by geopolitical tensions and repeated Covid-19 lockdowns in mainland China.

The city’s housing market has slumped to its lowest level since the 2008 financial crisis following years of coronavirus restrictions and successive interest rate rises.

“All [my] friends with family offices are saying they have shifted . . . into other things like having an art portfolio . . . and cryptocurrencies as well,” said a wealthy investor in Hong Kong, adding that the property sector had been “really stagnant”.

The focus on family offices comes as crypto companies in Hong Kong are lobbying regulators on licensing requirements that will come into effect in March. The industry fears the rules will preclude access to retail investors.

“For the average high-net-worth individual . . . whatever people recommended in gold, you can chop it in half and allocate half of your precious metal to crypto, because that’s an easy way to hedge,” said Eric Wong, managing director of Bricks and Mortar Management, a Hong Kong-based multifamily office.

Hong Kong-based Raffles Family Office has set up a joint venture with crypto company Huobi Tech to service the “unmet” needs of ultra-wealthy families seeking to invest in digital assets. C Capital, the asset manager founded by Hong Kong tycoon Adrian Cheng, plans to raise about $200mn to invest in blockchain assets over the next 18 months.

Digital assets face a generational divide, advisers said, with crypto companies keen to tap into “old money” from individuals who are more resistant to the new asset class.

“For example . . . the other day I was sitting with a family . . . the parents know nothing about crypto and the kids are asking about it,” said Winland Wealth’s Wong.

In the long run, this intergenerational dynamic will bring more crypto buyers “from the elderly side of the population pyramid”, said Bricks and Mortar’s Wong.


https://www.ft.com/content/5646ce04-ff09-4230-a35b-e46529545a4f

General Disclaimer - where quoted in media reports, your correspondent does not exercise control on editorial policy and therefore what appears in the publication may not coincide, or even rarely, contradict your correspondent's views...


2022年10月20日星期四

【施政報告】王震宇 寬免買樓辣稅難吸大量海外專才 20221020

 


【Now財經台】《施政報告》提出向外來人才退還買樓額外印花稅,不過,未有提及其他樓市「減辣」措施,地產建設商會表示失望。


《施政報告》提出,推出一系列措施更積極搶企業及搶人才。合資格人士在香港住滿7年並成為永久居民後,可申請為仍持有的物業退還已繳付的買家印花稅(BSD)及新住宅印花稅(NRSD)。


以1個樓價1000萬元的住宅物業為例,原本非本地居民須繳交樓價15%的BSD,以及15%的從價印花稅(AVD),涉及300萬元稅款。不過,即日起簽署的買賣協議,當他們成為香港永久居民,只需承擔跟港人一樣,按「第二標準稅率」計算的3.75%印花稅,之前多繳的部分,即約262萬元可申請退回。


地產建設商會對《施政報告》沒有進一步為樓市「減辣」感到失望。


地產建設商會執委會主席梁志堅說:「(政策)幫不到樓市,有些失望。即使有人願意買樓也好,如果要滿7年才退還,即是做了與沒有做沒有太大分別,買樓住照樣要(支付)是完全沒有意思。」


有分析認為,措施不會突然吸引一批人士來港,亦不會影響樓市。


Bricks & Mortar Management主席王震宇說:「很多時過了4、5年後,才會決定考慮成為永久居民,你問很多外籍人士都會這樣回答。這個(政策)只會令到他們來港工作少了1個負面因素而已。」


王震宇認為,除按揭壓力測試,所有妨礙自由市場的樓市「辣招」都應該撤銷。


訪問來源:NowTV【施政報告】

NowTV Chanel 331

特此鳴謝

NowTV 記者:Sarene Ho

攝影及剪接:NowTV Production Team

請前往作者YouTube頻道觀看更多視頻: 王震宇宇論 Yulun

2022年10月19日星期三

【樓市指南針】施政報告房屋範疇 20221019

 2022年10月13日
【Now財經台】

直播訪問內容:


1. 政府指,為了招攬人才合資格外來人士,在港置業居港七年並成為香港永久性居民後,可就已購入並仍然持有的首個住宅物業申請退還買家印花稅及新住宅印花稅。此政策吸引力如何?

2. 有業內人士指;有關調整稱不上「撤辣」,對其他推行十多年的「辣招」未有鬆綁亦感到失望。你會如何解讀政府維持「辣招」的舉措?

3. 當中有何利弊?是否真的很擔心「撤辣」令樓市升溫?

4. 包括你在內,不少分析已認定樓市處於下行周期。現時「辣招」維持亦未見有其他刺激樓市的政策;你對今年餘下時間及明年樓市前景有何最新看法?整體樓市買賣會否進一步萎縮?

5. 相比中小型住宅,豪宅前景是否更暗淡?

6. 施政報告公布前,元朗有新盤開價見到首批單位折實呎價重返2018年的水平;又提供「漸進式按揭」計劃。你會如何評估發展商短中期的賣樓壓力?推盤及定價策略會有何變化?


訪問來源:

NowTV【樓市指南針】- NowTV Chanel 333 Trading Hour

特此鳴謝

NowTV 記者:Karmen Lee

攝影及剪接:NowTV Ingest & Production Team

請前往作者YouTube頻道觀看更多視頻: 王震宇宇論 Yulun

2022 HK policy address speech - Pro property and pro industrial 20221019

Key points of the policy speech are as follows:

a) all out attracting talent to HK - a must do given the loss of 140k population in the past 2-3 years, this is contained in divider a) below;

b) more drive for family office hub as well as other small measures of business support see divider b);

c) housing bad policy continues - i) plundering private market share with every rising PRH/HOS supply, resulting in every higher private home prices and ever more public housing slaves - what a missed opportunity! ii) displacing brownfields into new built industrial - likely insufficient vs demand; iii) private supply low, but development process shortening. see divider c);

d) major speeding up of infrastructure build out - mostly roads and rails, very positive and lots of opportunities opening up for the smart property investor see divider d).

In summary - talent will not come unless we lift the lockdowns, but otherwise by and large a pro property speech with lots of bright spots, but sadly will not help affordability of housing, which is unsurprising given how entrenched the public-housing vested interest groups is!

below are extracts of the speech, emphasis are mine, with odd comments thrown in:

-----------------------------------------------------a) Talent------------------------------------------------------------

Attract Enterprises, Investment and Talents to Enhance Competitiveness

26. …new institutional setups and implement an array of new initiatives targeted at attracting enterprises, investment and talents:

establish the Office for Attracting Strategic Enterprises (OASES), led by the Financial Secretary, for attracting strategic enterprises …offering them special facilitation measures and one-stop services;

establish the Talents Service Unit, led by the Chief Secretary…formulating strategies to recruit talents;

set up Dedicated Teams for Attracting Businesses and Talents …reach out to target enterprises and talents and persuade them to pursue development in Hong Kong;

set aside $30 billion from the Future Fund to establish the Co-Investment Fund for attracting enterprises to set up operations in Hong Kong and investing in their business;

launch the Top Talent Pass Scheme;

enhance existing talent admission schemes; and

upon becoming permanent residents, apply for a refund of the extra stamp duty paid for purchasing residential property in Hong Kong.

27. The OASES will:

1. draw up a list of target enterprises …to reach out to and carry out negotiations with the enterprises;

2. measures covering aspects such as land, tax and financing that are applicable exclusively to target enterprises, and …tailor-made plans to facilitate the setting up in Hong Kong; and

3. provide the employees …one-stop facilitation services in areas such as visa application and education arrangement for their children.

Trawl for Talents

29. Over the past two years, the local workforce shrank by about 140 000. … We will:

1. launch the Top Talent Pass Scheme for a period of two years. Eligible talents will include individuals whose annual salary reached HK$2.5 million or above in the past year, and individuals graduated from the world's top 100 universities with at least three years of work experience over the past five years. …two-year pass …not subject to any quota. Individuals who graduated from the world's top 100 universities in the past five years and have yet to fulfil the work experience requirement will also be eligible, subject to an annual quota of 10 000;

2. streamline the General Employment Policy (GEP) and the Admission Scheme for Mainland Talents and Professionals (ASMTP), vacancies under the 13 professions in the Talent List with annual salary of HK$2 million or above, employers are not required to provide proof to substantiate their difficulties in local recruitment;

3. suspend the annual quota under the Quality Migrant Admission Scheme (QMAS) for a period of two years;

4. relax the Immigration Arrangements for Non-local Graduates (IANG) by extending the limit of stay from one year to two years …expand to cover the GBA campus of a Hong Kong university on a pilot basis for a period of two years.

5. enhance the Technology Talent Admission Scheme (TechTAS) by lifting the requirement for technology firms to employ additional local employees;

6. extend the limit of stay of employment visas … will be valid for a maximum period of three years; and

7. refund the extra stamp duty …become a permanent resident …can apply for a refund of the Buyer's Stamp Duty and the New Residential Stamp Duty paid for the first residential property purchased which they still own, while the Ad Valorem Stamp Duty at Scale 2 rates is still payable such that the overall stamp duty charged will be on par with that charged on first-time home buyers who are ordinary permanent residents.

30. waive the requirement of applying for an employment visa for more visitors participating in short-term activities in Hong Kong. …will expanding to more categories.

---------------------------------------------------b) Business Freebies--------------------------------------------

International Financial Centre

37. …strengthen asset and risk management – …to offer tax concession for eligible family offices. The target is attracting no less than 200 family offices to establish or expand their operations in Hong Kong by end-2025.

45. support the convention and exhibition (C&E) industry …new $1.4 billion scheme …to subsidise more than 200 exhibitions to be staged in Hong Kong over three years.

46. To provide further support for SMEs, we will:

extend concessions of government fees and charges –reduce 75% of water and sewage charges for non-domestic accounts for eight months from 1 December 2022 to 31 July 2023, subject to a monthly ceiling of $20,000 and $12,500 respectively per household. …provide 75% rental or fee concessions …tenants of government premises and eligible short-term tenancies and waivers under the Lands Department for six months from 1 January 2023 to 30 June 2023.

----------------------------------------c) Housing Madness Continues-----------------------------------------

63. The Steering Committee on Land and Housing Supply and the Task Force on Public Housing Projects …submitted …reports. set the following key strategies and targets:

1. introduce the new Light Public Housing (LPH), with about 30 000 units to be built in the coming five years; [ed: only bureaucrats know how to create more complex structures over already bewildering complicated infrastructure]

2. increase public housing production by about 50% in the coming five years (from 2023-24 to 2027-28);

3. cap the waiting time for PRH immediately. …6 years and shorten it to about 4.5 years in four years' time (i.e. in 2026-27);

4. saleable area of all subsidised sale flats completed from 2026-27 onward will be no less than 26 square metres [ed: public housing becoming ever more luxurious and ever larger – no longer a safety net];

Private Housing Supply

66. …the demand for private housing in the next 10 years will be 129 000 units. …providing no less than 72 000 residential units in the next five years. [ed: private ownership is now an after thought in the bureaucratic housing steam roller]

69. …plan to make available land in Yuen Long and Hung Shui Kiu for development of multi-storey industrial buildings from next year, with lease conditions requiring a certain portion of floor area to be set aside for leasing to the affected brownfield operators below market rent.[ed: supply will be much less than displaced brown field site GFA by far, good for industrial property]

70. Tseung Kwan O (TKO) Area …provide 50 000 residential units with the first population intake in 2030 at the earliest. [ed: not a pleasant district – ultra high density dormitory town]

71. To substantially compress the time required for land production, we will:

1. streamline statutory procedures – …bill to amend the Town Planning Ordinance, the Land Resumption Ordinance, the Foreshore and Sea-bed (Reclamations) Ordinance, the Roads (Works, Use and Compensation) Ordinance and the Railways Ordinance, as well as amendment to the Schedules to the EIA Ordinance …the time required …reduced from at least 6 years to 4 years, …large-scale projects from 13 years to 7 years, of which the time for the EIA process will be compressed to within 18 to 24 months;

2. …charging land premium at standard rates for redevelopment of industrial buildings. …extend this approach, [from] only industrial buildings and in-situ land exchange applications in NDAs, to cover agricultural land in the New Territories located outside NDAs to compress relevant workflow; [ed: will speed up industrial revitalisation speed]

3. …lowering the compulsory sale application thresholds for private buildings aged 50 or above but below 70 from 80% to 70% of ownership, and further to 60% for those aged 70 or above. For industrial buildings in non-industrial zoning, the threshold will be lowered to 70% of ownership for those aged 30 years or above; [ed: great for industrial, bad for minority private ownership rights]

----------------------------------------------------d) Infra Galore-----------------------------------------------------

Drive Development by Transport Infrastructure

76. The six major transport infrastructure projects are:

1. Northern Metropolis Highway – It will facilitate east-west connectivity in the New Territories North between Tin Shui Wai in the west and Kwu Tung North in the east via San Tin;

2. Shatin Bypass – connecting Tai Po and Kowloon West …relieve traffic pressure on Tolo Highway;

3. TKO-Yau Tong Tunnel – …third road tunnel at TKO [for] TKO Area 137;

4. Hong Kong-Shenzhen Western Rail Link – Hung Shui Kiu with Qianhai [ed: long shelved but now back on track];

5. Central Rail Link – …12th railway line will connect Kam Tin in Yuen Long with Kowloon Tong via Kwai Chung, alleviating pressure on the carrying capacity of the Tuen Ma Line; and

6. TKO Line Southern Extension –TKO Line southwards to TKO Area 137,.

77. …Kwu Tung Station of the Northern Link will be commissioned in 2027, …the Tung Chung Line Extension, Oyster Bay Station and Tuen Mun South Extension commencing next year.

78. …projects under planning, including Route 11, Tsing Yi-Lantau Link and Tuen Mun Bypass, as well as improvements to Lion Rock Tunnel. 

2022年10月13日星期四

美國州份花多亂 低稅高值此中尋 20221013

本文亦於2022年10月13日在【信報】刊登:美國州份花多亂 低稅高值此中尋

隨全球融資及生活成本突然飆升,尋找低風險高回報的物業投資(或居住)地點變得尤其艱難。除了比較以稅率高低作標準之外(詳見前文《低稅吸人才,樓價亦得益》),本文透過分析美國州政府的稅收構成,以另一角度分析,以發掘未來樓市跑贏機會較大的州份。文中採用稅務基金會(Tax Foundation)的數據,分析美國各州稅收四大類別之間的關係:企業利得稅、個人入息稅、銷售稅及物業稅。

既要所得稅賦的輕,亦好個人利得之衡

對大多既為業主亦為納稅人的個人而言,支付較低的入息稅應更受歡迎。同時,若個人所繳稅額與企業類同(或更低),亦能反映中下階層被更公平地對待,及人民擁有較多的經濟自由。

由此出發,可於散點圖中對比各州在此兩變數上的表現:

一)銷售稅比個人入息稅高——這代表更大部分的政府收入源自消費而非儲蓄。若非入息稅率低廉,又豈能鼓勵長期投資?這項變數繪於下圖X軸上。

二)個人入息稅比企業利得稅低——此結果有兩種可能:若非該州企業蓬勃發展(因而構成較高企業利得稅),則是居民能保留更多工資或業務收入(因為通常只有大企業能以影響力/資源優勢游說/威脅政府減免其企業營收上的稅賦)。此變數繪於下圖Y軸上:

圖一︰對比個人入息稅,更高的銷售及企業所得稅為「好」,反之亦然


散點圖中州份的分佈出乎意料地呈線性。我們圈出以上討論中被歸類為「較佳」的一端並以紅色字標示所屬州份,包括︰德薩斯、懷俄明、內華達、華盛頓、南達科他、田納西、佛羅里達、阿拉斯加和新罕布什爾。

圖的另一端(即個人入息稅收入大於利得稅的州份)以紫色字顯示,分別為︰俄勒岡、馬里蘭、麻省、特拉華、維珍尼亞、紐約和蒙大拿

 

物業入息稅皆勝 花團錦簇勢更優

對物業投資者而言,物業稅負擔的輕重亦是重要考慮因素。為此筆者將上文提及的兩項指標合二為一(數式轉為:銷售稅比重+企業利得稅比重-個人入息稅比重×2),並將結果與物業稅佔州稅收入的比例進行比較,繼而得出下圖:

圖二︰前文選為「良好」同時亦收取較低物業稅的州份——見紅字


 

結果,同時符合低入息稅和物業稅標準的州份只剩下田納西、內華達、華盛頓、南達科他,而佛羅里達亦僅僅入圍。此外,又殺出一個更低物業稅之州份:新墨西哥(兼享有好氣候之優勢)。這對收入不高的投資者或是不錯的選擇(如退休人士)。

在圖中另一端(高個人入息稅州份,以紫色字標示),特拉華收取物業稅比例亦低,但基於其「企業避稅天堂」的聲譽,可能並非普通中產業主的首選。最後,各指標均表現較差的州份為俄勒岡、麻省和蒙大拿。

 

州際移民數據 證明假設成立?

為了驗證上述「低稅收州份具有吸引力」之假設,筆者翻查了近年美國國內移民的數據,並將淨州際移民比例(即將2018-21年各州淨流入數除以2017年人口)來量化該州的吸引力, 結果如下︰

圖三︰低稅州份吸引更多移民

 

一如所料,上文定為「具吸引力」的州份(以紅色字標示者)均錄得人口淨流入,但高稅收州份(以紫色字標示者)卻出現淨流出。圖二排名頭三甲的州份同時見證最高的人口流入量(內華達、華盛頓、田納西),而最差的州則有甚高的淨流出(馬里蘭、紐約和麻省)。

 

低稅還不止 樓價更相宜

 

錦上添花的是,低稅州份中不少城市更在美國最相宜樓價名單榜上有名!根據Numbeo 發佈的2022年樓價收入比(House price income ratio)排名,較易負擔的城市(即低倍數及高排名)不少均位於上文所點出之低稅州份,而昂貴的城市竟正正相反,實在出人意表。下圖中城市名稱後的數字為樓價收入比排名(總共40名),著色仍然遵循上文圖表中分類:

圖四︰低稅州份之城市亦見低樓價收入比

如此完美的狀況似乎有些不可思議,但若人口流入的趨勢持續不變,低水的樓價肯定不會便宜下去……

 本文早前出版的英文版本可在細閱。

筆者特別鳴謝香港大學經濟金融學系陳卓謙同學協助收集及整理本文相關數據及圖表