Category: RLT

Economy RLT

Hong Kong Commercial Property Market Outlook Remains Unfavourable

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HONG KONG, July 30, 2014 /PRNewswire/ — The Royal Institution of Chartered Surveyors (RICS) recently published the Q2 2014 RICS Global Commercial Property Monitor, showing that Occupier Sentiment Index (OSI) for Hong Kong’s commercial property market remains negative for the fourth consecutive quarter. Occupier demand continued to fall with the retail segment losing significant momentum, while office and industrial occupier demand remains stable. As a consequence of falling tenant demand and rising supply, rent value expectations at the three month time horizon were turning more negative. Investment sentiment, as reflected by the Investment Sentiment Index (ISI), remained in negative territory in Q2. With the recent retail sales and exports data surprising on the downside, GDP growth in Hong Kong has been disappointing. Indeed, the risks to the growth outlook remain ever present. RICS believes the growth trajectory is likely to continue to be bumpy in the second half as the global recovery will probably remain tepid. This will undoubtedly weigh on the commercial property sector.

Recent data indicates the short-term economic outlook for Singapore continues to to be relatively sluggish. Although the OSI remains in positive territory, it declined in Q2. Similarly, the ISI edged down over the quarter. Meanwhile, China is not looking particularly favourable, with the OSI and ISI falling into negative territory for the first time since 2009. By way of contrast, Malaysia’s OSI increased notably since Q1, climbing firmly into positive territory. In addition, the ISI also turned positive, for the first time since mid-2013, partly driven by domestic demand and growth in export according to the RICS. Furthermore, the OSI and ISI in Japan continued their upward trend, with both indicators posting another strong reading and remaining positive for the 12th consecutive quarter.

Turning attention elsewhere, the US results show an improvement on an already solid picture with growth in tenant demand, supported by a strengthening labour market, exerting upward pressure on rents. Likewise, respondents to the survey continue to post strong underlying results within the New Zealand, German and UK markets, with the buoyant OSI and ISI figures indicative of high confidence levels.

RICS Senior Economist Andy Wu, said: “In Hong Kong, rents in the central business district continued to struggle to show any significant growth in the second quarter, given a lacklustre employment market in the financial services sector and rising levels of available rental stock in the decentralized business districts. Our survey results also indicate that investors are still somewhat hesitant towards making a commitment in the commercial property and we expect the trend to continue for the time being.

The biggest threat to China, other than headwinds from a recurrence of tighter credit conditions, is the seemingly oversupply of offices and retail space which will put a strain on current rental values and prices during a period of fading interest from businesses and investors. We believe investment levels and transaction volumes will likely continue to be depressed through the reminder of the year. Nevertheless, acceleration of government reforms and measures aimed at stimulating the economy should offset some of the adverse market forces.

Interestingly economic optimism, thought gently fading, has continued to trigger strong demand for property space in Japan. It’s clear both foreign and domestic investors still see the value of Japanese commercial real estate and remain particularly enamored with the office, retail and industrial sectors. We believe this upward trend will unlikely reverse itself anytime soon and investment numbers will continue to uptick for some time to come.

Finally in Singapore, there are signs that economic uncertainty is starting to affect the commercial property sector. We believe in the short term real estate activity will remain relatively depressed due to ongoing economic challenges. That said, the fundamentals of the city state’s real estate market still look positive for the medium to long term as Singapore could continue to emerge stronger through a high level of transparency and a business-friendly set of policies.”

Notes to Editors:

RICS Occupier Sentiment Index (OSI): OSI is constructed by taking an unweighted average of readings for three series relating to the occupier market measured on a net balance basis; occupier demand, the level of inducements and rent expectations.

RICS Investment Sentiment Index (ISI): ISI is constructed by taking an unweighted average of readings for three series relating to the investment market measured on a net balance basis; investment enquiries, capital value expectations and the supply of distressed properties.

Net Balances: Net balance percents, or scores, are calculated by subtracting the numbers of respondents reporting ‘down’ from the number who reported ‘up’.

About the Survey: Available at www.rics.org/economics, the RICS Global Commercial Property Survey is a quarterly guide to developing trends in the commercial property investment and occupier market.

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About RICS & RICS Asia

RICS is the world’s leading qualification when it comes to professional standards in land, property and construction.

In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.

Over 118,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.

RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.

The RICS Asia supports a network of over 20,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.

The RICS Asia region covers national associations and local groups locating in Brunei, Japan, Malaysia, Singapore, Thailand, The People’s Republic of China and the Hong Kong SAR. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Kiribati, Laos PDR, Macao SAR, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.

Economy RLT

Investment Volume Reaches New High Post-DSD; Capital Values Resilient to Cooling Measures

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HONG KONG, July 29, 2014 /PRNewswire/ — Cushman & Wakefield, the world’s largest privately owned real estate services firm, today released a mid-year update on the Hong Kong investment and residential sales markets and the outlook for the second half of 2014.

Investment activity stabilizing, evidence of investors’ renewed confidence; capital values increase slightly in 1H 2014

The investment market ended the first half of 2014 on a high note, whereas second quarter investment volume totaled HK$22.7 billion, an increase of 61% quarter-on-quarter. First half investment volume across the five major property sectors including hotels totaled HK$36.8 billion, up from HK$26.9 billion in 2H 2013 or an increase of 37%. The rebound in investment volume in the second quarter was driven by investment in office properties, where the sale of One Bay East – East Tower to Citi for a record breaking HK$5.43 billion was accompanied by another large en bloc sale in Wong Chuk Hang (Cheung Kong’s project at 41 Heung Yip Road in Aberdeen). Office investment was also highlighted by purchases by end-users and the return of more long-term investors making purchases in Kowloon East and other non-core locations.

Investors have grown accustomed to the cooling measures, leading to stable investment in retail properties. There is a growing focus on non-core properties and emerging areas where upside potential is greater, especially in the midst of slower retail sales growth and easing rents in prime locations. Retail investment in the first half of 2014 was highlighted by the Link Reit’s disposal of four small-scale shopping centers and also strata sales of 8 Russell Street in Causeway Bay, which received a positive response from investors due its prestigious location. Sales of prime street shops slowed as the quarter progressed due to low yields and still high prices. Industrial investment also showed greater stability in the first half of 2014. After dropping slightly in 1Q 2014, industrial investment picked up in the second quarter as some pent-up demand was released due to improved investor sentiment. More investors returned to the strata market, while the sector is also seeing more purchases by long-term investors, end-users and those aiming to refurbish or convert the property’s use. Capital values of non-residential properties were relatively stable in the first half of 2014, whereas values of office, industrial and retail properties increased by 1% to 2%. Capital value growth was slightly higher in 2Q 2014 as compared to the previous quarter, attributed to the rebound in investor sentiment which has led to firmer asking prices. 

Kent Fong, Executive Director, Investment — Hong Kong, said, “More investors and owner-occupiers have adapted to the cooling measures and are making purchases for the longer-term. Rents for most properties are stable and interest rates remain low, meanwhile supply of quality assets is limited. Capital values have been resilient to the cooling measures and recent momentum in the residential sector, not to mention some record-breaking purchases in Kowloon East, is boosting investors’ confidence.”  

Residential sector resilient to cooling measures as sales reach a new high post-DSD; prices are on the rise

As the first half of 2014 came to a close, residential sales reached nearly 6,000 units in June, the highest monthly total since the introduction of Double Stamp Duty (DSD). Sales showed a steady improvement since April and after slight relaxation of DSD in May. Activity increases remained focused on primary properties with developers seeing brisk sales and some launches oversubscribed as they continued to offer discounts, stamp duty rebates and prices close to those of nearby second-hand properties. More recently, improved market sentiment has penetrated the secondary market, whereas more prospective buyers, including first-time purchasers, are targeting mid-priced flats. As a result, secondary homes sales also climbed to its highest level post-DSD in June, having reached 4,585 units. Secondary homes sales increased by 14% in the first half of 2014 as compared to the second half of 2013.

Strong sales in recent months has brought record high prices in some districts, notably in the New Territories. A new house in Tsuen Wan West transacted at HK$55,889 per square foot, while a flat at Mayfair by the Sea in Tai Po sold for HK$36,132 per square foot. Luxury residential prices dropped by 2.9% in the first half of 2014, but their decline has softened in recent months on the back of more stable demand. Outweighed by a quiet market in the first half of the second quarter, luxury residential prices dropped by 0.5% in 2Q 2014. Existing owners are still facing little pressure to sizably reduce prices due to their low holding cost and also more limited supply.   

Vincent Cheung, National Director, Valuation & Advisory — Greater China, said, “Developers will continue to expedite new launches in the second half of this year as the look to cash in on strong buyer sentiment and close the year with strong sales performance. Recently, owners in the secondary market have been more aggressive on asking prices, but buyers’ response has been more conservative. Overall home prices have been on the rise in recent months, proving resilient to the government’s efforts to cool the market. Strong demand for mid-priced flats will support further price growth of such properties in the second half of this year. Moving up the ladder to those properties priced at HK$10 million and above, I expect prices to be more stable.”

— END —

About Cushman & Wakefield

Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 250 offices in 60 countries and more than 16,000 employees.  It offers a complete range of services for all property types, fully-integrated on a global basis, including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $3.7 billion in assets under management.  A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge. In Greater China, Cushman & Wakefield maintains seven market-leading offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Hong Kong and Taipei. More information is available at www.cushmanwakefield.com.

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Economy RLT

Sluggish Demand Leads to Higher Vacancy and a Slight Drop in Both Office and Retail Rents

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HONG KONG, July 22, 2014 /PRNewswire/ —

  • Office leasing activities remained sluggish in the first half of 2014, leading to a 1.8% drop in overall grade A office rent.
  • Landlords will continue to show flexibility in their efforts to attract and retain tenants. As a result, rents are likely to drop by an additional 1% to 2% in the second half of 2014. Greater Central rents will be stable.
  • The retail sector continued to face headwinds with retail sales growth slowing markedly. Moderating sales performance and more cautious sentiment impeded retailers’ expansion in the first half of 2014.
  • Prime street shop rents eased by an average of 2.0% over the past six months; rents are likely to be stable or decrease slightly in 2H 2014. Local consumption is intact and the outlook remains generally positive.

Cushman & Wakefield, the world’s largest privately owned real estate services firm, today released a mid-year update on the Hong Kong office and retail leasing markets and the outlook for the second half of 2014.

Office leasing demand stays soft causing overall grade A office rent to ease slightly

Office leasing demand remained sluggish in the first half of 2014, whereas Grade A office net absorption totaled a modest 123,000 sq ft and only crossed into positive territory due to take-up in Kowloon East, primarily within new stratified buildings completed since late 2013. By submarket, leasing activities continued to gain momentum in Greater Central, as evidenced by positive net absorption of 120,500 sq ft, but remained subdued in other locations. Greater Central continued to see leasing demand being supported by mainland Chinese financials and tenants with smaller-sized requirements. For example, China Securities International recently expanded by a floor of 13,000 sq ft in Two Exchange Square earlier this year, while China United Credit Finance took a whole floor of 22,000 sq ft in Two Pacific Place. Foreign financials situated in the district are still tending to downsize (RBS in AIA Central) or relocate for cost savings (Wells Fargo moving from AIA Central to Three Pacific Place), but there were several instances of space upgrades (Banco Santander and Wellington Global Investment. moving from One Exchange Square to Two IFC; UOB consolidating from Landmark and Cosco Tower to Citibank Plaza). Tenants on 3-year leases expiring this year are facing market rents which are, on average, 20% lower than those under their current lease.

Wan Chai/Causeway Bay, Hong Kong East and Tsim Sha Tsui all recorded slight negative absorption of between 50,000 to 60,000 sq ft over the past six months due to higher availability and tempered demand as more occupiers have shelved their expansions or seek to consolidate their office space. These trends are becoming more prevalent in fringe-core and non-core office districts, where office rents are still at or near peak-levels. After dipping slightly to 5.0% in 1Q 2014, office availability rate climbed back to 5.4% in 2Q 2014. Both Wan Chai/Causeway Bay and Tsim Sha Tsui’s availability rates climbed to approximately 5.0% by mid-year, while availability in Hong Kong East, still the lowest at 3.2%, climbed to its highest level in two years due to some large tenants, such as Time Warner, Nokia, and Western Union releasing space into the market. In Tsim Sha Tsui, Deutsche Bank and Morgan Stanley in ICC consolidated operations which caused the district to experience the largest upswing in availability in recent months. Greater Central availability, which has stood at roughly 7.0% since 2Q 2012, remains the highest by district.

Overall grade A office rents dropped by 1.8% in the first half of 2014, led by a 5.5% drop in rents in Kowloon East. Kowloon East landlords are facing added pressure from new strata units put up for lease and also several new industrial revitalization projects to be completed this year whose low pre-commitment rates are indicative of slower overall demand. Rents inched upward by 0.7% in the first half in Wan Chai/Causeway Bay, but dropped mildly in other districts. Greater Central rents continued to hover around HK$96-97 per sq ft, on average. Gary Fok, Executive Director, Commercial – Hong Kong, said, “We anticipate that the Greater Central leasing market will continue to exhibit a stabilizing trend owing to a gradual improvement in demand. Availability will slightly ease and rents will remain stable over the next six months. Outside of Greater Central, demand has been sluggish with few tenants willing to expand or absorb relocation costs. Landlords will continue to show flexibility in their efforts to attract and retain tenants, most notably in Kowloon East where availability is higher. As a result, rents will drop by an additional 1% to 2%, but not more than this because availability is still at a healthy level, and there is a lack of new supply especially in core and fringe-core locations.”  

Sales slowdown urging caution, leading to slower brand expansion and a drop in rents

The retail sector continued to face headwinds associated with slower tourism growth and changes in visitor profile and spending in the first half of 2014. These factors, as well as a high base for comparison last year, caused the slowdown of retail sales to deepen. Total retail sales decreased by 0.2% year-on-year from January to May. The slight drop was led by the downturn in sales of watches and jewelry, which dropped by 14.3% after robust sales in mid-2013. Apparel and department stores sales and restaurant receipts all grew stably owing to intact local consumption.

Moderating sales performance and more cautious sentiment impeded retailers’ expansion in the first half of 2014. Luxury brands have stayed conservative, while watch and jewellery retailers notably cut back on new stores. Several leading local retailers announced lower sales during recent holidays and are also taking more cautious approaches. Despite the hurdles, Hong Kong has not lost a step as a leading retail destination in Asia, and, therefore, in its ability to attract new brands and support expansion of existing ones. As evidenced by recent activity, including Topshop’s and Esprit’s planned expansions and the entrance of J.Crew, renowned international brands are showing a long-term commitment to the market, which is also seeing a shift toward a more diverse offering of middle to high-end brands.

Vacancies in main streets have remained low, but have risen in 2nd and 3rd tier streets over the past six months. Prime street shop rents eased slightly in the first half of 2014, having dropped by an average of 2.0%. During the first half of 2014, average rental increment on renewals and new leases stood at approximately 40%, which is down from 60% to 70% growth during the same period last year. In the second half of 2014, we expect that prime shop rents will be relatively stable, potentially falling by 2% to 3%, while more secondary locations will see a slightly steeper adjustment of 5% to 8% due to higher vacancy and slower demand. Michele Woo, Executive Director, Retail – Hong Kong, said, “Luxury brands have turned more cautious as sales growth has slowed amid the shift toward more affordable luxury and mid-priced goods. Their slower expansion has opened some doors for more mid-tier brands, but they also operate under tighter margins, therefore, their real estate affordability is comparatively lower and this will have an impact on rents. Nonetheless, the outlook for the sector is still positive. The local consumer base remains strong and tourism is still growing at a high rate. Hong Kong will maintain its position as the premier shopping destination in Asia and this will continue to bring new brands to the city.”

APPENDICES

I.     GRADE A OFFICE LEASING TRANSACTIONS

Date

Tenant

Building

District

Area (sq ft)

Reason for Lease

Existing Address

2Q

United Overseas Bank

Citibank Plaza

Greater Central

33,500 (L)

Relocation & Consolidation

COSCO Tower & Landmark

2Q

China UCF Group

Two Pacific Place

Greater Central

22,100 (L)

Relocation & Expansion

Hutchison House

2Q

Nissan

Hopewell Centre

Wan Chai/ Causeway Bay

46,000 (L)

Relocation & Expansion

Citibank Tower

2Q

Wells Fargo

Three Pacific Place

Wan Chai/ Causeway Bay

32,000 (L)

Relocation

AIA Central

2Q

Societe Generale

Three Pacific Place

Wan Chai/ Causeway Bay

16,300 (L)

Expansion

Three Pacific Place

2Q

FWD

Devon House

Hong Kong East

27,000 (L)

Expansion

Devon House

2Q

Compass Office

Silvercord Tower 2

Tsim Sha Tsui

11,500 (G)

Expansion

N/A

2Q

E. Sun Commercial Bank

The Gateway Tower 6

Tsim Sha Tsui

7,400 (G)

Expansion

The Gateway Tower 6

2Q

National Investment Fund

Octa Tower

Kowloon East

23,800 (G)

Expansion

Great Eagle Centre

2Q

Sainsbury’s Asia

Millennium City 1

Kowloon East

21,400 (G)

Relocation

The Gateway Tower 1

1Q

Wellington Global Investment

Two IFC

Greater Central

23,000 (L)

Relocation

One Exchange Square

1Q

Banco Santander, S.A.

Two IFC

Greater Central

18,400 (L)

Relocation

One Exchange Square

1Q

HK Sanatorium & Hospital

One Pacific Place

Greater Central

39,000 (L)

New Set Up

N/A

1Q

Principle Insurance

Hopewell Centre

Wan Chai/ Causeway Bay

16,400 (L)

Expansion

Hopewell Centre

1Q

Facebook

One Island East

Hong Kong East

11,000 (L)

New Set Up

N/A

1Q

Medisun Co.

Octa Tower

Kowloon East

46,200 (G)

Expansion

Great Eagle Centre

1Q

Compass Office

Langham Place Office Tower

Kowloon West

17,400 (G)

Expansion

N/A

1Q

Sun Life Financial

Two Harbourfront

Kowloon Others

22,000 (G)

Expansion

Two Harbourfront

II.  MAJOR OFFICE SUPPLY

Completion

Project Name

District

Developer

NFA (sq ft)

Single Owner / Strata-Title

2014

33 Des Voeux Road Central

Greater Central

Bank of East Asia

53,500

Single Owner

Billion Plaza II

Kowloon West

Billion

166,200

Strata-Title

Pioneer Place (revitalized ind bldg)

Kowloon East

Pioneer Global

184,300

Single Owner

KOHO (revitalized ind bldg)

Kowloon East

Pamfleet

157,500

Single Owner

KC100 (revitalized ind bldg)

Kowloon West

Campell Group

157,500

Single Owner

Octagon

Kowloon West

K Wah

296,700

Single Owner

Sub-total:

1,015,700

2015

50 Wong Chuk Hang Road

Hong Kong South

SHK

68,000

Strata-Title

41 Heung Yip Road

Hong Kong South

Cheung Kong

186,800

Single Owner

2-12 Observatory Road

Tsim Sha Tsui

Lai Sun & Henderson

139,700

Single Owner

10 Shing Yip Street 

Kowloon East

Billion

198,300

Strata-Title

15-17 Chong Yip Street

Kowloon East

Billion

201,500

Strata-Title

52-56 Tsun Yip Street 

Kowloon East

Billion

297,700

Strata-Title

Manulife Tower (One Bay East – West Tower)

Kowloon East

Wheelock

409,600

Self-Use

Citibank Tower (One Bay East – East Tower)

Kowloon East

Wheelock

409,600

Self-Use

33 Tseuk Luk Street

Kowloon East

SHK

196,000

Strata-Title

Sub-total:

2,107,200

2016

Joyce Centre

Hong Kong South

Kwong Hing Investment

130,800

Single Owner

34 Wong Chuk Hang Road

Hong Kong South

K Wah

132,800

Single Owner

22 Des Voeux Road

Greater Central

Chinachem

65,400

Single Owner

10-12 Queen’s Road Central

Greater Central

SH Comm. Bank

106,200

Single Owner

Wing On Central Building

Greater Central

Chinachem

72,100

Single Owner

8 Cannon Street

Wan Chai/Causeway Bay

Phoenix

142,600

Single Owner

14-30 King Wah Road

Hong Kong East

Henderson

230,800

Single Owner

Goldin Financial Global Centre

Kowloon East

Goldin

681,900

Single Owner

2 Ng Fong Street

Kowloon East

Billion

251,200

Strata-Title

Hung Luen Rd. & Kin Wan St. (Two Towers)    

Kowloon Others

Wheelock

477,600

Strata-Title

On Kwan Street & On Muk Street 

Kowloon Others

Billion

281,600

Strata-Title

Sub-total:

2,573,000

2017

4 Yip Fat Street & 8 Heung Yip Road

Hong Kong South

SHK

117,600

Strata-Title

Asian House Redevelopment

Wan Chai/Causeway Bay

Chinachem

236,000

Single Owner

Somerset House Redevelopment

Hong Kong East

Swire

928,200

Single Owner

New World Centre Redevelopment

Tsim Sha Tsui

New World

637,100

Single Owner

Sheung Yuet Road & Wang Tai Road

Kowloon East

Pacific Investment

233,100

Single Owner

Wang Chiu Road & Lam Lee Street

Kowloon East

Swire

499,300

Single Owner

180 Wai Yip Street

Kowloon East

SHK & Wong’s

383,400

Strata-Title

On Yiu & On Kwan Street 

Kowloon Others

Billion

344,300

Strata-Title

Sub-total:

3,379,000

2018

Sunning Plaza Redevelopment

Wan Chai/Causeway Bay

Hysan

317,200

Single Owner

15 Middle Road Carpark Redevelopment

Tsim Sha Tsui

TBC

254,800

Single Owner

Wharf T&T Square Redevelopment

Kowloon East

Wheelock

447,000

Strata-Title

Hang Yip St. ,Yan Yip St. & Kwun Tong Rd.

Kowloon East

Mapletree

528,200

Single Owner

CSW Post Office Redevelopment

Kowloon West

First Group

135,500

Single Owner

Sub-total:

1,682,700

Grand Total:

10,757,600

*Note: The expected timeline is subject to changes

III.   MAIN STREETS RETAIL LEASING TRANSACTIONS

Date

Tenant

Location

District

Area (sq ft)

Retailer Type

2Q

Currency Exchange

Cannon Street

Causeway Bay

50

Currency Exchange

2Q

Prince Jewellery & Watch

Kai Chiu Road

Causeway Bay

400

Watch & Jewellery

2Q

Esprit

Leighton Road

Causeway Bay

7,000

Fashion

2Q

Pandora

Queen’s Road Central

Central

2,400

Accessories

2Q

Esprit

Queen’s Road Central

Central

17,900

Fashion

2Q

Chow Tai Fook

Haiphong Road

Tsim Sha Tsui

1,600

Watch & Jewellery

2Q

Sulwahsoo

Canton Road

Tsim Sha Tsui

700

Cosmetics

2Q

Chain Pharmacy

Park Lane

Tsim Sha Tsui

700

FMCG

2Q

Swatch

Sai Yeung Choi Street South

Mongkok

300

Watch

2Q

City Chain

Sai Yeung Choi Street South

Mongkok

1,400

Watch

1Q

Standard Chartered Bank

Russell Street

Causeway Bay

5,700

Banking

1Q

Tsui Wah

Lockhart Road

Causeway Bay

8,000

Catering

1Q

Samsung

Des Voeux Road Central

Central

6,000

Electronics

1Q

Marks & Spencer Food

Hollywood Road

Central

4,600

Grocery

1Q

Luk Fook

Canton Road

Tsim Sha Tsui

1,900

Watch & Jewellery

1Q

ISA

Carnarvon Road

Tsim Sha Tsui

10,800

Fashion

1Q

Innisfree

Granville Road

Tsim Sha Tsui

1,000

Cosmetics

1Q

Chow Tai Fook

Sai Yeung Choi Street South

Mongkok

4,800

Watch & Jewellery

1Q

Chain Pharmacy

Soy Street

Mongkok

900

FMCG
Economy RLT

E-House Launches Home Price Ratings Website

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SHANGHAI, July 17, 2014 /PRNewswire/ — E-House (China) Holdings Limited (“E-House” or the “Company”) (NYSE: EJ), a leading real estate services company in China, today announced the launch of its home price ratings website www.fangjiadp.com and related mobile app (“Fangjiadp“), both of which operate under the Company’s real estate information and consulting business unit, CRIC. The website and app currently cover more than 4,000 new residential developments in 21 cities, as well as more than 30,000 existing residential compounds in 5 cities in China.

Fangjiadp provides independent home price estimates, qualitative reviews, and ratings for primary and secondary market residential compounds. By entering an address (down to each individual apartment unit level) or compound name, consumers can instantly obtain the estimated market value of both new and previously-owned properties, as well as CRIC’s expert opinions on other aspects of the properties. Properties are rated as “strongly recommended buy,” “recommended buy,” “buy with caution” or “recommend waiting.” Once a consumer locates a property of interest, Fangjiadp will also list four similar properties in the area that are in the same price range so that consumers can compare estimated values and other aspects of the properties.

Xin Zhou, E-House’s co-chairman and CEO, said, “Fangjiadp is developed by highly experienced analysts with many years of industry knowledge and is backed by CRIC’s comprehensive and powerful real estate database. In addition to its wide and comprehensive coverage, Fangjiadp’s unique user interface allows consumers to conduct one-on-one conversations with CRIC’s home price analysts. We believe Fangjiadp brings a new experience and unique value to home buyers and sellers that has never before existed.  As part of our planned upgrade for Fangjiadp, consumers will be able to not only communicate with our home price analysts, but also write their own listing reviews while interacting with other consumers and industry experts to obtain relevant information and recommendations. For our CRIC unit, the launch of Fangjiadp represents the expansion of its customer base from what had historically been businesses and government entities to consumers, and illustrates its position as an independent and unbiased real estate information source.”

About E-House

E-House (China) Holdings Limited (“E-House”) (NYSE: EJ) is China’s leading real estate services company with a nationwide network covering more than 250 cities. E-House offers a wide range of services to the real estate industry, including online advertising, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion and real estate investment management services. E-House has received numerous awards for its innovative and high-quality services, including “China’s Best Company” from the National Association of Real Estate Brokerage and Appraisal Companies and “China Enterprises with the Best Potential” from Forbes. For more information about E-House, please visit http://www.ehousechina.com.

Safe Harbor: Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “may,” “intend,” “confident,” “is currently reviewing,” “it is possible,” “subject to” and similar statements. Among other things, the quotations from management in this press release, as well as E-House’s strategic and operational plans, contain forward-looking statements. E-House may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, including Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about E-House’s beliefs and expectations, are forward-looking statements and are subject to change. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements in this press release. Potential risks and uncertainties include, but are not limited to, a severe or prolonged downturn in the global economy, E-House’s susceptibility to fluctuations in the real estate market of China, government measures aimed at China’s real estate industry, failure of the real estate services industry in China to develop or mature as quickly as expected, diminution of the value of E-House’s brand or image, E-House’s inability to successfully execute its strategy of expanding into new geographical markets in China, E-House’s failure to manage its growth effectively and efficiently, E-House’s failure to successfully execute the business plans for its strategic alliances and other new business initiatives, E-House’s loss of its competitive advantage if it fails to maintain and improve its proprietary CRIC system or to prevent disruptions or failure in the system’s performance, E-House’s failure to compete successfully, fluctuations in E-House’s results of operations and cash flows, E-House’s reliance on a concentrated number of real estate developers, natural disasters or outbreaks of health epidemics and other risks outlined in E-House’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of this press release, and E-House does not undertake any obligation to update any such information, except as required under applicable law.

For investor and media inquiries please contact:

In China:

Investor Relations
E-House (China) Holdings Limited
Phone: +86 (21) 6133-3937
E-mail: ir@ehousechina.com

Mr. Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com

In the United States:

Mr. Justin Knapp
Ogilvy Financial, U.S.
Phone: +1 (616) 551-9714
E-mail: ej@ogilvy.com