Calls from laid-off Cathay Pacific Airways Ltd (國泰航空) pilots began arriving at OKAY Property Agency Ltd (屋企) not long after the Hong Kong airline announced one of the biggest job cuts in global aviation.
The cull that affected more than 5,000 Cathay employees on Wednesday has forced some to find cheaper housing or leave Hong Kong altogether. It is a painful blow for one of the territory’s biggest workforces, and yet another hit for a property market under pressure from political turmoil and a COVID-19 pandemic-induced recession.
Vacancies for apartments priced at HK$65,000 (US$8,396) a month or more had already been rising in Discovery Bay, a neighborhood about 30 minutes from the airport that is home to many pilots, said Nina Schulte-Mattler, a senior manager in the residential division of OKAY Property.
Photo: AFP
In Tung Chung, another area popular among Cathay employees, about 60 renters have surrendered their leases over the past three months, said Joe Lee (李錦榮), a senior area sales manager at Midland Realty Ltd (美聯物業).
“I’ve never seen so many people giving up their rented apartments in my career,” Lee said. “Local crew members who were let go or had their salaries cut are terminating their leases.”
Rental prices in Tung Chung have slid 5 percent since the start of the year and might fall another 3 percent next quarter, Lee said.
The majority of rental demand in the neighborhood comes from airline crew members, employees with logistics companies, and other professionals related to aviation.
The industry is also well represented in Discovery Bay, popular for its tree-lined streets and waterfront apartments.
Some landlords in the area are now happy to find takers at HK$85,000 for properties previously going for HK$110,000, Schulte-Mattler said.
A few pilots who used to lease those high-end units have left Hong Kong for jobs elsewhere or retired early, she said.
Other landlords have downsized to the HK$40,000 to HK$60,000 price range, where demand is more stable, she said.
Senior employees of Cathay Pacific or its subsidiary Cathay Dragon (國泰港龍) can receive HK$60,000 to HK$100,000 in monthly housing allowances, said Rickie So (蘇志強), a property agent with Century 21 Newcourt Realty (世紀21新域地產) in Discovery Bay.
He has seen about 50 properties in that price range drop their rent by 15 to 20 percent in the past two months in anticipation of layoffs.
Further price cuts could start emerging in a couple of months, So said.
US sports leagues rushed to get in on the multi-billion US dollar bonanza of legalized betting, but the arrest of an National Basketball Association (NBA) coach and player in two sprawling US federal investigations show the potential cost of partnering with the gambling industry. Portland Trail Blazers coach Chauncey Billups, a former Detroit Pistons star and an NBA Hall of Famer, was arrested for his alleged role in rigged illegal poker games that prosecutors say were tied to Mafia crime families. Miami Heat guard Terry Rozier was charged with manipulating his play for the benefit of bettors and former NBA player and
The DBS Foundation yesterday announced the launch of two flagship programs, “Silver Motion” and “Happier Caregiver, Healthier Seniors,” in partnership with CCILU Ltd, Hondao Senior Citizens’ Welfare Foundation and the Garden of Hope Foundation to help Taiwan face the challenges of a rapidly aging population. The foundation said it would invest S$4.91 million (US$3.8 million) over three years to foster inclusion and resilience in an aging society. “Aging may bring challenges, but it also brings opportunities. With many Asian markets rapidly becoming super-aged, the DBS Foundation is working with a regional ecosystem of like-minded partners across the private, public and people sectors
BREAKTHROUGH TECH: Powertech expects its fan-out PLP system to become mainstream, saying it can offer three-times greater production throughput Chip packaging service provider Powertech Technology Inc (力成科技) plans to more than double its capital expenditures next year to more than NT$40 billion (US$1.31 billion) as demand for its new panel-level packaging (PLP) technology, primarily used in chips for artificial intelligence (AI) applications, has greatly exceeded what it can supply. A significant portion of the budget, about US$1 billion, would be earmarked for fan-out PLP technology, Powertech told investors yesterday. Its heavy investment in fan-out PLP technology over the past 10 years is expected to bear fruit in 2027 after the technology enters volume production, it said, adding that the tech would
YEAR-END BOOST: The holiday shopping season in the US and Europe, combined with rising demand for AI applications, is expected to drive exports to a new high, the NDC said Taiwan’s business climate monitor improved last month, transitioning from steady growth for the first time in five months, as robust global demand for artificial intelligence (AI) products and new iPhone shipments boosted exports and corporate sales, the National Development Council (NDC) said yesterday. The council uses a five-color system to measure the nation’s economic state, with “green” indicating steady growth, “red” suggesting a boom and “blue” reflecting a recession. “Yellow-red” and “yellow-blue” suggest a transition to a stronger or weaker condition. The total score of the monitor’s composite index rose to 35 points from a revised 31 in August, ending a four-month
RSS