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The Role of Economic Changes in Commercial Real Estate Investment in Hong Kong

Hong Kong - economy and property investment

The economic status of Hong Kong has a huge impact in determining the growth and prosperity of real estate market in the country.  A good economic climate encourages the growth of the property market; while on the contrary, a non-supportive economy derails the progress of the property market. Moreover, all sectors of the economy that have a direct effect on the economic status of the country and consequently an impact on the real estate industry. This means that the property market will be potentially affected by any changes in government regulations & political policies, adjustments in financial policies, internal growth and development etc.

The property market of Hong Kong sets a good example that was hugely influenced by the financial crisis that affected Asian countries in 2007 causing a slump in the economy which eventually affected the real estate market for several years before the industry could be sustainable again. When a property market crashes, it leaves investors frustrated and worried hence making them too shy from investing in the property market. This calls for the necessary institutions involved to hastily formulate policies and make decisions that would revive the market and cushion investors from further losses. It should be noted that a crash in the property market can take several years before the market can get back on its feet as can be seen in the crash of the real estate industry of Hong Kong which hit the country in 2007 and took six years before it was finally contained in 2013.

Generally, the economic situation of a country is an important segment that enables the thriving and sustainability of the real estate industry in the country. The economic status may encourage investors to buy property and it is also responsible for de-motivating investors from investing.  The vertical of property investment that is most affected by changes in economic statuses is the Commercial real estate industry.

This is because successful commercial real estate investment is measured by the value of the investment as opposed to the returns on investment. Ideally, the terms of agreements in commercial real estate are significant in determining the value of the investment subject to the health of the economy. This cannot be more emphasized than by the very revelation that the commercial real estate industry is much fragmented and its value chain encompasses a diverse set of entities such as owners, financiers, engineers, contractors, asset managers, property managers, and designers just to mention a few. Essentially throughout the development lifecycle of a commercial property, a number of value chains must be involved and they include; the design phase of the property, operation phase and consequently the disposition phase. During the various phases, the value chain must be engaged with the involvement of either a single or multiple entities. For instance, during the operation phase, the entities involved in the value chains could comprise of property managers, owners, asset managers, tenants etc. Either of these entities is likely to be affected by any changes in the economy thus resulting in an impact in the investment. Additionally, the decisions made by the various entities, either as individual entities or together as a team during a real estate market crash will also impact greatly on the property market.

Therefore the current state of the economy in a given region is a valuable consideration that you need to understand in your real estate investment activities. It is prudent for you to factor in the health status of the economy before you make a real estate decision. There are several aspects of the investment that needs to be analyzed with regards to the economy.

Fluctuations of Interest Rates

Interest rates affect the prevailing value and performance of the property markets. High interest rates tend to weaken the value of property market while simultaneously affecting the performance of commercial real estate investments. Typically, as interest rates rise, it instills fear among investors who then lack the confidence needed in making investments. This, in turn, affects the market.

The reason can be attributed to the fact that rising interest rates usually affect the property capitalization rates as well as property valuations. The property capitalization rate is proportionate to the property's net operating income against the market value of the property. Therefore the cap rates will also rise when the interest rates rise. Since the capitalization rates are the most significant determinant used in the valuation and pricing of commercial real estate investments, an interest high rate depicts a decline in the value of a property and thus instill fear among investors who have to face the possibility of investing in a property whose equity is declining; this impact negatively on performance of the property market.

Financial stability

Financial stability refers to the economic conditions that support a financial system.  Generally, in economics terms, a financial system comprises of markets and market infrastructure as well as the market intermediaries involved in the market transactions. Therefore financial stability involves the resilience of the entities of the financial system to withstand economic shocks and market crashes without any formidable disruption in the effective transfer of savings to build productive effectiveness. It also takes to account the ability of the entities involved to continue with effective financial intermediation irrespective of any economic shocks to the financial system.

Yet, history has taught that interference of financial stability has a direct impact on the entities involved because of the fear of further shock. This is well demonstrated by the reaction of investors in assets markets in case of any changes that they feel may have a direct impact on the financial stability.

In such situations, the financial system fails to smoothly enable entities involved to transfer resources from savings to productive resources because of fear of losses. Moreover ascertaining the amount of risks involved and the ability of accurately value property assets becomes trickier since the financial system is not at a position to comfortably cushion it entities from the risk nor is it capable of absorbing the economic shocks that prevail.

It can be concluded that changes to the financial stability of a country have a devastating impact on the overall participation of real estate investment with a crash of the market discouraging investors from seeking investment opportunities thus leading to a decline of the property market.

Foreign policies on economic development

Different nations adopt various strategies to woo potential foreign investors such as through direct foreign investment policies.   The foreign policies that a country adopts and is inclined towards have a big implication on the real estate industry.  Most nations usually love to adopt sustainable foreign policies that encourage foreign investment which in turn promotes increased demand in the property market by increasing the vibrancy in the industry.  Foreign investments help to promote growth in the process of real estate property. It is worth noting that foreign companies that invest in the real estate industry seek to overcome the stagnation of local market by encouraging foreign investment in other industries thus boosting the growth and development of the real estate market.

An interesting fact to note is that foreign investment in the real estate market also helps to enforce the supply restrictions of real estate property due to the regulations that govern lands used or due to the scarcity of land. Supply restrictions have a major impact on regulating the supply in the property market which in turn keeps the supply on the check while enabling the market players to enjoy a growing demand which consequently results to the rise houses in the property market.

Therefore the policies that government adopts on foreign investment have a significant impact on the real estate industry and may either promote vibrancy in the market or they may influence the shrinking of the market. It is important for countries to adopt policies that promote a vibrant property market.

Global economic and political uncertainty

In the recent years, there has been a heavy uncertainty of the global property market which impacts most foreign investors. Some countries across the globe have recorded slow growth on its property market. This uncertainty has a direct effect on the economic statuses of the property markets in most countries where foreign investors have an influence in the markets. Investors are likely to shy away from investing because of market uncertainties. Moreover, most foreign investors are more likely to liquate their investment markets if they strongly feel that there are several potential risks of losses that may occur due to the economic situation of the control.

Changes in the political arena also have an effect on the vibrancy of the real estate industry. The recent Brexit incidence by the UK is an example of how political alterations can affect the market. There is the need for investors to hold onto their properties in the event that changes in the political regime affect the market. This is because the effects of the changes may be short-term and thus later the property market may resume back to normal.

Government policies

Enactment of government policies is likewise another element that can significantly affect property market. The taxes levied, and subsidies are examples of the ways the legislature can incidentally support interest for real estate investment for whatever length of time that they are set up. Monitoring current government motivating forces can enable you to decide changes in free market activity and distinguish conceivably false patterns. For instance, in 2009, the U.S. government presented a first-time homebuyer's duty credit to mortgage holders trying to kick off home deals in a languid economy (just the individuals who acquired homes between 2008-2010 are qualified). This duty motivation alone prompted 900,000 homebuyers to purchase homes. This was a significant sizable increment, albeit transitory, and without knowing the expansion was a consequence of the expense motivating force that led to the US property market bubble of 2008.

Ability of the Investment to Service Debts

Real estate investment usually requires huge funds. Therefore, most investors usually rely on financial lenders for credit to purchase a property or finance its renovations. The Servicing a credit when the economy is healthy can be easier. However, you need to forecast the state of the economy during the period that you will be servicing the credit. For instance, if the economy stagnates as it did back in 1997, there is a likelihood of an investment crunch as the property might be unable to services debts leading to huge losses.

It's imperative to take note of that as financing costs rise, the cost to get a home loan expands, along these lines bringing down request and costs of land. Notwithstanding, when we carefully examine at the effect of loan fees on a value speculation for example, a real estate investment trust (REIT), as opposed to on private land, the relationship can be thought of as like a security's association with financing costs. At the point when you complete paying the loan, the estimation of a security goes up in light of the fact that its coupon rate turns out to be more attractive, and when financing costs increment, the estimation of securities diminish. Additionally, when the loan cost diminishes in the market, REITs' exceptional returns turn out to be more appealing and their esteem goes up. At the point when loan fees increment, the yield on a REIT turns out to be less appealing and it drives their incentive down.

Capacity to Access Affordable Credit

Property investment can be tricky and costly if the credit that you access attracts high-interest rates. High interest rates are traits that are common in an ailing economy. It is essential to seek for a credit when the economy is healthy so that you can benefit by getting affordable credit at low interest rates.

Moreover, during an economic contraction, the prices of property might be cheaper and hence, if you have money for investment, then it is the right time to do so. On the contrary, avoid purchasing property when prices are high as you may buy an over-priced property with little return on investment.

Credit constraints on banks and existing over allocations to land creates worries about the size of return of the investment. Processing loan requests by different divisions of the economy cause instability over access to capital. Thus small investments in property, properties in auxiliary or tertiary markets, and properties with feeble borrowers, generous opportunity, high rollover of occupants in early years, or other hazard variables are as of now encountering a serious capital lack.

Cost Structure

Commercial real estate in Hong Kong usually attracts many expenses. Expenses cut into the profits hence reducing the return on investment. During contraction of an economy, expenses usually go up and can greatly reduce the returns of the investment. It is important to invest in a property that has little expenses over the costs. This saves you the worry of increased expenses in case of an economic crunch.

Public-private partnerships as well as associations with neighboring governments are being seen as potential supplements or trades for elected subsidizing of the up and coming era of required foundation upgrades and could cover a huge amount of money. Of conceded support of existing resources.

Conclusion

It is important for governments to promote a healthy economic status that helps the real estate market to thrive. The government has a duty of supporting the market through appropriate regulations that control the market and safeguard it from external interferences that could spell doom for the real estate market. The government has also got to promote better economic status through various government policies and legislations.

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  • Mr.
  • Mrs.

This data protection information applies to the use of the website https://www.engelvoelkers.com/hongkong/ (hereinafter referred to as “website”) and the Property Search App, a mobile application for property searches (hereinafter referred to as “property app”) and is valid from 25 May 2018.

The following information applies to both the website and the property app, unless expressly stated otherwise.

 

Engel & Völkers VJI Limited in its function of responsible authority (hereinafter also referred to as “Engel & Völkers”) informs its users that

by using the website, personal data about them will be processed, in particular:

●    personal data (e.g. e-mail address, first name, surname, title, address, telephone number – in the following “Data” or “Personal data”) provided by users at the time of registration on the website (e.g. in connection with contact requests and mailing of newsletters);

●    personal data transferred from the user’s internet browser each time the user accesses the website is stored within log files, also known as server logs. This data comprises: IP address (Internet protocol address) of the accessing computer; name of the accessed site; date and time of access; related URL from which the user accesses the site; number of transferred data items; status report of successful access; session ID number.

by using the property app, personal data about them will be processed, in particular:

●    e-mail address, first name, surname, title, address, telephone number provided by users at the time of sending an enquiry;

●    Whenever the app is accessed, the usage data of the respective app user is saved. This data comprises: operating system used and, if applicable, the browser type, current language setting of the smartphone, information about the Internet service provider of the user, name of the retrieved page and, if applicable, the origin page, date and time of retrieval, amount of data transmitted, status report on whether the retrieval was successful, session identification number.

Purpose of processing

Engel & Völkers, as a responsible authority,

processes the personal data of website users for the following purposes:

●    Fulfilment of user’s requests (legal basis is contract performance and the legitimate interest of Engel & Völkers in transferring contact requests within the Engel & Völkers Group to the appropriate company. The above “Engel & Völkers Group” comprises Engel & Völkers AG and its domestic and foreign associated companies in terms of the German Companies Act Sec. 15 ff, and the (master) licensees affiliated with this group of companies. A current listing of these licensees can be obtained here: https://www.engelvoelkers.com/de/unternehmen/standorte/);

●    The forwarding of e-mail newsletters on the company’s own offers and advertising by the company or third parties to the legally permissible extent or based on consent. (Legal basis is the legitimate interest of Engel & Völkers in direct marketing, providing this is in accordance with the data protection and competition rules);

●    Analysis of the website for determining user behaviour. (Legal basis is the legitimate interest of Engel & Völkers in analysing user behaviour on our website for the purpose of continuously improving this or adapting it to the interests of our users);

●    Identification and possible blocking of users who have installed a so-called adblocker and who thereby block advertising. (Legal basis is the legitimate interest of Engel & Völkers of providing users who do not block advertising with wholly or partially web-financed offers);

●    In order to prevent fraudulent activities or misuse on the website or in connection with the website and to observe the legal stipulations for safe websites. (Legal basis is the legitimate interest of Engel & Völkers in remedying errors, guaranteeing system security and identifying impermissible access or access attempts.)

The legal basis for the processing of personal data is GDPR Article 6(1)(a), if the processing is based on consent, Article 6(1)(b) if the basis for processing is a contractual relationship and Article 6(1)(f) if the basis is the legitimate interests of Engel & Völkers.

processes the personal data of property app users for the following purposes:

●      Fulfilment of the requests of the app users (legal basis of the data collection is the consent of the user in accordance with Art. 6(1)(a) EU General Data Protection Regulation (GDPR)). Analysis of the property app to determine usage behaviour (legal basis is the legitimate interest of Engel & Völkers in analysing user behaviour in our property app for the purpose of continuously improving this or adapting it to the interests of our users);

Nature of supply of personal data and consequences of objection

The personal data is voluntarily provided by users. They may freely decide whether to make personal data available to Engel & Völkers and may subsequently withdraw their consent from the processing of personal data which have already been made available. Withdrawal may mean that the Engel & Völkers website is no longer usable.

Processing methods

Users’ personal data may only be processed in case of need and processing will be performed electronically only, in particular by way of: gathering, registration, organisation, storage, consultancy, processing, amendment, selection, extraction, comparison, use, interconnection, access and communication, blocking, deletion and destruction of the data. Processing may be carried out electronically or non-electronically.

Access to data

The personal data is processed by Engel & Völkers and (in respect of individual items) particularly by

●    Employees (permanent employees such as job-holders and independent property consultants) and consultants authorised to administer the website and property app and provide the associated services;

●    Third-party supplier companies (e.g. IT service providers, hosting providers, etc.) to which Engel & Völkers has outsourced processing services as part of a job processing agreement.

Information about the data

As the responsible authority we are able to provide information about your personal data. However, this information may only be given for the following reasons:

·       In the case of fulfilment of legal obligations or obligations arising from regulations and guidelines under national or European laws.

·       For defence in court in the case of a legal dispute.

Disclosure of data

If your query relates to offers from other companies of the Engel & Völkers Group, Engel & Völkers transfers the personal data entered by you in this case to the respective company from the Engel & Völkers Group with your prior consent or on the basis of its legitimate interests.[A10]  Other than this, your personal data will not be disclosed by Engel & Völkers.

Disclosure of data in non-EEA countries

In principle, Engel & Völkers does not transfer personal data to non-EEA countries without your consent. The servers used by Engel & Völkers are located within the European Union.

If your query relates to companies of the Engel & Völkers Group outside the European Union, we communicate your data under your consent.

In cases where personal data is transferred to countries that do not offer the same level of protection as within the European Union and you have not expressly agreed to the transfer of your data to those countries by way of your consent, Engel & Völkers will ensure that certain contractual obligations under applicable data protection law (including the execution of standard contractual clauses approved by the European Commission) are agreed with each service provider, unless Engel & Völkers can invoke other legal grounds for the transfer of personal data.

Saving and deleting of data

Engel & Völkers saves personal data for the time necessary for achieving the purposes for which the data was gathered and processed, including any storage period stipulated under the applicable legislation (e.g. retention of bookkeeping vouchers) and in any case for a maximum of 24 months [A11] after the personal data was gathered.

Use of cookies

Use of cookies on the website

In order to improve website browsing, Engel & Völkers uses “cookies”. Cookies are small text files, generally consisting of letters and numbers, stored on the user’s web browser on their PC and containing pseudonymised data. Cookies allow a website to recognise the user’s computer in order to follow searches made on several pages of a website and to identify users who return to a website. Cookies may have technical, analytical or profiling purposes.

The direct and indirect cookies used by Engel & Völkers are summarised here: https://www.engelvoelkers.com/en-de/privacy-policy-ag/doc/ev_cookies_lp.pdf.

The website uses the following technical cookies:

For storing language selection _icl_visitor_lang_js, _icl_current_language, evlocale.For storing selection of measuring units engelundvoelkersconfig.For storing last search requests LAST_SEARCH.For storing the watchlist ID watchlist_id.For storing test reference within AB tests user_ab.For storing references to distributed systems in load balancers BIGipServergroup-rz-webfe-prod.

Engel & Völkers informs users that they may deactivate or remove cookies in their web browser by following the instructions on the following links:

●      Internet Explorer ((https://support.microsoft.com/en-gb/help/17442/windows-internet-explorer-delete-manage-cookies).

●      Mozilla Firefox (https://support.mozilla.org/en-US/kb/delete-cookies-remove-info-websites-stored).

●      Safari (https://support.apple.com/kb/PH19214?viewlocale=en_US&locale=de_DE).

The website also uses analytical cookies set by third-party providers, e.g. Google (see also provisions on use of analysis programs and tracking tools) and Adroll (https://www.adroll.com/de-DE/about) /Privatsphäre) and Haufe (https://de.onlinehelp.umantis.com/index.php/Cookies).

In more detail:

a)       Google Analytics

Engel & Völkers uses the web analytics service Google Analytics from Google Inc. (“Google”) for analysing the use of websites. The information generated by cookies about the use of websites is generally transferred to a Google server in the USA and stored there. Engel & Völkers uses Google Analytics solely with the extension "ga ('set', 'anonymizeIp', true)", in order to ensure that IP addresses are only processed in a shortened version and in order to prevent direct references to individual persons. Google may transfer data to third parties if this is prescribed by law or if third parties process these data on behalf of Google. Google will not publish the IP address of the user in connection with other Google data. Users may at any time prevent the recording and storage of data by Google Analytics, by installing a Google-approved browser plug-in which can be downloaded from the following link: https://tools.google.com/dlpage/gaoptout?hl=de.

b)       Universal Analytics

Engel & Völkers uses the Universal Analytics functions provided by Google. These functions allow Engel & Völkers to record and analyse socio-demographic data about users by means of a Google ID (if available) and by means of cookies generated by Google from advertising contents (DoubleClick). If a Google ID is available, the data controller will be able to record this data across all devices (e.g. if users have both a smartphone and a PC) for analysing visitor flows across all devices. Users may at any time prevent the recording and storage of data by Google Analytics by installing a Google-approved browser plug-in which can be downloaded from the following link: https://tools.google.com/dlpage/gaoptout?hl=de.

This website does not use profiling cookies.

Use of cookies and other tracking in the Property App

Engel & Völkers needs statistical information on the use of the Property App to make it more user-friendly. For this purpose, Engel & Völkers deploys the following analysis tools. The providers of the tools process data, where personal data are processed, as a processor in accordance with the instructions of Engel & Völkers.

To find out which other cookies the Property App uses click here: https://www.engelvoelkers.com/en-de/privacy-policy-ag/doc/ev_cookies_lp.pdf.

Google Analytics

Google Analytics is provided by Google Inc., 1600 Amphitheater Parkway, Mountain View, CA 94043, USA (“Google”). We use Google Analytics with the additional feature offered by Google to anonymise IP addresses: In this case, Google's IP address is usually already shortened within the EU and only in exceptional cases in the US and in any case only saved in abbreviated form. The privacy policy can be viewed here: https://privacy.google.com/businesses/processorterms/

                               

If you want to opt out of Google Analytics tracking, go to your system settings and disable Google Analytics access in the Tracking section of the “Engel & Völkers Property Search” app.

If you want to opt out of tracking Google Analytics on Android, go to the app settings and disable Google Analytics access.

HockeyApp

HockeyApp is provided by Microsoft (Microsoft Corporation, One Microsoft Way, Redmond, WA 98052-6399, USA). We use HockeyApp for error analyses and to improve the property app. If it crashes, the user may agree to submit a crash report to HockeyApp. A crash report includes information about the crash date and time, the affected software module, the operating system and language used, and the device type and IP address. The crash report will only be sent to HockeyApp once this has been specifically approved. The information contained in the crash report may be partially processed in the United States. HockeyApp is a service from Microsoft. Legal information about it can be found here: 

https://azure.microsoft.com/de-de/support/legal/.

The privacy policy can be viewed here: 

https://www.microsoft.com/de-de/privacystatement/OnlineServices/Default.aspx

Crashlytics

Crashlytics is an analysis tool offered and operated by Crashlytics Inc., based in Cambridge, MA, USA. Crashlytics generates crash reports, i.e. reports about malfunctions or failures of the app, where and in which context these have occurred, how many users of the app are affected, etc. Engel & Völkers uses these reports to detect malfunctions or failures to be able to react faster, more purposefully and more efficiently in the interests of the users and to be able to improve the app technically. For this purpose, Crashlytics, together with the user’s Symphony-related app ID, which can be deleted at any time, records data on the crash and on general data of the respective IT environment (in particular on the used device, the mobile service provider and the operating system). If personal or pseudonymous data is included, Crashlytics will delete it within seven days. This information will give Crashlytics and subsequently Engel & Völkers insight into whether and how the app works and is used, especially the malfunctions and failures that occur. Further information is available at try.crashlytics.com/terms/privacy-policy.pdf.

Links to social media pages

This website contains links to the main social media network sites (e.g. Facebook and Twitter). These are not embedded social media plug-ins, but a link through which no personal data is transmitted to the social media operators.

Rights of persons concerned

You have the right to information on the processing of your personal data (for example, the origin of this data, the processing purpose, the modalities of the data processing). Furthermore, on certain conditions, you are entitled, at any time, to object to data processing in the future, to limit it or to demand the deletion of the data. Finally, you can prevent the sending of advertising material or the implementation of market research or commercial communications at any time.

In summary, you have a right to

-       information,

-       correction,

-       deletion (or to be forgotten),

-       limitation of processing,

-       data portability,

-       objection to the processing of your personal data,

-       complaint to the supervisory authorities.

Please note that your right to deletion is subject to certain restrictions. For instance we need not or may not delete any data which we need to retain for a further period under a statutory retention period. Data needed by us for the establishment, exercise or defence of legal claims are also excepted from your right to deletion.

To exercise the above rights and to request information, users may write to the following e-mail address hongkongmmc@engelvoelkers.com[A12]  or postal address Engel & Völkers VJI Limited, [A13] Shop A, 95 Caine Road, Mid Level West, Hong Kong. Similarly, users may at any time withdraw consent to, correct and delete the processing of their data.

Contacts

The responsible authority for processing of data is Engel & Völkers VJI Limited, [A14] Shop A, 95 Caine Road, Mid Level West, Hong Kong. In the event of questions regarding our data processors, we are happy to make a current list of these available to you.

If you have a complaint regarding the way that we process your data, you have the opportunity to submit a complaint to the supervisory authority. This is: 

Free and Hanseatic City of Hamburg

Hamburg’s representative for data protection and freedom of information

Prof. Dr. Johannes Caspar

Kurt-Schumacher-Allee 4, 20097 Hamburg

Mailbox@datenschutz.hamburg.de[A15] 

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  • Mr.
  • Mrs.
Please enter the property information.

This data protection information applies to the use of the website https://www.engelvoelkers.com/hongkong/ (hereinafter referred to as “website”) and the Property Search App, a mobile application for property searches (hereinafter referred to as “property app”) and is valid from 25 May 2018.

The following information applies to both the website and the property app, unless expressly stated otherwise.

 

Engel & Völkers VJI Limited in its function of responsible authority (hereinafter also referred to as “Engel & Völkers”) informs its users that

by using the website, personal data about them will be processed, in particular:

●    personal data (e.g. e-mail address, first name, surname, title, address, telephone number – in the following “Data” or “Personal data”) provided by users at the time of registration on the website (e.g. in connection with contact requests and mailing of newsletters);

●    personal data transferred from the user’s internet browser each time the user accesses the website is stored within log files, also known as server logs. This data comprises: IP address (Internet protocol address) of the accessing computer; name of the accessed site; date and time of access; related URL from which the user accesses the site; number of transferred data items; status report of successful access; session ID number.

by using the property app, personal data about them will be processed, in particular:

●    e-mail address, first name, surname, title, address, telephone number provided by users at the time of sending an enquiry;

●    Whenever the app is accessed, the usage data of the respective app user is saved. This data comprises: operating system used and, if applicable, the browser type, current language setting of the smartphone, information about the Internet service provider of the user, name of the retrieved page and, if applicable, the origin page, date and time of retrieval, amount of data transmitted, status report on whether the retrieval was successful, session identification number.

Purpose of processing

Engel & Völkers, as a responsible authority,

processes the personal data of website users for the following purposes:

●    Fulfilment of user’s requests (legal basis is contract performance and the legitimate interest of Engel & Völkers in transferring contact requests within the Engel & Völkers Group to the appropriate company. The above “Engel & Völkers Group” comprises Engel & Völkers AG and its domestic and foreign associated companies in terms of the German Companies Act Sec. 15 ff, and the (master) licensees affiliated with this group of companies. A current listing of these licensees can be obtained here: https://www.engelvoelkers.com/de/unternehmen/standorte/);

●    The forwarding of e-mail newsletters on the company’s own offers and advertising by the company or third parties to the legally permissible extent or based on consent. (Legal basis is the legitimate interest of Engel & Völkers in direct marketing, providing this is in accordance with the data protection and competition rules);

●    Analysis of the website for determining user behaviour. (Legal basis is the legitimate interest of Engel & Völkers in analysing user behaviour on our website for the purpose of continuously improving this or adapting it to the interests of our users);

●    Identification and possible blocking of users who have installed a so-called adblocker and who thereby block advertising. (Legal basis is the legitimate interest of Engel & Völkers of providing users who do not block advertising with wholly or partially web-financed offers);

●    In order to prevent fraudulent activities or misuse on the website or in connection with the website and to observe the legal stipulations for safe websites. (Legal basis is the legitimate interest of Engel & Völkers in remedying errors, guaranteeing system security and identifying impermissible access or access attempts.)

The legal basis for the processing of personal data is GDPR Article 6(1)(a), if the processing is based on consent, Article 6(1)(b) if the basis for processing is a contractual relationship and Article 6(1)(f) if the basis is the legitimate interests of Engel & Völkers.

processes the personal data of property app users for the following purposes:

●      Fulfilment of the requests of the app users (legal basis of the data collection is the consent of the user in accordance with Art. 6(1)(a) EU General Data Protection Regulation (GDPR)). Analysis of the property app to determine usage behaviour (legal basis is the legitimate interest of Engel & Völkers in analysing user behaviour in our property app for the purpose of continuously improving this or adapting it to the interests of our users);

Nature of supply of personal data and consequences of objection

The personal data is voluntarily provided by users. They may freely decide whether to make personal data available to Engel & Völkers and may subsequently withdraw their consent from the processing of personal data which have already been made available. Withdrawal may mean that the Engel & Völkers website is no longer usable.

Processing methods

Users’ personal data may only be processed in case of need and processing will be performed electronically only, in particular by way of: gathering, registration, organisation, storage, consultancy, processing, amendment, selection, extraction, comparison, use, interconnection, access and communication, blocking, deletion and destruction of the data. Processing may be carried out electronically or non-electronically.

Access to data

The personal data is processed by Engel & Völkers and (in respect of individual items) particularly by

●    Employees (permanent employees such as job-holders and independent property consultants) and consultants authorised to administer the website and property app and provide the associated services;

●    Third-party supplier companies (e.g. IT service providers, hosting providers, etc.) to which Engel & Völkers has outsourced processing services as part of a job processing agreement.

Information about the data

As the responsible authority we are able to provide information about your personal data. However, this information may only be given for the following reasons:

·       In the case of fulfilment of legal obligations or obligations arising from regulations and guidelines under national or European laws.

·       For defence in court in the case of a legal dispute.

Disclosure of data

If your query relates to offers from other companies of the Engel & Völkers Group, Engel & Völkers transfers the personal data entered by you in this case to the respective company from the Engel & Völkers Group with your prior consent or on the basis of its legitimate interests.[A10]  Other than this, your personal data will not be disclosed by Engel & Völkers.

Disclosure of data in non-EEA countries

In principle, Engel & Völkers does not transfer personal data to non-EEA countries without your consent. The servers used by Engel & Völkers are located within the European Union.

If your query relates to companies of the Engel & Völkers Group outside the European Union, we communicate your data under your consent.

In cases where personal data is transferred to countries that do not offer the same level of protection as within the European Union and you have not expressly agreed to the transfer of your data to those countries by way of your consent, Engel & Völkers will ensure that certain contractual obligations under applicable data protection law (including the execution of standard contractual clauses approved by the European Commission) are agreed with each service provider, unless Engel & Völkers can invoke other legal grounds for the transfer of personal data.

Saving and deleting of data

Engel & Völkers saves personal data for the time necessary for achieving the purposes for which the data was gathered and processed, including any storage period stipulated under the applicable legislation (e.g. retention of bookkeeping vouchers) and in any case for a maximum of 24 months [A11] after the personal data was gathered.

Use of cookies

Use of cookies on the website

In order to improve website browsing, Engel & Völkers uses “cookies”. Cookies are small text files, generally consisting of letters and numbers, stored on the user’s web browser on their PC and containing pseudonymised data. Cookies allow a website to recognise the user’s computer in order to follow searches made on several pages of a website and to identify users who return to a website. Cookies may have technical, analytical or profiling purposes.

The direct and indirect cookies used by Engel & Völkers are summarised here: https://www.engelvoelkers.com/en-de/privacy-policy-ag/doc/ev_cookies_lp.pdf.

The website uses the following technical cookies:

For storing language selection _icl_visitor_lang_js, _icl_current_language, evlocale.For storing selection of measuring units engelundvoelkersconfig.For storing last search requests LAST_SEARCH.For storing the watchlist ID watchlist_id.For storing test reference within AB tests user_ab.For storing references to distributed systems in load balancers BIGipServergroup-rz-webfe-prod.

Engel & Völkers informs users that they may deactivate or remove cookies in their web browser by following the instructions on the following links:

●      Internet Explorer ((https://support.microsoft.com/en-gb/help/17442/windows-internet-explorer-delete-manage-cookies).

●      Mozilla Firefox (https://support.mozilla.org/en-US/kb/delete-cookies-remove-info-websites-stored).

●      Safari (https://support.apple.com/kb/PH19214?viewlocale=en_US&locale=de_DE).

The website also uses analytical cookies set by third-party providers, e.g. Google (see also provisions on use of analysis programs and tracking tools) and Adroll (https://www.adroll.com/de-DE/about) /Privatsphäre) and Haufe (https://de.onlinehelp.umantis.com/index.php/Cookies).

In more detail:

a)       Google Analytics

Engel & Völkers uses the web analytics service Google Analytics from Google Inc. (“Google”) for analysing the use of websites. The information generated by cookies about the use of websites is generally transferred to a Google server in the USA and stored there. Engel & Völkers uses Google Analytics solely with the extension "ga ('set', 'anonymizeIp', true)", in order to ensure that IP addresses are only processed in a shortened version and in order to prevent direct references to individual persons. Google may transfer data to third parties if this is prescribed by law or if third parties process these data on behalf of Google. Google will not publish the IP address of the user in connection with other Google data. Users may at any time prevent the recording and storage of data by Google Analytics, by installing a Google-approved browser plug-in which can be downloaded from the following link: https://tools.google.com/dlpage/gaoptout?hl=de.

b)       Universal Analytics

Engel & Völkers uses the Universal Analytics functions provided by Google. These functions allow Engel & Völkers to record and analyse socio-demographic data about users by means of a Google ID (if available) and by means of cookies generated by Google from advertising contents (DoubleClick). If a Google ID is available, the data controller will be able to record this data across all devices (e.g. if users have both a smartphone and a PC) for analysing visitor flows across all devices. Users may at any time prevent the recording and storage of data by Google Analytics by installing a Google-approved browser plug-in which can be downloaded from the following link: https://tools.google.com/dlpage/gaoptout?hl=de.

This website does not use profiling cookies.

Use of cookies and other tracking in the Property App

Engel & Völkers needs statistical information on the use of the Property App to make it more user-friendly. For this purpose, Engel & Völkers deploys the following analysis tools. The providers of the tools process data, where personal data are processed, as a processor in accordance with the instructions of Engel & Völkers.

To find out which other cookies the Property App uses click here: https://www.engelvoelkers.com/en-de/privacy-policy-ag/doc/ev_cookies_lp.pdf.

Google Analytics

Google Analytics is provided by Google Inc., 1600 Amphitheater Parkway, Mountain View, CA 94043, USA (“Google”). We use Google Analytics with the additional feature offered by Google to anonymise IP addresses: In this case, Google's IP address is usually already shortened within the EU and only in exceptional cases in the US and in any case only saved in abbreviated form. The privacy policy can be viewed here: https://privacy.google.com/businesses/processorterms/

                               

If you want to opt out of Google Analytics tracking, go to your system settings and disable Google Analytics access in the Tracking section of the “Engel & Völkers Property Search” app.

If you want to opt out of tracking Google Analytics on Android, go to the app settings and disable Google Analytics access.

HockeyApp

HockeyApp is provided by Microsoft (Microsoft Corporation, One Microsoft Way, Redmond, WA 98052-6399, USA). We use HockeyApp for error analyses and to improve the property app. If it crashes, the user may agree to submit a crash report to HockeyApp. A crash report includes information about the crash date and time, the affected software module, the operating system and language used, and the device type and IP address. The crash report will only be sent to HockeyApp once this has been specifically approved. The information contained in the crash report may be partially processed in the United States. HockeyApp is a service from Microsoft. Legal information about it can be found here: 

https://azure.microsoft.com/de-de/support/legal/.

The privacy policy can be viewed here: 

https://www.microsoft.com/de-de/privacystatement/OnlineServices/Default.aspx

Crashlytics

Crashlytics is an analysis tool offered and operated by Crashlytics Inc., based in Cambridge, MA, USA. Crashlytics generates crash reports, i.e. reports about malfunctions or failures of the app, where and in which context these have occurred, how many users of the app are affected, etc. Engel & Völkers uses these reports to detect malfunctions or failures to be able to react faster, more purposefully and more efficiently in the interests of the users and to be able to improve the app technically. For this purpose, Crashlytics, together with the user’s Symphony-related app ID, which can be deleted at any time, records data on the crash and on general data of the respective IT environment (in particular on the used device, the mobile service provider and the operating system). If personal or pseudonymous data is included, Crashlytics will delete it within seven days. This information will give Crashlytics and subsequently Engel & Völkers insight into whether and how the app works and is used, especially the malfunctions and failures that occur. Further information is available at try.crashlytics.com/terms/privacy-policy.pdf.

Links to social media pages

This website contains links to the main social media network sites (e.g. Facebook and Twitter). These are not embedded social media plug-ins, but a link through which no personal data is transmitted to the social media operators.

Rights of persons concerned

You have the right to information on the processing of your personal data (for example, the origin of this data, the processing purpose, the modalities of the data processing). Furthermore, on certain conditions, you are entitled, at any time, to object to data processing in the future, to limit it or to demand the deletion of the data. Finally, you can prevent the sending of advertising material or the implementation of market research or commercial communications at any time.

In summary, you have a right to

-       information,

-       correction,

-       deletion (or to be forgotten),

-       limitation of processing,

-       data portability,

-       objection to the processing of your personal data,

-       complaint to the supervisory authorities.

Please note that your right to deletion is subject to certain restrictions. For instance we need not or may not delete any data which we need to retain for a further period under a statutory retention period. Data needed by us for the establishment, exercise or defence of legal claims are also excepted from your right to deletion.

To exercise the above rights and to request information, users may write to the following e-mail address hongkongmmc@engelvoelkers.com[A12]  or postal address Engel & Völkers VJI Limited, [A13] Shop A, 95 Caine Road, Mid Level West, Hong Kong. Similarly, users may at any time withdraw consent to, correct and delete the processing of their data.

Contacts

The responsible authority for processing of data is Engel & Völkers VJI Limited, [A14] Shop A, 95 Caine Road, Mid Level West, Hong Kong. In the event of questions regarding our data processors, we are happy to make a current list of these available to you.

If you have a complaint regarding the way that we process your data, you have the opportunity to submit a complaint to the supervisory authority. This is: 

Free and Hanseatic City of Hamburg

Hamburg’s representative for data protection and freedom of information

Prof. Dr. Johannes Caspar

Kurt-Schumacher-Allee 4, 20097 Hamburg

Mailbox@datenschutz.hamburg.de[A15] 

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