Second-hand property prices of private properties in Hong Kong continued to be under pressure. According to the latest data released by the Valuation Department yesterday, the price index of private residential properties was reported at 368.2 points last month, down 2.26% month-on-month, falling for 3 consecutive months and hitting a new low of 3.5 years. more than 7%. The private property rental index rose for two consecutive months, and was last at 179.7 points, up 0.73% month-on-month. Chen Yongjie, vice chairman of Centaline Property Asia Pacific, expects the government to step up efforts to rescue the market, otherwise property prices may drop by another 3%. Lijia Court also expects that if there is no good news next month, the cumulative annual decline in property prices can reach 12%.
The Rating and Valuation Department announced yesterday that the private residential price index in August 2022 was 368.2 points, down 8.5 points, or 2.26%, from 376.7 points in July. It was a three-and-a-half-year low since March 2019. The biggest monthly drop in 45 months since December 2018.
In terms of the usable area of the unit, the property prices of small and medium-sized units between 431 and 752 square feet fell the most, down 2.38% month-on-month, followed by large units over 1,722 square feet, with a drop of 2.35%; and small units below 431 square feet also fell 2.29%.
The rental index rose for two consecutive months. The private residential rental index last month was at 179.7 points, up 1.3 points from July and up 0.73% month-on-month. In terms of usable area of units, the rental index for units below 1,075 square feet all recorded an increase, among which small units below 431 square feet rose by 1.18% month-on-month; while the rental index for units above 1,075 square feet decreased.
Both primary and secondary registrations fell sharply
According to Centaline Research, there were 8,882 first-hand private residential registrations in the first three quarters of this year, down 31% year-on-year; 24,952 second-hand private houses were registered in the first three quarters, down 41%; first- and second-hand private house registrations totaled 33,834, down 41%. 39%. In the first three quarters of this year, the Central Plains City Leading Index CCL also recorded a drop of nearly 8%.
Promote measures to reduce spicy food to save the market
Chen Yongjie, vice chairman of the Asia Pacific region and president of the residential department of Centaline Real Estate, pointed out that this time the VFD index only reflects the market conditions in August. Since Hong Kong raised interest rates for the first time in more than three years in September, the transaction volume of the property market is even more sluggish. It is believed that the index will continue to be sluggish. down. He also pointed out that the authorities’ relaxation of the “0+3” quarantine measures on arrival in Hong Kong and the lowering of the mortgage pressure test threshold may have a positive effect on the psychology of home buyers, but it is not enough to reverse the downward trend of property prices. The decline in the stock market also has a certain impact on the property market. pressure. He urged the government to step up efforts to rescue the market, including further easing entry restrictions, and reducing the sting of the property market, such as easing buyer stamp duties or opening investment immigration. He estimated that if the authorities launch economic revitalization or reduce the spiciness of the property market, property prices can bottom out in October, otherwise they are expected to drop by another 3%.
Chen Haichao, director of Ricago Real Estate Research, also predicts that as local banks successively increase H-rate capping rates, the market is worried that Hong Kong will officially start the rate hike cycle. Property prices in the third quarter are expected to fall by about 6% in a single quarter.
Looking forward to the fourth quarter, Chen Haichao pointed out that the market is concerned about the 20th National Congress of the Communist Party of China and the first policy address of the Chief Executive Li Jiachao, or there may be measures to revitalize the economy and improve the property market. The price drop is about 9%, otherwise the property price may fall by 10% to 12% in the whole year.
Zhuang Tailiang pointed out that if the mainland customs clearance, property prices are expected to reverse
Zhuang Tailiang, executive director of the Lau Chor Tak Institute of Global Economics and Finance at CUHK, pointed out that the future development of the property market depends on whether people and funds return to Hong Kong after the relaxation of anti-epidemic measures in Hong Kong, and whether the mainland will switch after the 20th National Congress. He believes that once the mainland clears customs, Hong Kong’s property price changes may even turn positive this year. As for the rent index on the contrary, he believes that due to the imminent start of the semester, demand from student tenants, coupled with rising wages and inflation, will drive up rents in Hong Kong.
He also pointed out that there is still a lot of funds in Hong Kong, and further customs clearance in the future will also increase demand, and the chance of a cliff-like decline in the property market is low. Consider buying a home.
Originally published on AM730 https://www.am730.com.hk/Local/A total of 6.52 drops this year-Second-hand property price index hits a 3.5-year low-Not reflecting interest rate hikes-May fall by more than 10% throughout the year/340625?utm_source=yahoorss&utm_medium=referral