10/9/2018-5

Property prices are only fixed during the period

Under the dual influence of interest rate hikes and trade wars, the signs of second-hand property prices falling are becoming more and more obvious. Although the property price stopped rising, but the trading volume also dropped significantly, and there was a dry drop, so the property market is still early.

According to a research report by Li Jiage Real Estate, 25 property prices in 50 indicator housing estates in Hong Kong fell in August. From the data point of view, there is a downward trend in second-hand property prices. In fact, second-hand second-hand is very quiet in the past two months. The 50 indicator housing estates recorded only 291 transactions in August, down 31% month-on-month, and the most quiet month in nearly 30 months.

Trading volume plummeted, price fluctuations

The trading volume has plummeted, and it is easy to form a dry up or a dry down. Take the Daxing Garden in Tuen Mun, which has the largest decline in 50 housing estates. For example, only 2 transactions were made in August, with an average price of 11,151 yuan, down 9.8% from July. Although the two transactions represent a 10% drop in the price of the whole estate, the reference value is doubtful. In fact, in August, a low-rise unit in the housing estate changed hands at a price of $10,880, which lowered the price of the estate.

In view of the recent expansion of the bargaining space of second-hand owners, the market has occasionally recorded new high-priced transactions after the price reduction, reflecting that the market is in a good position, and the price fluctuations of individual housings with relatively low turnover are relatively large, which does not mean that prices have really fallen.

The Hong Kong Bank has a good chance to raise interest rates this month. It is expected that the overall second-hand trading will be low in the coming months. To judge whether property prices are turning, it will take two to three months to observe. The industry generally believes that the current price is only a step. In the consolidation period, the trend of price decline has not yet formed.