The cost of building construction is cheap and expensive.
The investment market has slightly turned weak recently. The executive director of Colliers International Property Co., Ltd. believes that the property investment market is still stable on the basis of low supply and demand. Among the many properties, he is more optimistic about the industrial buildings, the price is cheaper and the space for transformation is large, and the market is expected to attract capital inflows.
The overall investment market is very prosperous this year. According to Colliers International, the total amount of transactions in the first three quarters of 2018 (over 100 million yuan) was 131.2 billion yuan, down 7.3% from the first three quarters of last year, which was 7.3 billion yuan. “Last year, Cheung Kong (01113) took out the Central Government Centre for $40.2 billion and pushed up the transaction volume. Therefore, the figures for the first three quarters of this year are definitely not worse than last year.”
Colliers International: Dealing or turning down in the fourth quarter
In the first three quarters of investment property figures, the turnover of car parks was the highest, amounting to 2.2 billion yuan, an increase of 4 times. The luxury residential market also increased from 11.2 billion to 24.5 billion yuan, an increase of about 119%. The performance was weak for office buildings. This year, it was 63.2 billion yuan, down about 23% from last year. He pointed out that “the funds in the first half of the year are still very abundant, and the foreign funds have also successfully raised funds. In the first half of the year, the luxury residential market was also sought after by mainland buyers.”
The recent investment market has slowed slightly, and Hong Kong has also raised interest rates for the first time in 12 years. He analyzed that the investment market is more sensitive to interest rates. “In general, housing is subject to interest rate hikes. Owners may have to pay more and less money, which is finer. For institutional investors, interest rate hikes will affect the rate of return. Investment interest will In addition, he noticed that the recent decline in the proportion of Chinese investment in Hong Kong is more or less affected by the government. “The desire to enter the market is still high. The biggest difficulty is that it is affected by the national policy. Funds may not be able to come to Hong Kong. Even though there are several unfavorable factors, he is still optimistic about the market outlook. “The trade war has an impact on the investment climate, but it does not necessarily affect the property market directly. The basic factors of the property market are still ideal, the funds are still very abundant, and the local veteran family has sufficient water. Looking for property investment. In addition, regardless of the shortage of supply in residential and commercial buildings, the demand is large and the supply is small, so that the property market will be stable, so the market outlook is not pessimistic, the fourth quarter may be slightly quiet, and the volume of transactions will fall.”
In the face of rising interest rates and lowering returns, he pointed out that the industrial market is the most worthy of optimism. Because it can be used for value-added, “investors must not only look at the rental returns. The market requirements must be able to add value and change the use. New ideas, such as new industrial buildings, activation, etc. In addition, with the high prices of various properties, there are still many industrial buildings with a price of 3,000 to 4,000 yuan, so it is most worthy of optimism.” In fact, the recent building The sales of the industrial buildings have improved. The Chinese-funded data center has purchased the entire industrial building of Lantian Street in Kwai Chung. The price of the building is about 4,000 yuan.
As for the Jiaxia and the bunk market, he believes that “the basic factors of Jiaxia are good, but the price has risen to a high level. Every 10,000 to 60,000 yuan, can it rise to 80,000 yuan and 100,000 yuan?” Differently, Jiasha depends on the return, so the short-term upside may not be large.” In terms of retail shops, he believes that the rebound in the core area is not high, and it is more cost-effective to select the shops in Minsheng District.