DTZ Debt: Property prices rose again in the second half

DTZ yesterday said at a press conference on the review of the Hong Kong property investment market that Hong Kong’s residential property prices will increase by 5% to 8% in the second half of the year. The investment property market continues to grow, and is optimistic about the subdivided office market segments.

Tao Shenghong, Vice President of Greater China at DTZ, and Greater China Region, said that the active atmosphere of the property market in the first quarter of this year continued into the second quarter. The purchasing power of residential buildings remained strong, and most of the popular housing estates recorded prices in the first half of the year. The increase has exceeded expectations by 10%. Hong Kong’s Taikoo Shing property prices have risen by about 14% since the beginning of the year. In May, Kai Tak re-created the King of the New Territories, showing that the developers have confidence in the market outlook and that property prices are unlikely to be lowered in the short term.

Stamp duty limits expire one after another

Tao Yuhong pointed out that second-hand residential transactions continued to account for the majority in the second quarter, and accounted for 86% of total residential transactions in May. The reason was that in addition to the stamp duty measures, the deadlines for handoffs gradually expired, and many second-hand owners loosened and second-hand discs increased. Another reason is that in the rising period of property prices, people have a large demand for home ownership. Although the increase in the second half will be slightly slower, it is expected to be 5% to 8%, while the annual increase of about 20%.

In the investment property market, DTZ data showed that in the first quarter of the property investment market, 143 transactions worth 100 million yuan or more were recorded. This was the highest quarterly record in ten years, involving a total amount of 89.4 billion yuan, involving land transactions. Although the proportion is only 5%, the amount involved in land transactions accounts for 37% of the total amount. Although the second quarter has not ended, 95 large-scale transactions have been recorded, involving a total amount of $30.7 billion. It is expected that there will be 120 large-scale transactions in the quarter.