In the first half of the year, the turnover of industrial and commercial shops fell by 50%.
The Sino-US trade war continues to affect the Hong Kong economy, and the industrial and commercial market is not immune. Midland Industrial and Commercial Stores said that in the first half of the year, the trade in the industrial and commercial shops market slowed down noticeably, and there was a “price drop" situation. However, the second half of the year is expected to develop steadily. The rental price is expected to be flat and the transaction volume is expected to rise by about 5%.
Midland Industrial and Commercial Stores said that due to external economic factors, the overall industrial and commercial market trading volume slowed down significantly in the first half of the year. The total number of industrial and commercial shops was 2,900, down 46% from the same period last year, and the turnover is expected to reach RMB 69 billion. It fell by nearly 50% year-on-year, and there was a “price drop".
Mainland tightening funds, Chinese capital slows down
In the shadow of the trade war, the mainland has further tightened capital outflows. The pace of Chinese capital entry has slowed down. Among the known billion-dollar buyers in the first half of the year, Chinese capital only involved about 5 billion yuan, compared with 400 in the same period last year. The substantial decrease in the amount of 100 million yuan was one of the reasons for the “price drop" in the industrial and commercial market in the first half of the year.
However, the Midland Industrial and Commercial Store believes that the market conditions of industrial and commercial shops in the second half of the year are expected to pick up. Huang Hancheng, chief executive of Midland Industrial and Commercial Services, believes that although the trend of Sino-US trade war will continue to affect the performance of the investment market, Brexit will also aggravate market uncertainty, but local political disputes will gradually subsidize, market conditions are clearer than before, and market hot money Ample, the Fed also has the opportunity to cut interest rates this year and stop shrinking, and the mainland has a chance to release water again due to the deterioration of the trade war, which will benefit the development of the industrial and commercial market. In the second half of the year, the overall industrial and commercial shop volume is expected to rebound by about 5%, especially for commercial buildings. In the market, as there are a number of commercial buildings in the second half of the year, it is expected that the volume of the sector will increase significantly.