The old building Zhou Ji: for flat over-rental advantage gradually lost

The United States announced an interest rate hike early Thursday morning, which means that the low interest rate environment has ended in the past. Even if Hong Kong only adds one or two times this year, and the actual interest rate has not reached 4%, the owners in the previous low-interest-rate environment used rent to offset the difference in mortgage supply. Will begin to narrow.

In the past, many US interest rate hikes in Hong Kong have been less because of the lack of money and bank flooding in Hong Kong. In view of the fact that there are too many funds flowing into Beishui in Hong Kong or in Europe and the United States, the banks have become more and more aggressive in the deposit and loan interest rates. The banking sector still focuses on business, preferring to earn less to meet the Hong Kong Monetary Authority’s spicy mortgage guidelines, forming a distortion of the property market. It appears that both sides of the stock market have yet to show signs of falling, and the bank’s heart of water is still strong. In order to avoid doing anything similar to deposits, we will not dare to forge ahead on interest-bearing concessions, or even do business in this book.

Markets have recently emerged as examples of landlords actively reducing rents due to renting. For example, Kai Tak Development Area where a number of new discs will be occupied in the next one to two years, the first occupation of Kai Tak 1, one is located in two low-floor F rooms with 507 usable square meters. Hey, the monthly rent is 16,000 yuan. The landlord purchased the property at about $7.404 million in September 2016. Based on the current rental level, the rate of return was about 2.6%.

According to information provided by the Rating and Valuation Department of the Rating and Valuation Department, the rental rate of return was maintained at 2.7% for 430 units or less in the previous month. However, for Class B properties (ie, 430 to 752 sq.ft.), the rental return rate has declined, and it has been decreasing since last year. 2.5 to 2.6%, which fell to 2.4% in January of this year; units in Type D (1,076 to 1,721 square feet) also fell from 2.2% last year to 2.1% in the previous month. Among the five types of properties, the return on the three types of properties declined. Market expectations have led to a decline in rental returns, which is related to the fact that the rent cannot catch up with property prices. As a result, the advantages of flat-rented flats are gradually lost.