The price of industrial buildings rose by 0.8% in the first half of the year.
The industrial market has performed steadily, and the sales price of industrial buildings in May rose slightly. According to the information from the Research Department of the Midland Industrial and Commercial Department, the overall industrial property price rose slightly by 0.8% month-on-month. However, the bank expects that the price of industrial buildings will fall in June due to the impact of the Sino-US trade war. The first half of the year is expected to be flat.
The Midland Industrial Property Price Index (MII), which reflects the 50 indicator industrial buildings, was 349.8 points in May, up 0.8% month-on-month. In terms of rent, the Midland Industrial Property Rent Index (MIRI) was last reported at 176.4 points in May, a slight increase of 0.6%. In the first five months of this year, the selling price and rental index rose by 0.2% and 1% respectively.
By region, there were 8 districts recorded an increase in May. Tuen Mun is the region with the largest increase. The price of industrial buildings is 3463 yuan, up 2.6% from April. The Liwan District also recorded a 1.2% increase, with the latest price of 4,313 yuan. Chai Wan, Cheung Sha Wan, Kwai Chung, Kwun Tong, Kowloon Bay and Wong Chuk Hang also recorded a decrease of less than 1%. According to the volume of transactions, due to the lack of new construction and dismantling projects in the industrial buildings in May, the number of registrations for industrial buildings fell. In May, 370 registered industrial and commercial transactions were recorded, down 32% month-on-month, and the amount recorded was about 2.541 billion yuan, a sharp drop of 69.6% month-on-month.
Midland’s Director of Industry and Commerce, Mr. Chen Weizhi, said that in the past few months, it has benefited from the two new industrial hotspots. The market has been active and attracted many buyers to invest in industrial buildings, which has increased the volume and price of industrial buildings. He continued to refer, but US President Trump suddenly announced in early May that the tariffs on Chinese imports were raised, the market conditions reversed, the stock market continued to fall, and the investment sentiment also weakened immediately, which made many investors take a wait-and-see attitude toward the market outlook. It is expected that the price of industrial buildings will drop slightly in June, and the total is expected to be flat in the first half of the year.