Knight Frank: property prices are expected to fall 5% in the second half of the year
Affected by the warming of the Sino-US trade war, the property market has been more volatile recently. Knight Frank expects that the property price in the second half of the year will be recorded as a 5% decline. However, due to the significant increase in the first half of the year, the overall annual property price will continue to develop steadily.
Lin Haowen, executive director of the Laifang Executive Director, Valuation and Consulting Department, said that the property market performed well in the first half of the year, and recorded a 5% increase in the first quarter. However, due to trade factors and the external factors such as Brexit, the trading atmosphere has declined. In the first half of the year, the property market is expected to adjust by about 5%. Overall, the average residential property price is expected to remain stable throughout the year. First, the sales volume of second-hand residential houses reached 58,000 to 60,000, involving an amount of about 560 billion, a slight increase from last year. The market is dominated by the first-hand building. As for the luxury residential market, it is expected to record a 5% increase.
Affected by factors such as trade wars
He predicted that the supply of 100,000 homes will be maintained in the next five years, with an average of 20,000 units per year. The region is still dominated by Tseung Kwan O and Kai Tak Districts. The area below 700 square meters accounts for nearly 80%. Still sought after; as for land sales, he believes that the pace is still relatively slow, and it is expected that the land sales in the current fiscal year will reach 120 billion to 130 billion.
Expected to sell 60,000 homes throughout the year
The director of Knight Frank and the head of the research and consulting department of Greater China, Ji Yanxun, said that the economic growth in the mainland has been stable in the past six months, and the property prices in the first and second tier cities have been moderately increasing, and the regulation of the property market in some cities has gradually slowed down. The Bay Area Development Plan is expected to promote the development of the property market and the cross-border investment market. The relevant cities in the Greater Bay Area can record a 5 to 7% increase. In particular, Shenzhen property prices will continue to grow strongly and may catch up with Hong Kong within 10 years.
Mr. Liu Baiwen, Senior Director of the Commercial Department of Knight Frank Hong Kong, said that the office market was also affected by the trade war. Some merchants were temporarily suspended, and a small number of them were scattered from Hong Kong. The rental market was quiet and the trend of relocation to non-core areas continued. Office rents will fall by 1% to 4%. As office buildings in Kowloon are relatively competitive, although the increase will slow down, core rents are expected to increase by 1% to 3%.