27/2/2018-1

Doubtful index of property prices broken 15 consecutive months

The price of private residential flats continued to be broken. According to the latest statistics released by the Rating and Valuation Department (VID) in January this year, the overall selling price index of private residential flats reported 357.5, up 1.3% MoM, up 22 Month and 15-month breaking ceiling. However, rent diverged. In January, the overall rent index was at 186.5. Hang Seng rose 13-month-long and dropped 0.3% MoM. Analysts pointed out that the drop in rent or seasonal factors and the affordability of the public is overdrawn, but it may not reduce investors’ desire to enter the market.

The Dilution Agency announced yesterday that the price index of private residential flats in January this year was 357.5, up 1.3% from the 353 in December last year and rising for 22 months, a rise of about 31.7% and a continuous 15-month record New record.

Rental divergence 13 liters broken cable

However, the upward trend in the index of private housing rent over the same period was cut off. The latest index was 186.5 in January of this year, down 0.3% month-on-month from 187.1 in December last year. The index dropped for the first time after November 2016 and was suspended 13 consecutive months of upward momentum.

During the period, the unit rental indices of salable area below 1,722 square feet fell 0.1% to 0.43%. By district, Hong Kong Island saw the largest decrease in rent for large units with a usable area of ​​1076 to 1721 square feet. The average effective salable area rent in January was $ 38.1, down by about 8.5% from a month earlier in December of about $ 41.6. The decline was the largest since March 2014.

In January, the rent index turned lower. Knight Lim, Senior Director and Head of Valuation and Consulting, Lam Ho Man, said that this reflects the sharp rise in rents in recent years as property prices rise. However, the public is labor-intensive and can afford to be overdrawn, coupled with seasonal factors , So that the rent pressure down, but expected the next two to three months rent is expected to stabilize. Lin Hao-wen said that in recent years, the return on the purchase of flats for rent is not attractive, but “everyone is a means of appreciating the prices of flats," so I believe there is a limited impact on investors’ desire to enter the market.