This year, the new supply of luxury homes is less than 100
Jones Lang LaSalle’s latest “Residential Sales Market Report” predicts the completion of a luxury mansion (top, south, Kowloon Tong, Ho Man Tin and Mid-Levels) in 2019 (with an area of 1722 square feet or more) There will be less than 100 gangs, and the scarcity of supply will stabilize the price of traditional luxury residential areas in the quiet property market.
Jones Lang LaSalle’s property price index shows that the price of small and medium-sized residential buildings peaked in August last year and has fallen back by 4.2%, ending the 27-month continuous increase; on the contrary, the price of luxury homes was the fourth in 2018. The quarter was roughly flat.
The large-scale luxury residential transactions recently recorded in the luxury residential market include: Ho Man Tin Tianzhu sold its detached houses for 333.8 million yuan, while the independent bungalows at Yinjing Peak in Sai Kung also changed hands with 188 million yuan. In terms of unit price, the price of both transactions reached a record high in their respective regions.
Mo Kaijie, senior director of Jones Lang LaSalle Capital Markets Department, said: “The trend of property prices in the two residential markets is different. The buyer’s background is the main key. The luxury market is supported by financially strong buyers. Most of them are dedicated to investing in ideal housing. However, the small and medium-sized residential market is more sensitive to market sentiment. Buyers are more cautious in making purchasing decisions. Once the market conditions deteriorate, many buyers will immediately adopt a wait-and-see attitude to obtain higher discounts. Let and lower transaction costs.”
Luxury houses are expected to have strong resilience
He added: “Reviewing the property market’s turnaround in 2016, when the US Federal Reserve raised interest rates at the end of 2015 and the uncertainty caused by Brexit, the property market in Hong Kong was under pressure and property prices in the small and medium-sized residential market fell by 10%. %, while luxury property prices fell only 2%. Since the new supply of traditional luxury residential areas in 2019 is less than 100, this market may show better resilience during the current downturn, especially if the downturn is shorter than expected. mild.”
Ma Anping, head of Jones Lang LaSalle’s research department, added: “There is no doubt that the trade tension between China and the United States has intensified, and the uncertainties that may erupt have warmed up, which will drag down global economic growth and curb investment. Hong Kong is also unable to protect itself. The current market outlook is still largely determined by the Sino-US trade war situation, and the results will influence the market’s backward trend.”