One is too estimated that the price of small and medium-sized houses will fall by 10% next year.
The property market sentiment was not good. First Pacific Davis expected that the property market will continue to weaken next year. It is estimated that the price of small and medium-sized residential buildings will fall by up to 10%. However, office demand is not expected to be affected by the Sino-US trade war, and rents are still rising within 5%.
Chen Chaoguo, managing director of Savills Valuation and professional advisors, believes that the property market will be affected by three factors, including rising interest rates, Sino-US trade wars and reduced funds from the mainland, all of which will affect buyers’ desire to enter the market. As the property market fell back, the market demand shrank. “There were people who bought it before, but they fell on demand."
However, the developers are now strong in holding power. There will still be order pushes next year. They will not sell at a price. The price reduction will send a bad signal to the market. It is estimated that the prices of small and medium-sized residential and luxury properties will fall by 5% to 10% next year. .
Grade A commercial building rents rose 5%
In response to the fall in market conditions, developers are tending to pay a conservative bid, and land prices are estimated to be lowered. Many of the large-scale land parcels on the land sales of the Government have deterred individual small and medium-sized developers. They are expected to follow the old-fashioned mergers and acquisitions in the urban areas to increase the land bank due to lower risks.
Sheng Shimin, senior director of Savills Research and Consulting, pointed out that office rents rose more than expected in 2018, and overall Grade A office rents rose by 8%, which is better than the 5% expected at the end of last year.
If the trade war is moderated, the overall Grade A office rents are expected to rise by up to 5% next year, and the Grade A office rents in Central are growing within 2.5%. The expected selling price is stable.