Long-term rise in property prices to keep up with rent

The policy address allows unrated HOS flats to be let for rent below market capitalization, covering a maximum of about 9,000 flats. The market is worried about the impact on rents of private buildings. However, according to various market data, private rents in the short term still have the upward momentum.

Of course, the biggest increase in rents was driven by the rise in property prices. Earlier in the year, the Rating and Valuation Department announced the September index of private property prices, the latest being 340 points. The first nine months of this year saw property prices soar by 10.6%. Over the same period, the rent index of private flats was 186.5 points, up by 0.92% MoM, showing a slight increase. This year’s cumulative increase of 8.4% reflects that rent increases lagged property prices and rentals are still falling behind.

Habitat broke the ceiling frequently leased private premises

The HOS flat charter scheme, which is not covered by the land premium, is still under discussion and will not necessarily threaten the rent rents in private buildings in the short term. It is noteworthy that the rent of HOS flats which have been compensated for premiums in the recent period has also been raised sharply. Owners who have not replenished their premiums may not necessarily rent flat. Earlier, a Central Plains real estate research report pointed out that private rents rose, the number of HOS flats plunged. In the first quarter of 2016, HOS flats with a monthly rent of under $ 10,000 accounted for 42.3% of the total rental. However, the rent dropped to 11% in the third quarter of this year and 31.3% in the six quarters, reflecting the soaring HOS rents .

In fact, in recent months, the market continued to record public housing and HOS flat-roof construction costs, stimulating rents to rise. For example, a 213-square-foot mini-unit in Hing Ming Court, Habitat Sentinel, Tseung Kwan O, with a price of $ 3,325,000 at a price of $ 3,325,000 per sq. Ft. And a record high in H Ft. However, a flat of 216 sq ft in Tong Hut is rented for a monthly rent of $ 9,750 and leased for $ 45 per square foot, which is almost equal to the rent level of the prime office.

As for the private rental market, many front-line estate agents lament that in the past two years, the residential rental market is weak and the season is getting worse. In the past, after the peak seasons of the summer, there will be a noticeable drop in rents. However, as many blue-chip housing estates are still in their peak season today, rents have risen steadily. Take Tin Shui Wai, Kingswood Villas as an example. In October, a total of 56 rental transactions were recorded. Among them, 3 Central A apartments at Lehu Habitat with a usable area of ​​636 square feet belong to 3-room intervals and are rented at a monthly rent of 12,000 yuan. In October last year, the old lease of the flat was $ 11,000 a month, up 9%.

Tung Chung new drive plus large increase 50%

In addition, Tung Chung, which was once considered the hardest hit by the occupation of possession flats, has successively joined two large new housing estates, Eastern Link and Rising Sun, involving more than 2,800 flats. As a matter of fact, the strong rental growth in rental properties in the region markedly increased. As of the beginning of this year, Eastern Central had digested nearly 700 properties so far. In April last year, Hui 5 high-rise building B, the practical area of ​​974 square feet, belonging to 3 rooms with workers atrial septum, in March last year to lease 20,000 yuan monthly rent last month for tenants, the new rent rose to 30,000 yuan, an increase of up to 50%.

To sum up, property prices have been rising steadily in recent days. The government has not relaxed the plans for spicy schemes. Difficulty in getting on the train for young people can not be solved and more people are forced into the rental market. I believe the rent will still have some momentum in the short term.