Wheelock: The consolidation of the property market will see the rise next year.
Although the property market has recently shown signs of a correction, Wheelock believes that the property market is now in a “consolidation" stage. It is still optimistic about the property market next year. The market outlook is rising, but the increase may be worse this year. The group is expected to push 3 new discs next year, involving more than 2,100 people.
Huang Guangyao, managing director of Wheelock Real Estate, said in an exclusive interview that the property market has been plagued by three factors, including Sino-US trade war, interest rate hikes and stock market volatility, which has caused a correction in the property market. “Although the stock market is volatile, it has actually caused investors to refocus their focus on the property market. Although there has been a slight correction in property prices recently, it has reflected that the property price has a good resilience, due to the stable rental returns of the property." .
Next year’s property price increase is expected to be less than 10%
He believes that the property market is only entering a stage of consolidation. Huang Guangyao is still very optimistic about the prospects for the property market next year. The unemployment rate is low and the economic growth is good. On the other hand, the property market also has strong rigid demand. Therefore, it is believed that property prices will rise steadily next year, but the increase may be less than 10% this year.
He is particularly optimistic about the prospects of the luxury residential market, because the strength of luxury home buyers. As for small and medium-sized markets, boarding passengers are more affected by the market sentiment. He expects the property market to gradually release purchasing power early next year, when the market will become more active.
Cannes Phase 7 Sales in two phases
Next year, the group will launch three new projects, involving a total of more than 2,100 people, of which the third phase of Sunrise Kangcheng will be subdivided into two phases. The first phase has applied for pre-sale of uncompleted flats, a total of 616 people, ranging from 1 to 3 bedrooms, with an area of about 300 to 800 square feet. The base of the project has a shopping mall, which is also the first large shopping mall in Sunrise Kangcheng. As for the second phase, it is expected to be launched in the second half of next year, involving about 500 people.
Another large-scale new Kwun Tong Road project in Kwun Tong provides about 1,000 people. It is now carrying out foundation works. The project is diversified, including 1 to 4 rooms. It is expected to sell in the second half of the year. Since there have been no new projects launched in the district for many years, I believe that the project will be sold in the future and will be well received by the district.
As for the new luxury residential building at 77 Peak Road, it is planned to be sold as a current building in the middle of next year. It will provide 8 bungalows with an area of about 6,000 to 8,000 square feet.
He pointed out that although the government introduced the vacant tax earlier, the details have yet to be implemented, but he believes that the impact on the market is not too great. Taking the Group as an example, most of the new discs have sold more than 90% of units in the uncompleted phase, which has little impact on first-hand pricing.
Summarizing the year-to-date, the Group’s sales performance is very satisfactory. The Group’s new sales are all hot. In terms of residential properties, the largest contribution is MALIBU and Tsim Sha Tsui MOUNT NICHOLSON in Tseung Kwan O, and the industrial and commercial properties are also selling the shopping malls of Tseung Kwan O 3 new flats. Out, a total of about 28 billion yuan. The residential units involved about 2,000 people, and the cash amount set a new record for the group. It is expected to reach 30 billion yuan by the end of the year.