The social conflict triggered by the storm and the ongoing Sino-US trade frictions have brought Hong Kong’s economy into a technical recession and pressure on the property market
Liu Zhenjiang, managing director of Colliers Asia’s valuation and consulting services, predicted yesterday that the average residential property price will fall by 5% this year, and the rent will fall by 3%.
Liu Zhenjiang said that the low interest rate environment, relaxation of the first mortgage ceiling, tight supply and user demand are still good, so it is difficult for property prices to fall sharply.
No impact of pneumonia epidemic
Regarding the pneumonia epidemic, Deng Shuxian, director of the research department of Colliers International Hong Kong and South China, said that there has been no large-scale outbreak in Hong Kong. The government has also strengthened epidemic prevention measures and has SARS treatment experience in 2003. Therefore, I believe this year ’s market will The SARS period is good. Although rating agency Moody’s downgraded Hong Kong’s credit rating, she believes that the negative psychological impact of the move is far greater than the actual impact on property prices. In terms of office buildings, due to the continued trade friction between China and the United States, and the slowdown in expansion of domestic enterprises, it is expected that office rents will fall by 8% this year. Rents in Central / Admiralty were even weaker, falling 13.1%.
Street rents plunged 16%
As for front-line street shop rents, social conflict has weakened the retail industry, and luxury business operators are under more pressure. As a result, the bank expects first-line street shop rents to fall by about 16% this year, but the decline is lower than last year’s 21%.