Continued months of demonstrations in Hong Kong have severely damaged the retail industry and made many shopping malls a battlefield
JP Morgan Chase released a new report to belittle the property market. It is expected that residential prices in Hong Kong will fall by 10% this year, mainly because unemployment may rise and bring lag The impact will trigger temporary negative emotions. At the same time, due to the setback in Hong Kong’s tourism industry, mainland consumption remains in the country, which is also putting pressure on local shop rents. It is expected that retail rents this year will fall by 20%.
Retail rents expected to fall by 20%
Motorola pointed out that, given the concerns over the Hong Kong economy, it is expected that residential prices may fall back by 10% in the short term and will be affected by the negative sentiment of rising unemployment. However, in the past decade, income growth and employment have not been the main factors driving house prices, but liquidity is the driving force behind it.
The bank believes that market sentiment will improve as more new properties are introduced to the market in the first quarter of this year
At the same time, due to the abundant liquidity of the system, low interest rates and the shortage of land supply for private housing, it is expected that the positive momentum of the Hong Kong residential market will probably return in the second half of this year.
The report said that the confidence of mainland tourists in Hong Kong has fallen and that the mainland will keep consumption in the country, and retail rents are expected to fall by 20% this year. Affected by the slowdown of the Mainland economy, rents in Central will fall by 15% this year.