The general opinion in the first-hand market this year is that large units are more difficult to sell
It seems that all data show that the number of surplus units is rising in medium and large units with three bedrooms or more.
Let’s take a look at the private property price index of the Department of Valuation, which fell 1.34% month-on-month in the latest October, a 5-month losing streak, and a 5.2% cumulative decline. There was still a 4.6% increase in the first 10 months. Among them, according to the area of different units, the category D large units with a saleable area ranging from 1,076 to 1,721 square feet are the most severe, falling by 1.8% month-on-month. However, if 10 months of this year are recorded, the increase is 6.1%, and the trend is still running Win the market. However, luxury residential units with a saleable area of more than 1,722 square feet, although the monthly decline was only 0.76%, but due to the rapid decline in the previous months, the cumulative decline in the first 10 months of this year was 3.36%, belonging to various types of units The first of these was “seeing popularity”.
Some people believe that the economic climate is not good, and prospective buyers of medium-to-upper-price properties are more sensitive to social conflicts and prospects. They are cautious in entering the market, and the capital of Hong Kong properties in the mainland has been reduced. The threshold is still very high, and there has been no significant increase in the speed of circulation. I believe it is difficult to make a major breakthrough.
New homes with 3 bedrooms and 4 consecutive months of upswing
A recent research report by Zhongyuan Real Estate also shows that large units with more than three bedrooms have a lot of inventory. The attached table shows that by district, there are 894 new goods on Hong Kong Island, 3,408 in Kowloon, 2,953 in the East New Territories and 2,642 in the West New Territories.
It is important to note that the remaining volume of the three-bedroom units in the new market recorded an increase for the fourth consecutive month. In November, 449 new units were added, pushing up the existing remaining volume to 4,438, accounting for nearly 50% of the total remaining units in Hong Kong. It rose above 4,000 levels for the first time since a record in October 2017. Three-bedroom surplus supplies are concentrated in the New Territories, with 1,797 in the East New Territories and 1,229 in the West New Territories. There are also 1,369 in Kowloon and only 43 on Hong Kong Island.
Central Plains selected 120 project statistics from the new disks that were launched for the first time in 2016 and later; a total of 69,934 units. The amount of the order is based on the total number of units in the entire project. It is not the number of units on the price list. The total remaining volume after calculation is 9,897. In other words, the remaining goods in the three bedrooms accounted for a considerable proportion of the overall remaining goods.
4 rooms or more
Statistics for November 2019. By room type, there were 6,878 surplus units in the two-bedroom and three-bedroom units. Open-plan and one-bedroom new homes have accumulated 1,633 remaining stocks and four-bedroom or more stocks have accumulated 1,386. As noted above, in addition to three-bedroom homes, the most “shrimp” people bought four-bedroom or more valuable properties. There are also 1,386. If the surplus of three bedrooms is added, the total surplus will rise to 5,824. It is estimated that under the continuous downturn in the general environment, the biggest challenge in 2020 will be the sales of this large unit of inventory.