Property prices in Hong Kong have continued to bottom out
The price per square foot of individual housing estates has fallen below the end of last year, especially in the New Territories East. The price per square foot in Taihu Garden and Xinfeng Garden in Tai Po has fallen by 9.8% and 8.8% respectively. The North Point City Garden and the Changsha Bay Yuqingxuan in the nine urban areas also saw annual price declines of 3.6% and 5.3%, reflecting the second-tier housing estates in the weak market, and the decline in property prices was much higher than the market.
According to the latest figures of the Central Plains City Leading Index (CCL), the price per square foot of individual housing estates has fallen below the level at the end of 2018, and concentrated second-tier housing estates in various districts. The decline in the East New Territories housing estates is generally more obvious, including the latest adjusted price per square foot of Tai Po Garden in Tai Po reported at 13,941 yuan, a temporary decline of 9.8% year-on-year; the new square garden price in the same district recorded an annual price of 11,322 yuan, a temporary decline of 8.8% year-on-year. In contrast, the leading estates in the leading estates have a strong resistance to falling prices. The latest price per square foot of the index housing estates in Tai Po Centre is 15,192 yuan, up 6.3% year-on-year. The latest adjusted price per square foot in Shatin City One is 17,129 yuan, which is nearly 14% higher than the end of 2018.
Kingswood Villas’ foot price dropped 3.2% year-on-year
The price per square foot of West Housing Estates in the New Territories is generally down. The hot spot in Tianshui Wai, Kingswood Villas, has been adjusted. The latest adjusted price per floor has temporarily decreased by 3.2% year-on-year. Yuen Long Centre was down 1.7% and Xin Tuen Mun Centre was down 1%. In the northern part of the New Territories, second-tier housing estates experienced a significant decline. The latest adjusted price per square foot of Sheung Shui Centre was reported at 14,308 yuan, a temporary decline of 6.1% year-on-year.
Kowloon second-tier housing estates were the first to return to the end of last year. Changsha Bay Yuqingxuan recently adjusted the price per square foot of 17,803 yuan, a temporary decline of 5.3% year-on-year, and Tokwawan Aoyun Peak temporarily decreased by 4.8% year-on-year. On the other hand, large housing estates are more resilient, and the price per square foot of Mei Foo Sun Chuen in Lai Chi Kok temporarily increased by 5.5% year-on-year; Laguna City Kwun Tong temporarily increased by 1.2% year-on-year.
The index housing estates on Hong Kong Island diverged from the second-tier trend. The latest adjusted price per square foot of Taikoo Shing Quarry Bay was 20,992 yuan, up 6% year-on-year. In contrast, the price per square foot in North Point City Garden and Hong Wan in Western District dropped by 3.6% and 3% year-on-year respectively.
Index price per square foot
Huang Liangsheng, senior co-director of the Central Plains Real Estate Research Department, said that with the adjustment of property prices, I believe that the price per square foot of other large housing estates has continued to decline. The price per square foot of Zhouhaiyi Peninsula temporarily increased by only 0.1% year-on-year; Xinghua Village in Chai Wan temporarily increased by 1.6% year-on-year. It is believed that the price per square foot of large-scale housing estates on Hong Kong Island will fall short of last year’s level.
Li Zhicheng, the chief executive of Hong Kong Real Estate, predicts that due to the weak factors in the property market, property prices will fluctuate within a narrow range next year, with a volatility of about 5%. If the social events subsided, and benefit from the relaxation of insurance, it is estimated that the number of second-hand registrations can reach more than 40,000 in 2020.