A new pneumonia epidemic broke out in Wuhan
Colliers International believes that the current positive and negative factors for the economy coexist, but the political situation is still tense and affects the public’s desire to buy a home. It is expected that the general residential property price will fall by 5% and the luxury house price will fall by 10% during the year.
Liu Zhenjiang, Managing Director of Colliers International Asia Valuation and Advisory Services, said that the current positive and negative factors coexist, such as increased unemployment, trade wars and local political conflicts; and low interest rates, the relaxation of the first mortgage ceiling and rigid demand, etc. It is a favorable factor, but the political situation is always tense, which affects the public’s desire to buy a home, which puts pressure on property prices.
Expects no SARS decline
Regarding whether Wuhan pneumonia would cause a cliff-like decline in property prices, Deng Shuxian, director of research at Colliers International Hong Kong and South China, said that the epidemic had not erupted in Hong Kong, and that information was circulating compared to the SARS period.
However, due to the impact of social movements, the business environment has deteriorated, and the outlook for office buildings and shops is unlikely to recover this year. Wu Kaining, director of Colliers International’s retail service, said that the number of tourists dropped significantly, large chain brands reduced their vacancies, and the vacancy rate in the district rose. Yan Huiping, general manager of Colliers International’s commercial property services in Hong Kong, also predicts that overall office rents and core business district rents will fall another 8% and 13% this year. In addition, the price of warehouses will fall by 1% and rents will fall by 2%.
In addition, the social situation is turbulent and Sino-U.S. Trade relations are tense
Savills expects office rents to fall across the board this year. Among them, rents in core areas are expected to fall by 5% to 10%, and rents of non-core area Grade A office buildings are expected to fall by 10% to 15%. Tenants in areas such as Kowloon East and Tsim Sha Tsui are more focused on tourism and trade, and the reduction will be more significant.