The Sino-US trade friction has heated up, and the internal conflicts in Hong Kong have continued
Many analysts are bearish that property prices will fall this year. However, DBS still believes that property prices will rise throughout the year, and only the property price increase forecast will be lowered, from 8% in the whole year to 5%. DBS Hong Kong real estate industry analyst Qiu Zhuowen pointed out that since July, the second-hand market transactions have slowed down, the market is mainly holding a wait-and-see attitude, and luxury home buyers are also more cautious.
Hong Kong’s overall office vacancy rate reached 5.4%
Qiu Zhuowen believes that property prices have risen by 8% this year, but under the current market sentiment, it is expected to fall by 3% for the rest of the year, so the annual increase is 5%. He also said that the government changed the proportion of public and private housing to 7 to 3, resulting in a decline in the supply of private buildings. The land sharing pilot program launched last year is currently difficult to handle, or is therefore postponed. It is expected that the supply of private buildings will be in the next four to five years. Further reduction. In terms of office buildings, he said that Chinese companies have reduced their demand for office space in Central. As of the end of June, the vacancy rate rose to 2.3%. The overall office vacancy rate in Hong Kong also rose to 5.4%.
On the retail front, Mr Chuu said that the performance of the retail industry in Hong Kong was flat this year
The decline in June began to widen. I believe that there will be a double-digit decline in the coming months. The depreciation of the renminbi also hits consumer sentiment and, in addition to the impact of social conflicts, tourists and citizens will avoid or be unable to travel to major consumer areas. He expects that the negative impact of retail performance on rent sharing will emerge next year, and owners may experience downward rent pressure.