Residential buying sentiment weakens in SeptemberBusiness | 30 Oct 2019 4:04 pm
Political uncertainty and an economic slowdown continued to dent residential market sentiment month, realtor Knight Frank says.
The latest Land Registry data shows that overall sales volume reached a new low thisi year, shrinking by 15.6 percent, month-on-month to 3,447 units in September.
The Special Rates on vacant first-hand private residential units proposed by the government has gone through the first reading in October. Supply in the leasing market is expected to increase, putting downward pressure on the rental market in the short run.
For the sales market, to avoid paying the tax, some developers implemented flexible and longer payment plans to attract potential buyers.
Meanwhile, the wea buyer sentiment was lifted after the Policy Address when the mortgage requirement for first time buyers were relaxed. Some homeowners in the secondary market have promptly revised their asking prices.
Knight Frank expects the various headwinds to continue to curb buyer confidence. Still, the new initiatives of easier mortgage rules should provide stimulus to drive property transaction prices and volume in the short term.