City's property market entering 'wait-and-see' period amid uncertainties

Hong Kong’s property market is estimated to be in a wait-and-see period in the second quarter as uncertainties in global trade and economy weigh, says Cushman & Wakefield.

The realtor also projects that the transactions for the month will slow down from March.

Both the trade volume and home prices will not be stabilized until the economy and stock markets could turn steady again and the US Federal Reserve could lower interest rates continuously, said Rosanna Tang, executive director and head of research at Cushman & Wakefield Hong Kong.

Tang revised the forecast about this year’s home prices to fluctuating around 3 percent from a 5 percent rally seen at the beginning of the year.

Edgar Lai, senior director of valuation and consultancy services, noted that the widened fall in stock markets will affect home transactions. Lai expects the smaller sized residential units will be the most traded for the rest of the year.

Hong Kong’s Grade A offices may see their rentals further decline as much as 9 percent, as many enterprises turn to a wait-and-see attitude amid an increasing supply and economic uncertainties, said John Siu, managing director and head of project and occupier services at Cushman & Wakefield Hong Kong.

STAFF REPORTER