Property deals slide again

Finance | Kevin Xu 4 Oct 2019

Property transactions in Hong Kong fell by 20.7 percent month on month to 4,090 in September, the lowest so far this year, data from the Land Registry showed.

In the office leasing market, the availability rate in Central rose to 7.4 percent, the highest in around 14 years.

The turnover for all property units amounted to HK$36.4 billion. That was down by 14.2 percent from August and by 20 percent year on year.

For residential units, the number of deals declined by 15.6 percent month on month to 3,447, with the amount decreasing by 24.4 percent to HK$27.66 billion.

Sammy Po Siu-ming, chief executive of Midland Realty's residential division, expects 8,235 units in new projects to hit the market in the fourth quarter.

He also estimates the fall in property prices will slow down in the quarter as developers will continue to launch new projects at favorable prices.

In the primary market, CK Asset (1113) will upload sale brochures of Seaside Sonata in Sham Shui Po today.

The project provides 876 flats. About 75 percent of them are two-room units, ranging in size from 474 to 507 sq ft. The rest are three-room units, measuring between 695 and 786 sq ft.

Country Garden (2007) launched tenders for eight four-room apartments at Altissimo in Ma On Shan and is set to put 13 houses on sale at the beginning of next year. It has cashed in HK$3 billion after selling 372 units, or about 70 percent of the total 547 units.

Sun Hung Kai Properties (0016) will launch a tender for a 3,447-sq-ft house at Le Palais in Stanley on Tuesday.

Far East Consortium International (0035) is offering a decoration promotion and cash rebate for those who buy flats at its Manor Parc in Hung Shui Kiu through Centaline Property Agency.

In the office leasing market, the vacancy rate in Central rose to 7.4 percent in the third quarter, the highest since the fourth quarter of 2005, said John Siu, Hong Kong managing director of Cushman & Wakefield.

Average office rentals in the greater Central submarket fell 3.2 percent quarter on quarter, the biggest drop in seven years.

Average rents at office buildings in Hong Kong in the third quarter fell 2 percent quarter on quarter, says a report by Cushman & Wakefield.

It expects average rents in office buildings to decline by between 5 and 7 percent this year, and 7 and 9 percent next year.

Shop rents in Central and Causeway Bay are expected to fall by more than 10 percent.



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