Real estate market
Written by: Zhai Ziqian
2019-12-27 14:56
Last updated: 2019-12-27 14:56The residential rental market has weakened in recent months. Chen Haichao, head of the Real Estate Research Department at Ricardo Court, said that since the peak of rents in July, due to the impact of social movements and the off-season, the trend of rents has fallen for 4 months, and the market outlook is still downward. I believe there will be a chance of improvement after the Chinese New Year.
Based on the data collected by the Real Estate Research Department of Li Jia Ge, the weighted average real estate rent of 50 index housing estates in Hong Kong in November 2019 was reported at 36.05 yuan, which was another 1% decrease from 36.40 yuan in October. The nine-month low since the beginning of this month, and the cumulative increase in rents in the first 11 months of this year has further narrowed to about 0.6%, and rents for the whole year are likely to decline.
In November, a total of 773 cases of rental transactions were recorded in the index housing estates, a slight decrease of about 1% compared with 781 cases in October, and they hovered at a similar level in a narrow range for 3 consecutive months. As the transaction volume of the index 50 estates dropped by 25% in November, and the lease transaction volume in the same period was relatively stable, the proportion of the 50 index estates ’leases accounted for 61% of the overall transaction last month, an increase of about 6.9 percentage points month-on-month. .
Chen Haichao, head of real estate research at Ricardo Court, said the rental market will not improve until the Chinese New Year at the earliest. (Profile picture)
By area, the rents of the index housing estates in Hong Kong Island, Kowloon and the New Territories fell across the board last month. Among them, the weighted average real estate rents of 8 index housing estates in Hong Kong Island fell 1.3% month-on-month to 43.38 yuan; 21 index housing estates in Kowloon District The weighted average saleable square footage of the Court fell 0.8% month-on-month to 39.45 yuan; the weighted average saleable square footage of the 21 index housing estates in the New Territories reported 30.89 yuan, down 1% month-on-month.
Rents may fall another 1% in December
Chen Haichao pointed out that after entering the second half of the year, the market sentiment has deteriorated, rents and property prices have fallen together, and the overall rental market has been weak. Near the end of the year, rental activities are expected to become even more sparse. It is expected that the number of rental housing estates with 50 indicators in December may fall to a level of about 750. As for rents, which continue to be weak during the off-seasons during Christmas, New Year's Day, and the Chinese New Year, it is feared that they will fall another 1% in December to about 35.69 yuan. It is expected that the annual rent will fall by nearly 0.5%.
Leigh House Chen Haichao
