Property prices in Hong Kong rebounded by 1% in April, ending a three-month decline in a row, but property prices turned down again in May.
According to the Rating and Valuation Department, the price index of private residential properties was 384.4 points in May, down 0.34% month-on-month and down 2.41% year-on-year. The first five months of this year also fell by 2.41%.
By unit type, the property prices of small and medium-sized units (types A, B, C) fell by 0.44% month-on-month and 2.4% year-on-year; the property prices of large-scale units (types D, E) rose for 2 consecutive months, up nearly 1.6% month-on-month %, down about 2.9% year-on-year.
If further subdivided into different types of units, the three types of small and medium-sized units all fell on a monthly basis, among which type B units (431 to 752 square feet) fell the most at 371.1 points, a monthly decrease of about 0.62%, and a cumulative decline of 2.68% this year , down 2.01% year-on-year.
Next came the C-type units (753 to 1,075 square feet) at 340.7 points, down 0.29% month-on-month, down 1.53% this year and down 1.59% year-on-year.
The smallest class A unit (431 square feet or less) reported 425.1 points, down 0.21% month-on-month, down 2.25% this year, and down 3.19% year-on-year.
Rent index flat in May, down nearly 3% this year
In terms of large units, Class D units (with an area of 1,076 to 1,721 square feet) increased by 1.42% month-on-month to 321.7 points, but fell 3.01% this year and fell 2.78% year-on-year. feet or above) was reported at 313.7 points, up 2.02% month-on-month, but the number of transactions was less than 20.
In addition, the Hong Kong private residential rent index in May was unchanged at 177.3 month-on-month, down about 0.6% year-on-year.
Overall rents fell by nearly 3% in the first five months.
Wang Zhaoqi, Director of Knight Frank, Head of Research and Consulting in Greater China.
Knight Frank: The launch of new properties accelerates the pressure on second-hand property prices
Wang Zhaoqi, director of Knight Frank and head of research and consulting in Greater China, said that although the official property price index in May fell by 0.3% month-on-month, as the official index mainly reflects second-hand property prices, and the current accumulated purchasing power in the market needs time to release, new properties In the short term, there will be competition with second-hand properties, which will put pressure on second-hand property prices in some areas.
In the past month or two, the property market has begun to stabilize after the government has relaxed anti-epidemic measures. If there is no large-scale outbreak of the epidemic and the restrictions on epidemic prevention are tightened again, the sentiment of the property market will be significantly reversed in the second half of the year.
He also pointed out that developers have recently accelerated the pace of launching new projects. He believes that in the second half of the year, there will be an average of 1,500 to 2,000 first-hand transactions per month, but he believes that the opening prices of new projects will not be too aggressive.
It is also expected that as the unemployment rate begins to fall, residential rents may stop falling in the short term and stabilize slightly in the second half of the year.
Regarding the interest rate increase, Wang Zhaoqi believes that although the major banks in Hong Kong have the opportunity to increase the prime interest rate in the second half of the year, it will only affect a small number of people who get on the bus or fail the bank stress test due to the increase in interest rates, but it will not affect the overall purchasing power of the market. big.
Hong Kong's first four months of private property completions increased by 1.4 times year-on-year to 9,979 units The vacancy in Kowloon City has soared by nearly 4,000 units. Difference Estimation Department: Last year, 558 units of nano-buildings were completed, which fell by more than 40% during the peak period.
