Media OutReach<\/a>
\n– 15 September 2021 – Global real estate services firm Cushman & Wakefield
\npublishes Hong Kong Residential Markets Review and Forecast 3Q 2021 today. With
\nthe purchasing power of the market unleashed at a certain level and consumed in
\n1H 21, available affordable units reduced, and diminished bargaining space for
\nowners, the transaction volume has displayed a downward trend.<\/p>\n![](\"https:\/\/images.media-outreach.com\/Thumb\/500x0\/177339\/C-W-image.png#image-177339\")
<\/p>\n
\n
Chart 1: Total S&Ps forecasted to hit 25,661 cases in 3Q<\/p>\n
Chart 2:\u00a0Residential S&Ps forecasted to hit 17,825 cases in 3Q<\/p>\n
Chart 3: Overall home price increased by 4.3% since 2021<\/p>\n
Chart 4: Price at City One Shatin (Phase 4) forecasted to rise by 2.1% q-o-q in 3Q<\/p>\n
Chart 5: Price at Taikoo Shing (Kao Shan Terrace) forecasted to increase by 2.5% y-o-y in 3Q<\/p>\n
Chart 6: Price at Residence Bel-Air (Phase 2) forecasted to rise by 4.9% in 3Q<\/p>\n
Chart 7: About 8,900 new flats potentially available from September to December<\/p>\n<\/h5>\n
Mr Keith Chan, Director, Head of
\nResearch, Hong Kong, Cushman and Wakefield<\/b> comments, “Transaction in the
\nmarket has been active since 2021. The total number of sales and purchase
\nagreements (S&Ps) in the first 9 moths is estimated to be 77,369 cases, ie.
\nan upsurge of 27% y-o-y (Chart 1), while the number of residential S&Ps is
\n57,956 cases, both reaching a histocical high since 2012. However, the number
\nof residential S&Ps in 3Q 21 is forecasted to be 17,825 cases, representing
\na plunge of 19% q-o-q (Chart 2). This is mainly due to the fact that affordable
\nunits have been gradually consumed by the market. With limited availability of
\nresidential units, owners’ bargaining space has narrowed and they even began to
\nraise prices. Buyers took a wait-and-see attitude, waiting for the market to
\ncool down, leading a see-saw situation between the two. Transaction became
\nslow, bringing the property market to consolidation phase.The downward trend is
\nexpected to continue with S&Ps falling to 4,700 cases in September (Chart
\n2).”<\/p>\n
\u00a0<\/p>\n
Mr Edgar Lai, <\/b>Director,
\nValuation and Advisory, Hong Kong, Cushman & Wakefield<\/b> comments,
\n“In terms of property price, overall home price has risen by 4.3% since 2021
\nand is expected to surpass the peak of May 2019 soon. The average price at City
\nOne Shatin has already made its historical high (Chart 4), and that at Taikoo
\nShing has also risen by 2.5% q-o-q (Chart 5). Luxury homes such as Residence
\nBel-Air show similar performance as common residential homes with a 15% rise
\nsince 2021 (Chart 6), only less than 3% from its record high. We forecasted a full year increment of
\n8% to 10% in 1Q 21. We expect property price will rise steadily in 4Q with a
\nfurther increment of maximum 3%.”<\/p>\n
\u00a0<\/p>\n
Commenting on the market outlook, Mr Edgar Lai further commented, “Following a round
\nof active transactions, we expect that the purchasing power previously
\naccumulated in the property market has been released. Buyers also become more
\ncautious after prices have recorded certain increment so far. Moreover, banks
\nare less active in getting business at year end as it is traditional an
\noff-season period for mortgage. In this regard, we expect that both transaction
\nvolume and property price increment will continue to slow down in 4Q. Property
\nprices have reached historical-high and the property market will enter a period
\nof consolidation. We forecast
\nthat about 8,900 new units will be ready for primary sale from September to
\nDecember (Chart 7), of which many come from large-scale developments. 76% of
\nthese are located in the New Territories and the rest across Hong Kong. If primary sales
\nperformance is good, the outcome will be conducive to the stable development of
\nthe market. We have forecasted residential price growth of 8% to 10% throughout
\n2021 by start of the year. With home prices expected to progress
\nsteadily in 4Q, we would estimate a maximum 3% growth by end of the year.”<\/p>\n
\u00a0<\/p>\n<\/p><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Economic recovery in Hong Kong drove
upsurge of residential property transactions by 15% y-o-y in 3Q 21. With
purchasing power gradually unleashed, transaction volume has gone down since
August and is expected to shrink in September. Property market will enter
consolidation phase. Despite a downward trend in transaction
volume, home prices are expected to progress …<\/p>\n","protected":false},"author":1,"featured_media":17519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/17518"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=17518"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/17518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media\/17519"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=17518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=17518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=17518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}