No. of view: 817
Reply: 4
The rebounded market is likely to end before mid-year
2024-3-23
Since the removal of all the cooling measures on February 28, the transactions of first-hand property have been increasing. By the end of March, the total transactions will reach three thousand five hundred. The property outlook is thriving. In mid of March, there were three hundred and thirty-six units of “Uptown East” being put up for sale at low price. It was unexpected that this batch of units could not be sold out completely. It is still uncertain whether the market is fully reviving or not.
In the second-hand property market, the weekly transactions of top ten residential estates were reduced from 110 units to eighty- seven units. The sales price of first-hand property is low, and it will restrain the number of transactions of second-hand property. The first batch of 336 units of Kowloon's new flat of “Uptown East” has been launched for sales under the market price. The developer of Wheelock Properties initiated a price war against Uptown East by opening for sale of its new flat “Seasons Palace” at a lower price of HK$ 14400 per square foot. The sale of "Uptown East” coincided with a strong rivalry, and its remaining six hundred units are difficult to be sold soon.
The share price of listing property agency of Miland property surged one time after the removal of all the cooling measures. However, its share price declined by more than twenty per cent since then. The cancellation of cooling measures had a positive impact on the amount of transactions, but it did not have the same effect on the share price. Besides, the shares prices of most of the listing property firms have been hovering at recent 52-week lows.
The recent shares prices’ rebound of listing property firms lasted less than two weeks. The statistics indicate that the transactions of first-hand property will reach 3,500 units in March. The units in April will be reduced to 2500. Until May, the transactions will fall to 1500 units. In total, the transactions of first half year will reach 8500 units including the 1000 units of the first two months. The property experts expect that the transactions will achieve 6,000 units in the second half of this year, and the total transactions of the entire year will rise to 14500 units.
This rebounded market may end in the mid-year. The unsold units of last year are about 20000 units, and the new supply of this year will add another 20,000 units to the inventory. If the absorption units of this year are only 14,500, the supply and demand is severely unbalanced. The probability that the transaction and the price will fall together is 70% in the second half of this year. Starting from third quarter, the price will decrease further.
|
|
| |
|
|
|
|
|
1. Henderson Land reported its profit at $9.26b 2024-03-23 20:24:30 |
|
Henderson Land Development Company Limited reported its profit at $9.26b for the year 2023, showing an increase of $22m or 0.2% from the previous year. The group’s underlying profit attributable to equity shareholders for the same year amounted to $9.71b, reflecting a 0.8% growth. The profit in 2023 included a net gain of $1.6b from the remeasurement of Sunlight Real Estate Investment Trust’s, a listed associate of the company, net assets to fair value. |
|
2. UK PROPERTY MARKET CONTINUES TO IMPPROVE 2024-03-24 22:21:05 |
|
the atmosphere in the UK property market continues to improve as indicated by the latest data from property website Rightmove. The average asking price for properties during February increased by over 3,000 (HK$29,500) compared to the previous quarter. And the average asking price for properties listed across the UK this month rose by 0.9 percent compared to January, reaching 3,091. That represented a 0.1 percent-increase on a yearly basis, reaching 362,839. These figures align with expectations of seasonal growth for February, and this is the first annual rise in prices since August 2023. |
|
3. Hk retail market face challenges 2024-03-27 13:25:33 |
|
Hong Kong’s retail property market continues to face challenges despite showing recent strength in leasing rates, according to a report by S&P Global Ratings. "We are not hugely confident that this resilience will last." said Wilson Long, S&P Global Ratings credit analyst. "The Hong Kong economy is going through a structural change with low volumes of capital market activity, a shift in the visitors coming to the city to low-spending day-trippers, and a diversion of residents to Shenzhen for spending on essentials." Ling added. Non luxury spending has softened amidst luxury and tourist-focused properties showing vigour. |
|
4. USinvestors shifting to residential properties 2024-03-28 10:05:31 |
|
Amid the downturn in the US office market, investors are shifting preferences towards residential properties and logistics, while some see the opportunity for a rebound. Around 90 percent of institutional investors plan to transform their office space into residential properties within the next five years, as a survey conducted by US-based institution The Association of Foreign Investors in Real Estate showed last October. Speaking at a panel in Cannes earlier on March 13, executives from the real estate industry said some parts of commercial real estate were holding up well, and clients were interested in investing in logistics and data centers rather than offices. |
|
