In a report released last week, Citi said that if the weekly secondary transactions remain low, it reflects that the overall demand for properties is worse than the original pessimistic expectations, which implies that the downward cycle of property prices has begun. It is expected that the current round of property price adjustments will last at least until the end of the year, and property prices may fall by 6% in the second half of the year; and next year there will not be a scenario in which interest rates in the U.S. peak and then accelerate to cut interest rates.
This week, a number of central banks around the world to discuss interest rates, the market is almost certain that in addition to Japan, the United States and Europe will continue to raise interest rates, it is expected that Europe and the United States central banks will raise interest rates by 0.25%.
Hong Kong interest rates have upward pressure, the market maintains a wait-and-see atmosphere, but in some of the new properties to the corner of the customer back to the second-hand market to find bargains, the main agent in the weekend recorded blue-chip housing transaction rebound, the most recorded 7 transactions. However, Centaline and Midland have recorded single-digit transactions for the 12th consecutive week. Second-hand transactions lack of momentum, some anxious owners have to reduce prices or erosion of letting go, which in the last five years, the high price of property owners to enter the market more deeper and deeper erosion.
Kwai Chung Ka Tsui Yuen Block 1 a 456 square feet of high-rise two-bedroom households, looking out over the mountains. The original owner in March this year, to 5.48 million yuan to release. 5 at the end of May when the initiative to reduce the price to 5.3 million yuan, and then there are looking for property prices to 5.15 million yuan, but the owner of the enterprise hard 5.25 million yuan, and missed the opportunity to sell. In recent months, the property market has been deteriorating and owners have to accept the reality.
This month, a prospective bridegroom boldly counter-offer to $4.95 million, and the owner eventually sold the property for $5.05 million, which is about $11,000 per square foot. The original owner purchased the unit for $5.45 million in January 2018 and held it for five years, losing $400,000 on the books and 7% in value over the period. if the owner had been willing to sell for $5.15 million, he could have lost more than $100,000 in the process.
Second-hand transactions are quiet, the first-hand market is no exception. Although the beginning of July, Henderson Kai Tak HENLEY PARK price reduction sales, once activated the property market, the first round of sales in a single day sold nearly 80%. However, after the sale of the two new developments after the strength is not continued, Pan Ocean's Hung Shui Kiu Hui Du, and Kerry-led development of the Wong Chuk Hang station sea Ying Shan, the first round of sales ratio of less than half.
As for other new developments, even with discounts or price reductions, or even free parking spaces with purchase, there were few takers. The past weekend, in the absence of brand-new disk on sale, first-hand transactions only recorded about 15 cases, mainly from the Hengdi Quarry Bay now building project THE HOLBORN.
