Political and economic turmoil continues, leading property prices to fall 4.3% by quarter.
Hong Kong Wen Wei Po (By Ngan LunLok)
There have been violent demonstrations in Hong Kong for several consecutive weekends, coupled with the continuous changes in the Sino-US trade war, making the property market to go from bad to worse. The Centa-City Leading Index (CCL) announced yesterday is latest reported at 182.24 points, down 0.23% per week, and it has fallen for 6 weeks. It is worth noting that the CCL four overall indexes have actually fallen for six weeks, the first time to see in nearly 11 years, that is, for the first time to see after the financial tsunami in November 2008. In summary, CCL has fallen 4.33% so far after the constant occurrence of violent demonstrations in the third quarter. The social turmoil has also affected the publicly desire to visit housing units. Appointments to see housing units of 15 housing estates through Midland on weekend are only 384 groups, sharply down about 13.9% by week.
The Senior Co-director of Centaline Research Department, Woo LeungSing points out that, CCL four overall leading indexes falling for 6 weeks is the first time to see in 566 weeks (nearly 11 years), that is, for the first time to see after the financial tsunami in November 2008. Among them, CCL is latest reported at 182.24 points, down 0.23% per week, hitting a 24-week new low and falling for 6 weeks. Before the Mid-Autumn Festival this year, property prices have obviously accelerated downward adjustment, but the property market was not a big decline, and it is estimated property prices will return to the level at the beginning of this year, with the adjustment range in about 10%.
The down range for large units is the most significant in more than 5%.
Summarizing in the third quarter of 2019, all CCL eight leading indexes fell, with CCL among fell by 4.33%. The down range for large units fell significantly more than that for the small and medium-sized units. According to Centaline data, CCL (small and medium-sized units) fell 4.12% in the third quarter, while CCL (large units) fell 5.37%. CCL data announced yesterday base on the transactions with 95% among singing the preliminary sale and purchase agreement between September 9 and September 15, 2019, showing the market conditions for the week of Mid-Autumn Festival on September 13.
New Territories East fell the worst at 1.5% on a weekly basis.
Indexes of four districts this week had two rising and two falling. New Territories East property price index is reported at 191.37 points, a new low in 24 weeks and down 1.53% per week, also it is the biggest decline among all districts. Kowloon property price index is reported at 179.74 points, a new low in 25 weeks and down 0.54% per week, and there is sign of accelerating in decline. As for New Territories West, the property price index is reported at 167.05 points, up 0.47% per week, and it has risen by 0.54% for two weeks. Hong Kong Island property price index is reported at 188.16 points, up 0.25% per week, and it slightly rises after falling for two weeks. Summarizing the property price index for the third quarter, Hong Kong Island fell the most in 5.56%, followed by the New Territories West by 4.32%, then the New Territories fell by 4.01%, and Kowloon fell by 3.22%.
The second-hand property market is in see-saw due to the continued social turmoil.
Midland property price index also fell for 10 weeks, hitting a 23-week low, and the latest report is 168.96 points, down about 0.19% per week. The latest index fell by about 4.48% from the record high, and the cumulative increase in property prices this year has narrowed to 4.94%.
Affected by the social turmoil, the market sentiment continues dull. According to Midland Properties statistics, the visiting appointments for housing units in 15 indexing second-hand housing estates on this weekend are about 384 groups, down about 13.9% from 446 groups on last weekend. The Chief Executive of the Midland Real Estate Residential Department, Po Siu-ming expresses, the continued social turmoil slows down the visiting of housing units and increases the wait-and-see mood. He points out that, the uncertainties were not completely released, so it is expected that the pace of buyers entering the market will be slightly affected by the market sentiment, while there is still no shortage of support for the properties with price reduction, and rigid demand continues to support the leading market. A number of new projects are expected to be launched in October, and first-hand property leading the market is expected to continue.
As for visiting appointments for housing units in ten leading housing estates through Centaline Property on this weekend are 435 groups, down further 3.8% from that of last week. Ricacorp recorded 1,330 groups of visiting appointments for housing units in 50 indexing housing estates in Hong Kong this weekend, down 4.3% on a weekly basis, and rising for 6 consecutive weeks ended. The Research Department Director of Ricacorp Properties, Chen Hoi-chiu expresses, property prices have fallen much from high levels, and it is difficult for owners to further largely cut their prices in a short period of time, while buyers are also concerned about Sino-US trade talks and social turmoils development, so it is believed the second-hand property market will be in see-saw in short-term.