(by Lai ChiTin)
The wait and see attitude in the property market is strong due to the continued violent demonstrations in Hong Kong and the Sino-US trade war. Centa-City Leading Index (CCL) is latest reported at 180.98 points, down 0.69% per week, and it is a new low in 25 weeks. According to the report, four overall indexes have fallen for 7 weeks, which is the first time since the financial tsunami in 2008, and this company expects the property price adjustment to continue and will return to the level at the beginning of this year, with the adjustment range in about 10% from the high level this year.
CCL is latest reported at 180.98 points, down 0.69% per week, hitting a 25-week new low. The Mass Centa-City Leading Index(CCL Mass) is 182.02 points, down 0.79% per week, and it is a new low in 27 weeks. The CCL (small and medium units) is 180.92 points, down 0.79% per week, and it is a new low in 26 weeks. Three leading indexes also have fallen for 7 weeks, with down ranges in 3.94%, 4.40%, and 4.19% respectively. CCL (large units) is 181.26 points, a new low in 23 weeks and down 0.20% per week, also it has fallen for 8 weeks by a totally of 2.7%.
Property prices are expected to fall by 10% from this year's highs
The Senior Co-director of Centaline Research Department, Woo Leung-sing points out that, CCL four overall leading indexes falling for 7 weeks is the longest all falling period in history, and the previous all falling period happened during the financial tsunami in November 2008. The adjustment range of property prices this time is significantly less. In 7 weeks, CCL Mass has fallen 4.40%, CCL (small and medium-sized units) has fallen 4.19%, CCL has fallen 3.94% and CCL (large units) has fallen 2.61%.
Woo Leung-sing also points out that, during the same period of the financial tsunami in 2008, also in 7 weeks, CCL Mass had fallen 14.83%, CCL (small and medium-sized units) had fallen 15.29%, CCL had fallen 15.48% and CCL (large units) had fallen 16.68%. It is expected the property price adjustment to continue and will return to the level at the beginning of this year, with the adjustment range in about 10% from the high level this year.
Kowloon property price has fallen for four weeks by a total of 2.38%.
According to the report, the indexes for four districts have one down and three ups this week. New Territories East property prices index is reported at 193.18 points, up 0.95% per week, and it ends the falling for two weeks. Hong Kong Island CCL Mass is reported at 186.64 points, down 0.81% per week, hitting a 28-week new low. Kowloon property price index is reported at 178.15 points, a new low in 27 weeks and down 0.88% per week. Kowloon property price has fallen for four weeks by a total of 2.38%, and the decline shows a sign of accelerating. New Territories West property price index is reported at 163.92 points, a new low in 26 weeks and down 1.87% per week, also it is the biggest decline in 45 weeks. The New Territories West Index ended the stable trend at 166 points for six consecutive weeks, and sharply decreases this week after rising for two weeks, also New Territories West property prices have a sign of further decline, so the future trend of it needs to be closely watched.
The report also mentioned that during 7 weeks of accelerated decline in the property market, Hong Kong and Kowloon property prices decline ranges are significantly larger, and Hong Kong property prices index has fallen 5.45%, besides Kowloon property price has fallen 5.26%. While the property prices in two districts of New Territories have less decline, with the New Territories East property price index has fallen by 3.4% and New Territories West property price index has fallen by 2.54%.
