Domestic property prices and transactions are expected to stabilize, or even turn around and rebound. In fact, property prices have been adjusted by about 15% this year. I believe that many users are waiting for an opportunity to enter the market. Looking forward to next year, normal customs clearance will stimulate the property market to pick up in the first quarter of next year, and the transaction volume is expected to rebound from the bottom, presenting a "little spring", and there will be a greater breakthrough by the middle of the year, and property prices will rebound by at least 5% throughout the year.
Small and medium-sized unit property prices and rents continue to underperform
In the fourth quarter of this year, the interest rate continued to rise sharply, leading to an expansion of the decline in property prices. The property price index for private housing in November announced by the Department of Valuation and Estimation yesterday was 339.4 points, down another 3.33% from 351.1 points in October, falling for six consecutive months and the biggest monthly drop in 14 years. In the first 11 months of this year, property prices have fallen by 13.84%, which is a cumulative drop of 14.75% from the historical high of 398.1 points in September last year. Classified by unit type, the property prices of small and medium-sized units (Types A, B, and C) reported 340.9 points, down 3.4% month-on-month, and 13.9% year-on-year; among them, Type B units (431 to 752 square feet) reported 326.6 points, down 3.4% month-on-month It fell 3.5% and underperformed the market; large units (classes D and E) reported 301.2 points, down 1.5% month-on-month and down 8.9% year-on-year.
In terms of rent, the rent index in November reported 175.2 points, down another 1.35% from 177.6 points in October, and the rent in the first 11 months of this year fell by 4.1%. The rent of small and medium-sized units (Types A, B, and C) reported 178.1 points, down 1.5% month-on-month; the rent of large-scale units (Types D, E) reported 142.9 points, up 0.28% month-on-month.
Zhang Qiaochu, managing director of Hongliang Consulting and Evaluation, pointed out that in November, the property prices and rents of small and medium-sized units underperformed luxury homes at the same time. The supply of new projects focuses on small and medium-sized units belonging to the mass market. However, this year, primary transactions have dropped sharply. Developers have accumulated a large number of small and medium-sized units. In addition, second-hand property owners have relatively weak cargo capacity, so their resilience is relatively weak. He estimated that due to the impact of stockpiling, small and medium-sized units will still face greater challenges next year, while large units will continue to stabilize.
