Residential sales in Hong Kong dropped practically 30 % in one month as weak demand struck the apartment market yet prices are still rising, the most recent information shows. Numbers from the Land Pc registry reveals a 27.8 % drop in purchases in August from the previous month as well as baseding on international property firm Knight Frank this was due to damaged demand dued to the slump in both the Mainland and neighborhood stock markets. However, residence costs still recorded small development, as a result of solid end user need and Knight Frank expects prices to remain firm for the remainder of the year. Without a doubt the company is predicting that at the top end high-end home prices are likely to increase between 2 % and 5 % this year while the remainder of the market might see price growth of 5 % to 8 %. Residential land costs also remained solid, with the asking land costs for Lohas Park phase eight in Tseung Kwan O attacking a record high for a residential project in the area at HK$ 2.955 billion, or an accommodation value of HK$ 2,830 per square foot. The most recent evaluation report from Knight Frank suggest that the primary sector remained the marketplace emphasis, with developers active in launching brand-new flats and offering useful bundles, liking price cuts as well as 2nd home loans. As an example, price cuts of 10 % to 20 % were offered for the most up to date set of devices at High Park Grand in Mong Kok. In Aspen Crest in Diamond Hill, meanwhile, second home loans worth 30 % of the total purchase price were supplied, indicating homebuyers just should pay a 10 % deposit. A breakdown of the figures in the Knight Frank report reveal that in the prime property market costs have actually held up however leas have fallen in some places. In The Peak area costs were standard month on month but are 5.2 % more than August 2014. Rates were also level in Island South month on month however up 2.6 % year on year. Mid-Levels saw month on month price growth of 0.3 % as well as year on year of 8.1 %, Jardine’s Lookout/Happy Valley likewise saw month on month development of 0.3 % and also annual development of 9.8 % while Pokfulam tape-recorded month-to-month cost growth of 0.1 % and year on year development of 9.5 %. In the prime rental market there has been little growth. In The Peak rents dropped 0.2 % compared with July as well as are flat compared with August 2014, while in Island South rental fees are also flat compared with a year earlier as well as down 0.3 % month on month. Mid-Levels has seen development of 0.5 % year on year yet rental rates were level month on month, Jardine’s Lookout/Happy Valley has actually seen rents drop 0.2 % month on month but up 0.2 % year on year and also in Pokfulam rents are standard month on month and also up 0.5 % year on year. Continue reading
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