In 2019, fewer than 100 premium residential units will be completed.
In 2019, less than 100 new luxury apartments (1,722 sq. ft. or more) will be completed in Hong Kong's traditional luxury residential neighborhoods, such as The Peak, Southern district, Kowloon Tong, Homantin, and Mid-Levels, according to JLL's latest Residential Sales Market Monitor Report. used car for sale
According to JLL's Residential Price Index, capital values in the mass residential property market have declined by 4.2 percent since peaking at the end of August 2018, marking the end of a 27-month streak of increase. The luxury market, on the other hand, has held up better, with capital values basically unchanged in the fourth quarter of 2018.
Recently, a mansion at Ultima in Homantin was sold for HKD333.8 million, and another at Serenity Point in Sai Kung was sold for HKD188.0 million. In both cases, the deals set new highs in terms of unit price for their respective areas.
"The distinct character of buyers in the two market groups plays a crucial role in the duality in pricing trends," says Henry Mok, Senior Director of Capital Markets at JLL. While cash-rich investors support the luxury residential segment, which is focused on acquiring their dream houses, the mass residential segment is more susceptible to market mood and populated with purchasers who are more pragmatic when making purchasing decisions. Many in the latter will decide to wait and see if the market continues to be dominated by negative sentiment in order to obtain larger price discounts and lower transaction costs."
"Recalling the previous market slump in 2016, when anxiety about a US Fed rate hike at the end of 2015 and Brexit weighed on the Hong Kong property market, capital values in the mass category fell by 10.1 percent." The luxury segment experienced a relatively modest 1.9 percent drop. Given that less than 100 units will be finished in conventional luxury neighborhoods in 2019, the top-end of the market is likely to be more resilient to sagging market sentiment during the present downturn, particularly if it is shorter and milder than projected," he noted.
"Needless to say, uncertainty reigns amid an escalation in trade hostilities between China and the United States, which might impair global economic development and depress investment activity," said Denis Ma, Head of Research at JLL. Hong Kong, as a small and open economy, will be impacted. In this regard, the current market outlook is still strongly reliant on the result of the trade war, which will determine market sentiment.
The main driver of Hong Kong office leasing activity is co-working operators.
Despite persistent global economic concern and a collapsing local stock market, co-working operators remained a prominent source of demand in the office leasing market in December last year, according to JLL's latest Hong Kong Property Market Monitor report.
Eaton House, a coworking space, reportedly leased 14,000 square feet at Three Garden Road in Central, more than doubling their space there. This also shows that, despite the market's high rental rates, enterprises are still ready to expand in Central.
The seasonal slowdown ahead of the customary Christmas season contributed to a negative net take-up of 94,000 square feet in the overall office market last month. With insurers continuing to relocate into non-core office submarkets, decentralisation is a prominent theme in the office leasing industry. CM Hulder Insurance Brokers is apparently relocating from Sheung Wan and leasing 12,000 square feet at South Island Place in Wong Chuk Hang.
"Tight vacancy in traditional core markets helped drive rents in the overall market up by 0.6 percent m-o-m," says Alex Barnes, Head of Markets at JLL. Tsimshatsui, Hong Kong's tightest market, saw the fastest rental gain in December, rising 1.4 percent month on month. The rental disparity between established core-business areas and developing core locations provides significant rental savings, therefore decentralisation will continue. The upcoming Central-Wan Chai Bypass and Island Eastern Corridor Link will encourage more renters to consider relocating outside of Central. Despite the overall trend of decentralization, central demand remains strong, with fierce competition for quality vacancies."
"The downturn in sales volumes has failed to affect pricing in the strata office sales market, with investors continuing to focus on acquiring offices in secondary business locations delivering higher returns," said Denis Ma, Head of Research at JLL. The 22/F at Emperor Group Centre in Wanchai was reportedly sold for HKD 160.8 million or HKD 17,248 per sq ft, while a modest flat at Millennium City 3 in Kwun Tong was reportedly sold for HKD 106.1 million or HKD 13,034 per sq ft in one of the most notable transactions. In terms of unit price, both transactions were among the top three highest ever in their respective buildings."