Asia property sales are booming in general, but nowhere more
In all, a total of 79,185 deals worth some HK$729.56 billion were completed in Hong Kong in 2018. However, according to local real estate company Midland Realty, the downturn from November brought the lowest figure for December in 28 years. The news is even worse than 2012's instability. Derek Chan, head of research at Ricacrop Properties, was cited by Yahoo News saying:
“Although we saw the market cooling down in the second half, prices are still at a very high level. This has contributed to the record high value."
These December numbers indicate the lowest monthly transaction volume since March last
“Given the macro uncertainties from the US-China trade war, and possibly more US rate hikes during the first half, they won’t move [in the property market] in a hurry.”
Ricacorp says it expects more than 50,000 residential units selling by the end of 2019, a figure which will end up as a decline of about 10
“The primary market’s price correction will be gradual. In 2019, what we see first will be a drop in transaction volumes."
To further exacerbate the already shaky Hong Kong property situation, nose-diving profits are now causing massive tension between sales firms and the developers who vested tens of millions in real estate deals. Sandi Li reporting for the South China Morning Post highlights this aspect. In Li's report, Sino Land dropped its commission rates to just 1.7 percent for the Grand Central project in Kwun Tong. Clearly, a domino effect is taking place in the wake of the disastrous last quarter mess.
Every segment is going to be affected in my view. This can be seen in the plummeting prices for ultra-high-end properties like the Mount Nicholson development 7,978-square-foot “House No. 16” that sold for 7.4% less than its nearest neighbor. The sale price of HK$92