Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Sat
Aug 02nd
Lost Password? Register
Home arrow News arrow Asia arrow Beijing and Hong Kong residential property markets remain robust

Beijing and Hong Kong residential property markets remain robust

Monday, 26 November 2012
Image
Residential property markets in Beijing and Hong Kong are continuing to see robust demand, according to the latest Jones Lang LaSalle Asia Pacific Property Digest.

In Beijing serviced apartment rents increased by 2.8% quarter on quarter in the third quarter of the year and high end apartment sales price rebounded, rising 7.4%.

The report says that in the luxury market the main demand drivers were cash rich buyers who purchased high end apartments to upgrade living conditions or for the purposes of their children’s education.

Inspired by the rebound in the number of units sold in the second quarter of 2012 as well as the good performance in the third quarter, developers of some projects stopped cutting prices and raised asking prices or reduced incentives offered to potential buyers.

Looking ahead to the final quarter, The Imperial Mansion, Beijing Marriott Executive Apartments and Global Trade Centre Serviced Apartment are expected to be completed, offering a combined total of 430 units. It says that robust demand should be beneficial to the new projects, and the average rent should experience an increase similar to that of 2011.

‘It is likely that the number of High end apartments sold in 2012 as a whole will outperform that of 2011. In terms of transaction price, it is expected that the average transaction price will hit end of 2011
levels by the end of this year,’ it adds.

In Hong Kong the new round of cooling measures has failed to dampen market sentiment and capital values have continued to edge higher despite a drop in sales volume.

In an attempt to stabilise home price movements, the government introduced 10 measures aimed at providing adequate housing supply in the market over the short and medium term. ‘However, as the short term measures only consist of about 1,830 subsidised units spread over the next two years and the longer term land supply will take time to complete, the announcement of these measures had little impact on sentiment in the luxury segment of the market,’ says the report.

In addition to the government’s new housing supply measures, the government also further lowered loan to value ratios on new loans for applicants with one or more properties under mortgage for investment purposes, net worth based applicants and those whose principal income is derived from outside Hong Kong.

‘In the current end user driven market, however, the impact on purchasing demand was limited. Market sentiment was largely positive in the third quarter of 2012 despite the number of residential sale and purchase agreements declining by 6% quarter on quarter,’ the report explains.

Demand for luxury properties remained soft with preliminary data showing just 75 properties priced over HK$50 million being transacted, down by 50.7% quarter on quarter but still up 25% year on year.

‘Under the current restrictive measures, transaction volumes are expected to stay at low levels since owners will be less likely to sell because of the potential inability to re-enter the market due to the higher entry costs. Low interest rates coupled with a healthy labour market and a tight supply pipeline, however, should continue to lend support to prices over the near term,’ the report points out.

‘We project luxury residential capital values to grow by 5% to 10% in 2012 and within a single digit range in 2013. Weak demand is expected to continue to drag luxury residential rents lower through the remainder of 2012 though an improved economy from 2013 onwards will help bolster leasing demand and support rental growth,’ it adds.

However, in Shanghai despite demand from first time buyers holding up, due to government support, high end sales momentum has slowed as developers stop offering new discounts.

The sales volume of commodity housing in the primary market rose slightly by 1% quarter on quarter. However, September, a traditional strong season for home sales concluded with only 811,492 square meters sold, significantly lower than in June when sales volume peaked at 1,033,846 square meters.

The high end segment saw sales momentum fade in several projects in emerging areas such as the Xuhui Riverfront. After offering significant discounts in the first and second quarters these projects held prices stable in the third quarter, leading to slower sales.

The report predicts that there could be further efforts by the government to help improve the affordability for first time buyers.

 


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here






West Tower

West Tower

Car park

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

West Tower

Asia: Top Headline

Office leasing volumes in Asia Pacific showing signs of growthOffice leasing volumes in Asia Pacific showing signs of growthDemand for Grade A office space in Asia Pacific is beginning to revive and some markets are experiencing small increased in rents, according to the latest commercial market report for the region from JLL.

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

First women president for RICS

Louise Brooke-Smith has become the first female president of the Royal Institution of Chartered Surveyors (RICS) in its 146 year history.

Finance Update

Lloyds announces it is ahead of schedule for first time buyer lending

Lloyds Banking Group has announced that it is ahead of schedule in meeting its first time buyer commitments for 2014.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Asian property and real estate news feed (RSS)