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KUALA LUMPUR: Sales activity in the Hong Kong residential market was on the upward trend in April and the first half of May. According to the Land Registry of the Hong Kong SAR Government, the number of sales transactions surged to more than 10,000 - a level which was last seen before the global financial crisis. The number of building unit transactions increased 38.3% month-on-month to 11,148 in April.
"However, in such a difficult and uncertain economic climate, many vendors continue to offer discounts in their asking prices in order to entice buyers to enter the property market. The University of Hong Kong All Residential Price Index decreased 1.3% month-on-month to 112.9 as at the end of March 2009, said Colliers International (Hong Kong) in its Hong Kong Office and Residential monthly report.
"On the sub-district level, the Kowloon Residential Price Index witnessed the largest decline of 6.6% month-on-month to 109.8," it added.
In the primary market, a total of 541 residential units were launched between April 16 and May 15, with key launches including The Latitude in San Po Kong, Kowloon and Central Park Tower II in Yuen Long, the New Territories.
Meanwhile, the overall absorption rate edged down from 76% in April 2009 to 59% in May.
Colliers expects the luxury residential market to further correct over the next 12 months following general market perception that the latest recovery is only a short-term rebound, as there are no solid signs pointing to sustainable recovery in the economic environment.
Meanwhile, Hong Kong office rental rates saw a slower downward adjustment in April from the previous month. Colliers' survey showed office rents in Hong Kong declined 4.4% month-on-month to HK$43.03 psf per month, compared with the 5.3% month-on-month decline a month earlier.
Meanwhile, average office capital values in Central and Admiralty posted a mild increase of 0.4% month-on-month to HK$14,271 psf in April 2009.
Colliers said most companies in the private sector are finding ways to reduce costs including office rentals.
"More tenants with their leases due for expiry have strategically leveraged on the plentiful stock available in non-core locations such as Kowloon East with their landlords," it added.
The integrated real estate services provider said Hong Kong office capital values showed signs of stabilising in April due to the continued inflow of capital and the significant improvement in market sentiment.
"Without rental support, the rise in property prices is unlikely to be sustained. The real estate sector will start to expand at a healthy pace once the economic recovery begins. Some analysts predict that healthy growth should resume by the middle of 2010," it added.
"However, in such a difficult and uncertain economic climate, many vendors continue to offer discounts in their asking prices in order to entice buyers to enter the property market. The University of Hong Kong All Residential Price Index decreased 1.3% month-on-month to 112.9 as at the end of March 2009, said Colliers International (Hong Kong) in its Hong Kong Office and Residential monthly report.
"On the sub-district level, the Kowloon Residential Price Index witnessed the largest decline of 6.6% month-on-month to 109.8," it added.
In the primary market, a total of 541 residential units were launched between April 16 and May 15, with key launches including The Latitude in San Po Kong, Kowloon and Central Park Tower II in Yuen Long, the New Territories.
Meanwhile, the overall absorption rate edged down from 76% in April 2009 to 59% in May.
Colliers expects the luxury residential market to further correct over the next 12 months following general market perception that the latest recovery is only a short-term rebound, as there are no solid signs pointing to sustainable recovery in the economic environment.
Meanwhile, Hong Kong office rental rates saw a slower downward adjustment in April from the previous month. Colliers' survey showed office rents in Hong Kong declined 4.4% month-on-month to HK$43.03 psf per month, compared with the 5.3% month-on-month decline a month earlier.
Meanwhile, average office capital values in Central and Admiralty posted a mild increase of 0.4% month-on-month to HK$14,271 psf in April 2009.
Colliers said most companies in the private sector are finding ways to reduce costs including office rentals.
"More tenants with their leases due for expiry have strategically leveraged on the plentiful stock available in non-core locations such as Kowloon East with their landlords," it added.
The integrated real estate services provider said Hong Kong office capital values showed signs of stabilising in April due to the continued inflow of capital and the significant improvement in market sentiment.
"Without rental support, the rise in property prices is unlikely to be sustained. The real estate sector will start to expand at a healthy pace once the economic recovery begins. Some analysts predict that healthy growth should resume by the middle of 2010," it added.
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