2025-02-21 28Hse Editor
The real estate market in Hong Kong continues to experience a downturn, with only seven deals recorded over the weekend at 10 major housing estates, despite hopes that the government will roll back property cooling measures in the upcoming budget.
Centaline Property Agency and Midland Realty both reported these seven transactions, a slight uptick from the previous week's zero, but still the number remains in single digits for the fifth week in a row.
In response to the weak market, both Centaline and Midland, leading property agencies in Hong Kong, have announced plans for significant cutbacks. Centaline is considering closing about 20 percent of its branches, which may lead to a reduction of 400 to 500 staff members, according to Louis Chan Wing-kit, the Asia-Pacific vice-chairman of the residential division. Despite a slight uptick in the rental market, which represents 20 percent of Centaline's business, it isn't enough to offset the fall in residential sales. Chan suggests that a normalizing of transaction levels might only occur when the US begins to lower interest rates.
Hong Kong's private home prices fell by 6.8 percent last year, marking the second consecutive year of decline due to high interest rates and a slowing economy.
Midland Holdings' chairman Freddie Wong Kin-yip disclosed that the group has already reduced its footprint by closing about 140 branches and cutting over 1,700 jobs in 2023. Wong did not rule out further downsizing if economic conditions worsen.
On a brighter note, Sino Land (0083) is preparing to launch four new projects this year with a total of 1,961 flats. One Central Place in Central, which offers 121 flats, is expected to open sales in the first quarter.
In the commercial sector, new shop registrations fell by 15.4 percent month-on-month to 66 last month, as reported by Midland IC&I.
In a high-end property update, a three-story house at 15 Moorsom Road in Jardine's Lookout has seen its indicative price cut by 17 percent to HK$190 million, says Savills, signaling possible price adjustments in response to the current market climate.
Like
