Hong Kong second hand property transaction gets better since government relaxed DSD term, leading second hand property sq ft price in each district up to latest peak, which made many buyers turn to renting, pointed by Wu Chuangye, the Senior Executive Director of Hong Kong Property Services. According to statistics from major branches of Hong Kong Property, comparing to data in June, property renting source in each district recently sharply decreased, with some projects even lost more than 30%.
Rent rising of small-medium property will be faster than of luxury property.
Until the end of May, the average sq ft rent of small-medium property in Hong Kong was about HKD 23.78, only a little less than about HKD 23.93 which was the historical peak in last March, as recent rent keeps rising, Wu Chuangye predicted, available rental properties will be lack, plus with students from mainland will compete for houses, so the rent in second half year may in rising range of above 5%, being the historical peak. Wu Chuangye pointed, Hong Kong economic fundamentals remain solid, with labor population keeps rising and unemployment rate is low, which will produce housing demand from young people or branch families, and it will drive up the rent of small-medium property in long term, so it is believed rent rising range of small-medium property will be faster than of luxury property.
Available rental houses in indexing projects down by more than 10%.
According to the latest statistics of some large projects from Hong Kong Property Services branches, rental properties source of most indexing projects declined by more than 10% comparing with data in same period of June, Park Central, Yoho Town in Yuen Long, Banyan Garden in Kowloon West, The Pacifica among had the highest down range in about 30%, Wu Chuangye expressed.
Currently, rental property source in Kowloon East is less, take Amoy Gardens which is one of the indexing project in Kowloon Bay as example, it only has about 5 units, while there are only about 8 units from Galaxia in Diamond Hill. Since small cost property in Kowloon East is popular with students from mainland, plus with many users purchasing houses in this district for own occupation recently, so the rental units there are lack, Wu Chuangye explained.
At the same time, projects in Tsueng Kwan do not have many rental properties, like Park Central and Residence Oasis which only have respectively about 17 units and 8 units available for renting currently, and Wu Chuangye believed it caused by the pursuit from mainland students who will study in nearby colleges.
Rent in Tsueng Kwan rises fast because it nearby colleges.
Wu Chuangye expressed, since rental property quantity keeps falling, the rent is in up trend, and Tsueng Kwan district which nearby colleges has faster rising range on rent comparing with data in same period of June, for example, Park Central and Residence Oasis respectively have rising range on rent in about 16% and 10%; As for Festival City in Tai Wai and Galaxia, the rising ranges are up to 15%, reflecting some owners' confidence recently.
Wu Chuangye continued, the rent rising range of Vision City which is one of the indexing projects in Tsuen Wan where there are many transactions at latest peak price recently also is in about 13%; While the rent rising range in down town is comparatively gentle, like Metro Harbour View, Liberté and The Pacifica in Kowloon West, their rents did not in large up or down, as for Aqua Marine and Banyan Garden, the rents even dropped.
In general, second hand property and rental property are both hot recently, and owners are not willing to sell, plus with Hong Kong economic fundamentals remain solid, so it is believed investors' confidence of purchasing and renting will be drove up, thus rent will keep rising, and rent in many projects may appear chasing backward, Wu Chuangye expressed.
