Hong Kong Property Research and Forecast Report Q3 2016
Hong Kong’s economy is showing more signs of recovery. Based on the latest GDP figures, the import/export trade, accommodation and food services, and construction sector have all recorded positive growth. However, the decline of wholesale and retail sector continues with lower tourist arrival numbers and retail sales for January – August 2016. As the economic outlook has become more positive, so overall sentiment for Hong Kong’s property market has improved. The latest Colliers International Hong Kong Property Research and Forecast Reports highlight the findings and projections for different property sectors in Hong Kong
- Office: Demand remains firm on Hong Kong Island and rents are stable. Over the next couple of years tenants will be looking for incentives from landlords and should consider upcoming office space in Kowloon East, Island East and Wong Chuk Hang due to their attractive rents.
- Residential: Colliers expects home prices may now not fall this year, but rather remain more or less flat for luxury properties and rise in the mid-single digit range for mass market housing.
- Retail: The warehouse and logistics industry ought to be encouraged by an increase in total exports (+0.8% YOY) in August; however, retail sales slid at a double-digit rate in the same month. Landlords of industrial buildings have been offering more properties for sale with flexible price terms.
- Industrial: A further slowdown in visitor arrivals and structural changes in mainland consumer behaviour continued to squeeze retail sales across the board. Rent of prime street shops has dropped by 9% so far in 2016 which is in line with Colliers’ projection of a decline of 10% for the year as a whole.