Notwithstanding a 2.5% increase in 2018, the price of apartment units actually underwent negative growth since it was below inflation rate. The pace of absorption has been relatively stagnant throughout 2018, despite the fact that the number of newly launched projects was limited.
We estimate annual apartment price growth to remain flattish at about 3.0%. We do not expect a significant price increase, unless the economy expands at a more rapid rate and overall confidence in the economy scales a new high.
In the currently sluggish market when price growth is stuck, individual investors should consider selective projects that potentially provide better yield.