According to the latest report released by Knight Frank, Grade-A office sales had been sluggish due to the continual implementation of cooling measures, while the residential sales were also slow. The retail property sector remained the most resilient among the three markets.
Prime Office
Grade-A office sales had been sluggish due to the continual implementation of cooling measures, dragging down prices by 3.3% in six months, while Grade-A office leasing and rents remained stable overall. Limited supply and continuing demand are expected to keep Grade-A office rents stable in most districts, while some buildings are actually seeing modest rental.
Thomas Lam, Director and Head of Research & Consultancy, Greater China at Knight Frank expects, Grade-A office sales will remain low as long as the government continues to implement cooling measures.
Residential
In September, residential sales were slow. Though developers offered more discount to lure buyers, the sales of two large projects in Tsuen Wan and Yuen Long reflected signs of slowdown. The secondary market was also sluggish. Whilst, the leasing sector, having entered the slow season, became quietened, resulting in a slight dip in rents.
Retail
The retail property sector remained the most resilient among the three main markets, witnessing the expansions of both local and international retailers on the back of increasing visitor-arrival numbers. The local retail business is expected to remain supported by inbound tourism in the foreseeable future. Further growth in the arrival number is expected to offset the negative influence of change in the consumption pattern of Mainlanders.