Property report presents performance by sector

Hong Kong Jones Lang LaSalle (JLL) released its November 2019 Property Market Monitor on 26 November 2019. This report covers four main property sectors: office, residential, retail and industrial.

Office sector was the highlight of this report since central office vacancy rose above 3 per cent for the first time since March 2015. On the contrary, subdued demand led to overall market recording a net absorption of 188,500 square feet in October 2019, the third consecutive month of negative absorption recorded. The decline in overall market rents decelerated sharply to 1.6 per cent with an average monthly rent of HKD74.3 per square metre.

The residential sector’s monthly sales rose by 16 per cent m-o-m with 4,001 in total volume, largely attributed to an increase in secondary transactions. The total sales and purchase value are at HKD40.7 billion. Supported by the relaxation in mortgage rules announced in the Policy Address, the decrease in mass capital value growth has dropped to 0.9 per cent month over month.

In the retail sector, the social unrest has affected inbound tourism, bring it down to 34.2 per cent year over year, dropping to 18.3 per cent in retail sales in all major trade categories.

Industrial trade through Hong Kong continues to be affected by the ongoing trade dispute, with imports declining by 10.3 per cent year over year in September 2019, while exports dropped to 7.3 per cent. Leasing activity was muted as some tenants put their expansion plans on hold amidst the uncertain market conditions. — Construction+ Online