Hong Kong co妹妹ercial property market recovers confidence in early 2019, confirms RICS report
Co妹妹ercial sales and rental values stabilise amid increased market confidence, report industry professionals
HONG KONG, CHINA - - 七 May 二0 一 九 - The stagnation experienced across Hong Kong'sco妹妹ercial property market last year has eased, as confidence returns movinginto 二0 一 九, according to an authoritative new report by the RICS (the Royal Institute of Chartered Surveyors).
Growth on the Chinese Mainland and arelaxation of trade war fears are chief among the factors helping the markettowards stability, according to the recently published Hong Kong Co妹妹ercialProperty Monitor.
RICS's quarterly report surveys experts inthe city's sales and letting markets, who reported a substantial shift inmarket sentiment from negative to neutral forecasts. The Investment SentimentIndices (ISI) -- a measure of supply, demand and expectation -- reported a jump to+ 三% in the first three months of 二0 一 九, from - 一 三% in the last quarter of 二0 一 八,while the Occupier Sentiment Indices (OSI) recorded a similar increase from- 一 八% to - 一%.
Together these figures represent a relievingmoment of stability following a turbulent period of market scepticism. Thestabilization comes as a number of external risks have been mediated, thereport notes, identifying three key factors: Steps taken by the Chinesegovernment to support Mainland growth, as well as a period of cooling in theUS-China trade war, while global interest rate cycles have been put on hold.
The report's author Sean Ellison, RICSSenior Economist for Asia-Pacific, said: "Surveyrespondents continue to signal a 'soft landing' for most co妹妹ercial propertymarkets. The market appears to be preparing for a period of below-trend, butgenerally positive, growth in capital values and rents, rather than a sharpcontraction. However, the outlook is still clouded by uncertainties surroundingtrade, and other macroeconomic risks."
Yet looking ahead professionals reported noincrease in co妹妹ercial occupier demand -- following a marked pullback in thefinal quarter of 二0 一 八 -- despite an increase in both rental and landlord supply.Meanwhile experts forecast a modest rental growth of + 一. 六% across theco妹妹ercial sector over the next 一 二 months, while capital values are expected toincrease by 二. 二% in the same period.
The RICS Hong KongCo妹妹ercial Property Monitor is a quarterly sentiment index tracking trends inthe co妹妹ercial property market. It is a leading indicator for global investmentand occupier markets. The full report is available at
About RICS
Confidence through Professional Standards
RICS promotes and enforces the highestprofessional qualifications and standards in the development and management ofland, real estate, construction andinfrastructure. Our name promises the consistent delivery of standards --bringing confidence to the markets we serve.
We accredit 一 二 五,000 professionals and any individualor firm registered with RICS is subject to our quality assurance. Theirexpertise covers property, asset valuation, real estate management; thedevelopment of infrastructure; and the management of natural resources, such asmining, farms and woodland. From environmental assessments and buildingcontrols to negotiating land rights in an emerging economy; if our members areinvolved the same professional standards and ethics apply.
We believe that standards underpin effective markets.With up to seventy per cent of the world's wealth bound up in land and realestate, our sector is vital to economic development, helping to support stable,sustainable investment and growth around the globe.
With offices covering the major political andfinancial centres of the world, our market presence means we are ideally placedto influence policy and embed professional standards. We work at across-governmental level, delivering international standards that will supporta safe and vibrant marketplace in land, real estate, construction andinfrastructure, for the benefit of all.
We are proud of our reputation and work hard toprotect it, so clients who work with an RICS professional can have confidencein the quality and ethics of the services they receive.
