Hong Kong’s ‘God of Property’ predicted that prices could slump by up to 30 per cent next year in the face of a deteriorating economy, as the one-month HIBOR soared to above 2 percent.
Justin Chiu Kwok-hung, the executive director of CK Asset (1113), said property prices in general are likely to fall between 10 and 20 per cent while prices of nano flats in far-flung districts could plunge by as much as 30 per cent.
He said around 4,000 to 5,000 nano flats are expected to go on the market over the next few years, and this would lead to a fall in their prices.
Chiu was elaborating on an earlier comment he made at a dinner event on Tuesday, when he said that property prices could fall by 25 to 30 percent.
He said property prices are high at present and while the ongoing Sino-US trade war is affecting Hong Kong’s economy, the burden on mortgage holders will become heavier with the US Federal Reserve poised to increase interest rates further.
Chiu also believed that China emerged victorious from the meeting between US President Donald Trump and President Xi Jinping, as Beijing had already decided to boost agricultural imports a few months before the talks, and it also won a 90-day reprieve, while America did not win anything of significance.
Chiu revealed that CK Asset’s property sales reached a hefty HK$50 billion in 2017, while the company will this year enjoy a HK$40.2 billion windfall from last November’s sale of The Center, a 73-story tower, to a consortium of the city’s investors and buyers from the mainland.
CK Asset sold nearly 500 homes worth a total of HK$13.5 billion this year. Both numbers were less than those of competitors Sun Hung Kai Property, Henderson Land, New World Development and Wheelock Property.
Meanwhile, Ricacorp Property forecast that property prices will fall at the beginning of next year but rise later with 5 percent rise for the whole year while Standard and Poor predicted that prices will drop 5 to 10 percent as the economy is slowing down.
In the secondary market, a 772-sq-ft three bedroom unit in Twin Peaks changed hands at HK$17 million or HK$19,430 per sq ft, HK$2 million lower than the asking price, while a 363-sq-ft unit in Metro City changed hands at HK$6 million or HK$16,529 per sq ft, HK$3.8 million lower than the asking price.
In other news, Chan Yan-tak, chief executive of R ONE Space as well as Shunten International (Holdings) Limited (0932) announced the opening of its second co-working space office space in Kwun Tong, the first one located in Causeway Bay. Its co-working space monthly rental is HK$3,000.
Chan foresees that the market for co-working space in 2019 will shrink due to stiff competition.