Residential transaction shows downward trend: Cushman & Wakefield
Home prices are expected to rise by a maximum of 3% in Q4.
Residential property transaction volume has displayed a downward trend, according to Cushman & Wakefield.
This is because of the market purchasing power unleashed at a certain level and consumed in the first half of 2021, reduced available affordable units, and diminished bargaining space for owners.
Head of Research Keith Chan said, "Buyers took a wait-and-see attitude, waiting for the market to cool down, leading a see-saw situation between the two. Transactions became slow, bringing the property market to the consolidation phase. The downward trend is expected to continue with sales and purchase agreements falling to 4,700 cases in September."
Furthermore, valuation and advisory director Edgar Lai stated, "In terms of the property price, the overall home price has risen by 4.3% since 2021 and is expected to surpass the peak of May 2019 soon." He also mentioned they expect the purchasing power previously accumulated in the property market has been released following a round of active transactions.
Buyers also become more cautious after prices have recorded certain increments so far. Moreover, banks are less active in getting business at year-end as it is a traditional and off-season period for mortgages. In this regard, they expect that both transaction volume and property price increment will continue to slow down in the fourth quarter.