Property prospects stay dull
THE property market will post a dull performance this year, with interest rates dealing a major blow to price movement, Midland Realty said.
A bearish stock market, lack of investor confidence and credit constraints on the mainland will also have an effect, the property agent said in its latest report.
At best, residential prices across the board may gain 10 per cent by the end of the year, the report states.
It forecasts that the small to medium-sized residential sector may fare better than the luxury residential sector because of a decrease in supply.
The supply of small to medium-sized residential units will shrink from 31,920 to 28,730 this year.
In the luxury sector, supply is expected to rise from 1,450 units to 3,090.
In the office sector, the report forecasts prices to fall a further 10 per cent and rents to drop five per cent in the first quarter.
Over the year, it says retail prices may rise five to eight per cent and rents may jump seven to eight per cent.