The flagging property market has prompted Midland Realty to launch a management service tailored for investors who want to diversify into the mass residential market.
Hong Kong's real estate market has entered a consolidation period. According to Ricacorp Properties, the number of property transactions was down 43.6 per cent to 1,645 in the first eight days of this month; the total consideration has gone down 62.9 per cent to $3.69 billion.
Midland Realty's new service, launched yesterday, handles rental transactions for investors who want to diversify into smaller properties.
Ronald Cheung, a director of Midland Realty's surveying department, said the new service was launched in expectation of a change in investor preference.
'During a slow property market, investors want to buy 10 small units in the mass residential market rather than investing all the money in a super luxury apartment. [This is because] small units in large housing estates are much easier to [gain returns from] during poor market conditions,' he said, adding that investors were expected to be more willing to invest in buy-to-let housing since the Landlord and Tenant (Consolidation) (Amendment) Ordinance was enacted.
The new tenancy law, which includes cancellation of the security of tenure, came into practice last week. Landlords who signed tenancy agreements after last Friday can evict tenants as fixed leases end, even if tenants are willing to pay rent in line with the prevailing market level.
