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Home values to stage recovery in 2011
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Jan 15, 2009 |
Home prices on the mainland will not recover
until 2011 after they have fallen to a
reasonable level, according to DTZ.
DTZ's latest report shows residential prices
in first-tier cities fell 16 per cent in the
last quarter of last year, while prices in
second-tier cities slid 11 per cent.
Alan Chiang Sheung-lai, the head of
residential at DTZ's mainland division,
expects prices in first-tier cities to drop
10 per cent this year and 5 per cent next.
Those in second-tier cities will fall 8 per
cent and 4 per cent, respectively.
"Some developers, particularly in
second-tier cities, are not willing to cut
asking prices. They have the false hope that
the property market can be revitalized
solely by government policies," Mr Chiang
said.
He said the residential market would rebound
2011 at the earliest after the economy
recovered and property prices dropped to a
reasonable level. Home sales fell 20 per
cent to 550 million square meters last year
as many cities grappled with oversupply. DTZ
estimated it would take six months to absorb
the stocks in first-tier cities and 16
months in second-tier cities.
Office rents in Shanghai, the mainland's
financial hub, dropped 12.6 per cent in the
fourth quarter last year, the biggest among
all key cities.
Vacancy rate in Shanghai is expected to rise
sharply next year as the city will see up to
2.28 million sq meters of new supply between
now and then. Office rents to drop 5
to 10 per cent this year, while those in
Beijing will fall 7 to 10 per cent.
Source: South
China Morning Post |
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