Hong Kong property prices, rents seen to fall further next year

But there's one segment that'll register growth.

According to Colliers International, following the downward adjustment of prices and rents in all sectors of the Hong Kong property market (residential, office, retail and industrial property) in 4Q 2013, the downtrend is likely to continue in 2014.

Speaking at a press briefing, Richard Kirke, Managing Director of Colliers International Hong Kong, pointed out that sales prices in every property sector were considerably lower in the fourth quarter of 2013 than the preceding months, meaning there will be a net decline over the year.

He added that the strong double-digit increases in retail and industrial property prices seen in the past couple years have invariably been followed by corrections.

Simon Lo, Executive Director of Research & Advisory, Asia at Colliers International concurred, adding, “The downside will vary in intensity, with residential and retail property prices tumbling by double digits, while the others are likely to see smaller single-digit corrections. Only industrial property rents are expected to grow, by a modest average of 2%. Falling sales prices are set to increase average yields by 15-40 basis points (bps).”