ENG-2019 — Page 85

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The Economy

For 2019 as a whole, the Land Registry received 59,800 sale and purchase agreements for residential property, up 4 per cent, mainly reflecting the buoyant trading situation in the first five months. Even so, this was still far below the long-term average of 81,200 from 1999 to 2018 (chart 10). Total consideration declined 2 per cent to $548.8 billion.

Chart 10

Number ('000)

30

20

10

0

Sale and Purchase Agreements by

Broad Type of Property

Non-residential property

Residential property

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015

2019

2016

2017

2018

Trading activities were buoyant in the first five months of 2019 before becoming quieter in the rest of the year.

Flat prices in December 2019 on average retreated 4 per cent from the recent peak in May. Nonetheless, given the hefty gains in the first few months of 2019, there was still an increase of 6 per cent over December 2018. Analysed by size, prices of small and medium-sized flats and large flats went up 6 per cent and 1 per cent respectively during the year. The leasing market also cooled off, with flat rentals shifting to a decline in the latter part of the third quarter. As a result, flat rentals in December 2019 on average retreated 5 per cent from the recent peak in August and were 2 per cent lower than in December 2018. Analysed by size, rentals of small and medium-sized flats and large flats declined 2 per cent and 4 per cent respectively during the year (chart 11).

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