ENG-2020 — Page 81

3

The Economy

the market was supported by the low local interest rate environment resulting from massive monetary stimulus around the world and firm end-user demand. Trading activities remained generally active from the second quarter, while flat prices did not show much change for the year as a whole.

After staying subdued in the first quarter, trading activities showed a sharp rebound in the second quarter and remained generally active thereafter. For 2020 as a whole, the Land Registry received 59,900 sale and purchase agreements for residential property, little changed from 2019. This was higher than the five year average of 57,900 from 2015 to 2019, though still much below the long-term average of 80,300 from 2000 to 2019 (chart 10). Total consideration likewise was little changed at $548.2 billion.

Chart 10

Sale and Purchase Agreements by Broad Type of Property

Number ('000)

30

20

20

10

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

2016

2017

2018

2019

2020

Trading activities remained generally active from the second quarter of

2020.

Flat prices in December 2020 were on average broadly the same as in December 2019. After staying steady during the first quarter, flat prices increased 2 per cent during the second quarter, but retreated by a similar extent during the second half of the year. Analysed by size, comparing December 2020 with December 2019, prices of small and medium-sized flats were little changed, while those of large flats rose 2 per cent. Flat prices in December 2020 were 4 per cent lower than the recent peak in May 2019. The leasing market consolidated further in 2020. Following the noticeable decline in the latter part of 2019, flat rentals on average continued to fall visibly during the first quarter of 2020 before stabilising in the ensuing three quarters. Flat rentals in December 2020 were 7 per cent lower than in December 2019, and 12 per cent below the recent peak in August 2019. Analysed by size, rentals of small and medium-sized flats and large flats declined 7 per cent and 4 per cent respectively during the year (chart 11).

45