1.Two indices property prices are low
Hong Kong property market under the influence of the Government 'demand management 'measures ( commonly known as the spicy tax),the overall property prices have almost remained unchanged throughout the year.The latest Centa-City Leading Index (CCL) reported 117.22 points,comparable with 118.38 points in mid-January of last year.Retrieve the information,since last year,CCL has been hovering between 117 points to 123 points,hitting a multi -year lows in the early March, fell to 117.18 points.Although CCL recently picked up,but compared with the highest level of 123.66 points in mid-March of last year, have fell 5.2%.
Another important property prices reference data is RVD 's price index.According to the latest 'Hong Kong Property Review ─ Monthly Supplement',the private residential property prices in Hong Kong in January to 244.6 index points,fell 0.24% on a monthly basis,which have recorded a seven -months low,so it is estimated that the property prices will keep on falling this year.
2.The land supply are available for building 10-years residential units
As to increase the supply of land for housings,the new policy address pointed out that the Government has found approximately 80 lands
in the territory with a total of more than 150 hectares of for afforestation and communities additional lands rezoned residential
development,can supply 89,000 units,together with the original lands,the Government has sufficient lands to meet the future supply of 470,000 units of 10 -year housing supply goals,the proportion of public and private residential properties was sixty-four,60% of the public housing with approximately 282,000 units,as for the private housing of 188,000 units.
To achieve the goal, the Government will continue to increase the supply in the coming year,the Crown lands intends to sell 34 lands which involved in 15,500 units in the new year,which recorded a high of 13% yoy.In addition,the Government plans to except the lands of the northern of Hong Kong Island and the Kowloon Peninsula and other more densely populated regionsas for the other regions,will increase the overall plot ratio of about 20% and the introduction of 'premium arbitration pilot program',arbitration by a third party in order to expedite the premium agreement through arbitration.
3.QE stopped which will cause the interest rate hike
U.S. Fed statement pointed out in the earlier days,a month from April to buy bonds to further reduce the size of HKD $1.0 hundred billion ( HK $7.76 hundred billion).But the most volatility for market is the Chairman of Fed Yel Lun hinted that it might stop buying bonds at the end of six months,that is,it will raise the interest rate as fastest in the spring of next year.However,Yel Lun also showed that even if the U.S. unemployment level fell below 6.5 percent,the Fed won;t be raising the interest rate immediately,also the U.S. labor market has not yet fully recovered,so there is a need to continue to take further affirmative action,so it would keep a low interest rates for a long time.
However,the market must be noted that the delisting by the Fed will cause the funds divestment from the market,Hong Kong does have a chance to raise the interest rates much earlier than the United States.HKMA Chief Executive Chan Dak Lam has earlier warned that the future market reaction of the interest rates which may come more quickly,faster and bigger than the normalization of monetary policy,while the United States to reduce or even stop buying bonds,which may lead the interest rates to changes faster than expected.This wave of rising property prices in Hong Kong ,mainly from the power of QE by United States,so if it have stopped,the property prices will only be slowed down and start falling.
4.New property sales provided with free of taxes,Riva discounted 45% of the prices
First-hand new property market have launched out the property sales with discounted prices and discounts continuosly.Initially last October,SHKP have started to launch out the unsold units of The Cullinan on sale with 'free of taxes'in order to fight for the spicy taxes which launched out by the government,including subsidies double stamp duty,stamp duty and other buyers stamp duty,which have started the war of discounting the prices of new property,which cause all the new property sales almost with the relevant provisions even a variety of tax incentives and other subsidies,as much as 15-20% discounts of the property prices.SHKP have added 'heavy dose' again in thhe earlier of this year,except for the tax subsidies,but also in cut the prices of Riva in Yuen Long,when compared with individual units which put up for sale in March of last year,with a reduction of up to 45%,although the tradings of new properties were driven,but also formally announced the arrival of 'discounted prices age' of the new property sales.
5.Second-Mortgage which cause the distressed properties appeared frequently
Starting from this year the market recorded a number of transactions of distressed properties, many units are 'by the press',the property, and finally become the owners inability to repay causing the distressed properties.AA Property Auctioneers Ltd.director Chun Kit Chun said that although there has yet to see a significant number of the distressed properties increased,but it does have the owners of distressed properties have discounted 5-10% of the property prices,so the prices are much cheaper than the normal units.
HKTDC Joint Surveyors Poon Tsz Ming had pointed out that the recent distressed mansions have a trend of increasing,mainly are the properties with the prices of HKD $1.0 ten million to HKD $2.0 ten million in property and it have recorded about 10 transactions so far in this month Comprehensive market information,the transactions of distressed mansions are belong to the newer age of the property,which have reflected the recent property prices have fell in recent years,most exaggerated is that a distressed mansion which located in Kowloon putting on mortage by ten times madly,and ultimately only HKD $9.28 million and traded,which have recorded 14% lower than the valuation of the bank.
