Hong Kong's Wen Wei Po (Reporter Leung Yuk Cum) Although the Government to fine-tune the double stamp duty (DSD) for the flat period,but due to the uncertain factors of China-US economic outlook,continued to increase the supply in the future,the chief executive of residential department of Midland Realty Pu Siu Ming expected that,under the first-hand property market have took away the buyer source of second-hand property market,the annual primary residential sales rose to 13,000 transactions,rose 30 percent over last year as for the second-hand property tradings just recorded over 30,000 transactions,fell from more than 40,000 cases recorded last year.There are a lot of new housing estate have been completed this year,the properties put up for rent have increased which have added the downward pressure on rents,disadvantage for the investment market.
Pu Siu Ming pointed out that against the overheated property market, the Government has launched out the spicy moves repeatedly in order to curb speculation successfully in recent years and gradually increase the supply of the property market on the right track.However,side effects of demand management measures is to enable the Transaction far below normal levels.In fact, the slowdown in economic growth in the Mainland,people's purchasing power have been weakened.Whether the real estate sector in the past,or retail, hospitality,tourism and catering industry are depending on the "Golden Week" opportunity to " do business " .But the past Golden Week,mainland visitors who come to Hong Kong have recorded a decline in the first two months this year,retail sales fell when compared to last year.On the other hand,BSD significantly impede the mainland desire to buy property in Hong Kong,mainland visitors to Hong Kong Building boom in the market no longer exist,recent devaluation of the RMB,with property prices in Hong Kong has seen the top of the cycle,Europe, the United States and Macao but positive recovery in the property market therefore part of the funds were transferred to the mainland overseas.He believes that the property market slump will hurt revenue to the Treasury,together with the financial and economic center of gravity while tourism started to slow down,the government urgently needed to examine the current changes in the market,withdrawing the 3D taxes gradually.
Financial and tourism revenue slowdown,warned the government to withdraw the spicy tricks in order to increase the income
Pu Siu Ming believed that the fine-tuning measures of the DSD will help the flat owners increase the desire of buying property,but there will have a rise on interest rates in the future,under the situation of the supply is keep on increasing,the government housing policy should be forward-looking and flexible digital or lag due to economic factors,when only the real property market crash adjusted,that's a real late.
Midland chief analyst Lau Ka Fai said thay the government predicted this year amounted to 17,610 completed units,hit a new high of nearly 10 years,when the new properties are completed,the owners of the new property units often put the unit up for leasing,the completions of new properties significant increase in mean corresponding increase on rent,demand does not increase significantly,so the rent will therefore be under pressure and added the downward pressure on second-hand properties which put up for rent in the same area.
On the other hand,devaluation would make changes in the property market in Hong Kong.After 2005 the RMB exchange rate reformed,the RMB movements closely with local property prices,the continuous appreciation of the RMB in the past few years,driven by mainland visitors to Hong Kong and drive home prices rise,contrary recent devaluation of the renminbi,the mainland to Hong Kong people to increase home ownership costs,coupled with the BSD factors,the mainland buyers demand on the Hong Kong property have significantly reduced.If the continued depreciation of the RMB will make imported food prices,coupled with lower rents,help relieve the inflationary pressures. If the inflation continues to decline , negative interest rates will narrow , when the future into the rate hike cycle,when the property market stepped into the period of positive interest rates,coupled with the government is keep on increasing the supply,it will likely greatly reduce the investor sentiment.If the spicy strokes unchanged,it will cause great pressure on the property prices .
The interconnection between Mainland and Hong Kong have favor the Grade A offices in the core areas
Midland Executive Director and Chief Executive Officer Wong Hong Shing said that the implementation of the interconnection between Mainland and Hong Kong,Chinese financial institutions are expected to increase in the future business turnover,has now expanded the business through Shanghai and Hong Kong,the increased demand for Grade A offices in Hong Kong,while Hong Kong's first IPO market continued the strong situation from the end of last year, raising about HKD $4.60 hundred billion,with a total of 20 companies listed,the core area of commercial demand is still strong,however,there are zero supply on the core area of the Hong Kong Island next year,the supply is expected to continue in the future tense,Grade A offices in Central and Admiralty can be seen the high line.He said the first five months of this year,the core area of commercial rents have rose 14.7%,it is expected that the core area of commercial prices will rise 8-12%,the rents will rise 10-15% in the second half of this year.
