Hong Kong's Wen Wei Po (Reporter Leung Yuk Cum)The Chairman of Fed Yei Lun indicating that they will stop buying bonds till the end of this fall autumn, so it cause the U.S. interest rates schedule will launch out ahead as fastest in the first half of next year,the global stock exchange crashed,Hong Kong stocks plunge of nearly 400 points yesterday,the real estate shares bear the brunt also.The softened prices of the property market suffered from another significant interest rate attack recently,the new property Trinity Towers which located in Cheung Sha Wan yesterday launched out the sale with the price lower than the asking price of second-hand property market,also the second-hand property sales keep on increasing the transaction cases with a discounted price.Analysis pointed out that a clear signal of interest rate hike,in the midst of decline or decline in the property prices in Hong Kong are expanding,so it is expected that as to april and May,the property prices will fall 10-15 percent over the same period of the first half of last year.
U.S. Federal Reserve indicated that renounce the use of the unemployment rate of 6.5% for forward-looking guidance and will stop
buying bongs till this fall autumn,the market is expected that it will start rising the interest rate as the fastest in the first half of next year.Centaline Asia Pacific president,Mr Chan Wing Kit said that the Fed have further clarify the statement the Fed 's decision to raise interest rates,which will make the decline of property prices accelerated,the former the property prices is expected to fall about 10-15% in the first half of this year compared to last year,but it is believed that it will advance in April,May of this year.
The adjustment of the property prices will be accelerated
In addition,due tot the fact that the existing property market was supported by the home-buyers alone,the market is weak successor,under the haze of rising interest rate,Mr Chan Wing Kit believed that buyers will hold the mentality of 'buying the property later with a cheaper prices', so the transaction volume was hard to rise significantly and the second-hand property transactions in March is expected to rise to 3,000 to 3,500 cases,but in April and May,it may pullback to 3,000 cases or below the level.
As the shock of rising interest rate have affected the new properties immediately,Trinity Towers which located in Cheung Sha Wan is a project of Cheung Kong in Cooperation and Development Authority,they have launched out the 108 units on of it yesterday,provides up to 11.75% discounts,which have recorded the most cheapest property prices since the implementation of the first-hand new property legislation in the end of April last year.Mr Chan Wing Kit said that under the current external economic environment and there are many new property sales with a low prices in order to attract the buyers.In addition,as affected spicy tricks and launching out a number of lands by the government,some of the second-hand residential property prices have already fell by about 10 percent over the same period of last year,subject to increase in the future supply of hand,spicy tricks and the interest rate rise,it is believed that the government needs to make a preparation of reducing spicy tricks or even need to be ended the spicy trick legislation.
First-hand and second-hand properties keep on discounting the prices
Vice-Chairman of the Midland Group Angela Wong pointed out that the local property market has been reversed,according to Midland " Price Chart " show that the property prices in February have fell about 4.3% when compared to last year's high prices.Meanwhile,the bid on land prices have signs of fall,coupled with a new real housing estate pricing with the prices of units which in the same area have further narrowed,it is believed it will add pressure on the second-hand property prices.
In fact,the overall decline in property prices has begun to expand in February.Centaline Chen Huilin said,a unit which located in Flat B,Middle Floor,Tower 12,Tierra Verde,Tsing Yi,with an utility area of 512 feet,the owners have put the unit on sale a year ago,with a asking price of HKD $6.3 million,as follow the market conditions,the owners have discounted HKD $1.1 million (a decrease of 17.4%) of the prices and sold with the tenancy contract in HKD $5.2 million(other discounts cases can refer to the table ).Ricacorp Properties head of research Chou Moon Kit also indicated that estimate this month resale of secon-hand residential units as well as the success rate of selling properties to make a profit will fall to about 98 % and 55% respectively,which have recorded a new low record in nearly three years and two years single-month low respectively.
The datas show that the average profit per transactions of private residential properties changed hands in February have only recorded
59.1%,rose 0.9% when compared with the record of January.It is worth noting that,the proportion of the owners who sold their properties with profit of one times,since the fall of 30 percent rate which recorded in last October,has been keep on falling,as of February in this year,the figure fell to 24.6%.
It will rise the interest rate as soon as next year
Associate Professor of Finance and Decision Sciences of Poly University Mr.Mak Chun Choi said that the rate hike schedule depends on the environment of the U.S. economy,such as unemployment, GDP growth, etc.,now that saying the interest rate hikes seem premature,but can be expected in the foreseeable future,ie the next 12 to 18 months may begin the rate hike cycle.
BOC Hong Kong Economic Research Department of Economic Research Chuk Leung believes that the market have necessary to adjust interest rates on the judgment,according to the current progress,QE will be completely stopped in October or November this year,in other words,for the first time or ahead of time to raise the interest rate will be advanced in the first half of next year.
