(By Huang Jiaming)
Federal Reserve System (Fed) will start to cut the scale of bond purchases in next January and step into the delisting, effect from which to Hong Kong property market is focused by investors. Guo Bingjiang, the Co-Chair and Managing Director of Local leading developer Sun Hung Kai, expressed yesterday that he believed the delisting will be slow under such bond purchases scale cut by Fed, and predicted the interest will keep low for two to three years. While Hong Kong property price affected by many aspects, but the whole price will not largely up and down.
Guo Bingjiang expressed after attending the opening of charity event of Hong Kong Noah's Ark yesterday, although Fed's cutting bond purchases in next January made the interest rise slightly recently, but he found no inflationary pressure and estimated the low interest will maintain for two to three years.
Market worried deflation more than inflation.
He explained, except limit oil supply currently, many aspects are overstock, like shipping business are too many causing the freight down, and market worried deflation more than inflation.
Guo pointed again, since American has good economic performance in the fourth quarter, so it is believed other countries like Japan or European countries will use looser monetary policy to push economic growth, leading interest without largely rise.
As for the effect to Hong Kong property price and the trend of property market, Guo thought, Hong Kong property price affected by many aspects, but he believed the whole real estate price will not largely up and down, while there may be price cut if some developer hurry to sell out the stock.
Besides, MTR relaunched residence project on top of Tin Wing Stop in Tin Shui Wai, and the application will be ended on this Friday. Guo pointed, the group will research again on taking part in the bidding of this project, at the same time he emphasized their land investment policy adjusted according to house selling steps, for example, if the sale amount is about HKD 30 billion in one year, then the expenses on land will be about HKD 15 billion to HKD 20 billion, in order to achieve fast movement of goods.
Price cut pioneer has houses for sale each month.
In fact, Sun Hung Kai as a pioneer to cut price of new project in the end of the year, firstly supplied tax privilege in The Cullinan in Kowloon Station this October to attract customers, raising competition of price cut for new projects. The group although emphasized will put on sale according to market price, but expressed at the same time they have houses for sale each month, including Imperial Kennedy in Sai Wan launched earlier, ready villa project Shouson Peak, and Century Gateway 2 which will be put on sale this month; They planed to launch Riva in Yuen Long and Long Shan Yi Hao in Fanling in next February and March, and also planed to put on sale two office projects in Hoi Bun Rd Kwun Tong and Wong Chuk Hang.
Thereinto, first batch 120 units of Century Gateway 2 which were put on sale at price less about 10% than of Century Gateway 1, received 4,950 applications until closed on this 16th, exceeding 40.25 times than the quota and making new record of the highest application this year. The next day (17th), these 120 units all sold in half day, then the group immediately announced to additional launch 120 units, so there will be 170 units being put on sale on this Thursday including the units additional launched in earlier.
