Property

An early spike in the second-hand market

second hand market early spike

There are many factors that help boost the property market as we head into the new year. Many units were sold at a historical high, transaction volume is huge and the spike in the property market that usually hits after the Lunar New Year has come early. The demand in the secondary market is strong, and buyers are still willing to pay more than imaginable for a flat. The property market is forecasted to be very active before and after the Lunar New Year holiday period with many transactions expected in the first quarter. 

Recently, the stock market in Hong Kong has been making new records and it is good for the hot money to flow into the property market, signifying an early spike. According to the data from the Land Registry and property agencies, the number of second-hand registrations in October and November of 2017 were over 4,000, reflecting that the second-hand market will be kept in high demand. 

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The period from Christmas to the Lunar New Year holiday period is usually considered as a low season, and the spike in the property market should come after the Lunar New Year, however, this year is different. Going into the new year, the Legislative Council approved the bill of extending the period of disposing a homeowner’s first flat from six months to one year, which gives faith to those buyers. Paul Chan, the Financial Secretary, said he will consider loosening the ratio of mortgage insurance. This boosts the buying power and lead buyers to make a quick decision to buy property. Moreover, the Heng Seng Index breaking a historical high could also make the property market extremely sought-after and increase the transaction volume in 2018.

>> Last issue: Hitting an all-time high