Expect the property market to maintain healthy development in the next two years

Hong Kong banks are planning to raise interest rates in the short term, adding to the uncertainties in the property market in Hong Kong. SHKP (00016) believes that Hong Kong Bank has sufficient funds to facilitate a low interest rate environment. It is expected that the property market will maintain healthy development in the next two years.

Xinyi, the deputy managing director of the company, said at the performance meeting yesterday that the interest rate hike by Hong Kong and the United States is within the market expectation. However, the US Federal Reserve’s rate hike is not clear. I believe that the pace and extent of interest rate hikes will not be too aggressive. On the other hand, the funds of the banking system in Hong Kong are still abundant. Major banks are actively developing mortgage business. In terms of current environmental conditions, they are still in a good position to purchase property.

One hand just needs to be strong, but the turnover is expected last year.

The Central Plains City Leading Index, which reflects the trend of second-hand property prices in Hong Kong, is currently at a historically high level, but the increase has slowed significantly since the end of June. Lei Wei believes that the government’s property market regulation measures have reduced the turnover of the second-hand market, but the “rigid demand” of the primary market has not diminished. In addition, Hong Kong’s economic growth has remained stable, and the mortgage interest rate is low, which is favorable for the demand for mortgage and home purchase. The overall market conditions are expected to be in the next two. The year will still develop healthily. However, based on the historical record of the number and amount of residential transactions last year, I believe that this year will be less than last year.

The Sino-US trade war may have changed the economic development of Hong Kong. The Chairman and Managing Director of the New Territories, Mr Kwok Ping-lian, believes that the Mainland’s positive policies can alleviate the economic downside risks brought about by trade problems and that new cross-border transport facilities in Hong Kong and China will be put into service. With the support of the Dawan District Development Plan, the Hong Kong economy is expected to grow sustainably.