The property index hit a longest jump in 18 months

The index of private property prices continued to rise 0.27% in September, rising for an 18-month cumulative gain of 25%. It recorded the longest upward move ever since its record. However, the upward momentum has weakened and the monthly increase has narrowed to the smallest of this year.

Analysis shows that the government has no solution to the land supply, property prices continued to rise.

The Rating and Valuation Department announced that the index of private home prices for September was the latest at 340 points, its highest level for 11 consecutive months, 11% above the previous upward trend of 306.1 in October 2015.

September rose 0.27% but the upward momentum weakened

The rebound from the bottom of property prices in March last year has accumulated 18 months so far. This is the longest rising wave since records began in 1993, an increase of 25%. In the first nine months of this year, property prices soared 10.6%.

However, the index movements reflect weaker impetus for the rise in private property prices. The one-month rise in September was only 0.27%, further narrowing from 0.53% in August and the smallest increase since the beginning of this year, up by 14.8% on an annual basis. Among them, Class B small and medium-sized flats with a salable area of ​​431 to 752 square feet have stagnated in the latest September. They are the smallest in nearly 18 months and their large-sized units of Type D, ranging from 1,076 to 1,721 square feet, also showed a month-on-month increase of less than 0.1 %.

Fine units rose 0.4% or the largest increase

As for the Group A thin units, which saw the largest increase during the period, they were smaller than 430 square feet of usable area, up 0.4% in September, narrowed from 0.8% in August and up 15.3% on an annual basis, a rise of Among the largest units. In the meantime, the more popular housing index, mainly large-scale housing estates, recorded a 0.6% increase in September, a cumulative gain of 10% this year.

In fact, before the release of the policy address by the Government, there is a strong sentiment in the secondary market. Coupled with the positive push from developers and the market purchasing power, the second-hand property prices have slowed down. However, the recent second-hand market has been warming up, including Kingswood Villas in Tin Shui Wai, Tseung Kwan O New Town and other housing estates property prices hit a new high.

Knight Frank: Property prices rose 11-12%

According to Chen Chao-kuo, Managing Director of Savills Valuation and Professional Advisory Services, the policy address announced earlier has not been able to provide sufficient land supply. It is expected that the supply of private-owned flats will not increase much in the coming years and prospective buyers will enter the market as early as possible Mentality, is expected to continue to push prices higher.

Lam Ha-wen, Knight Frank’s senior director and head of valuation and consulting, said the rise in property prices was within expectation, but the monthly increase continued to narrow. The property price is estimated to be relatively stable for the rest of the year with an increase of about 11% to 12% for the whole year.

I believe the property market in the short term by the government measures greater impact, while the United States “reduced form” to raise interest rates, and the supply of more material will not lead to dramatic drop in property prices.

As property prices continued to rise, a survey of negative equity home mortgage loans released by the HKMA revealed that in the third quarter of this year, no negative equity residential mortgage loans were recorded. Zero negative equity was recorded for the third consecutive quarter.