If the interest rate rose to 3% of the property market signal?
The new policy on housing policy and the start-up of the contraction in the United States have not yet caused any impact on the property prices in Hong Kong. The Department estimates that the index of private property prices for September was 340 points, up 0.27% on a month-on-month basis and rising for another 18 months. The new high, with a cumulative increase of 25%, is the longest rising wave in nearly 24 years with a single increase of 10.6% in the first nine months of this year alone.
In the short term, there is a chance that prices may slow down. It may be interest rate.
Flat for rent advantage diminished
Information shows that the HIBOR has been rising continuously from an average of 0.43% in September to 0.79% today, the highest level in nine years. The loan will be amortized over a period of 25 years with a loan amount of 1 million. The prevailing discount rate for the buyer is H + 1.38% (real rental rate 2.17%). Under the capped interest rate guarantee, the contribution rate was locked at 2.15%, representing an increase of contribution of about $ 165, representing an increase of about 4%.
Second, according to a slightly mortgage report, the Meridian Mortgage Rate Index (MMI), which reflects the prevailing mortgage rate, rose to 1.88% in September from 1.85% in August, with a chance of touching a 2% level in October reflecting the The burden on small proprietors is getting heavier and heavier. However, it should be noted that if the United States further increases interest rates, Hong Kong banks will follow suit. When the rate of interest-earning mortgage loans rises to 3%, the advantage for flat leasing will be weakened. The property market Will be turned around, so the interest rate rose to 3% will be one of the signs of the property market.
Another point is the past data show that interest rates plus 3 consecutive increases, each plus 0.25%, property prices will be pressured or softened, property market participants should pay special attention.
HOS second-hand source
On the other hand, the government started to speed up the sale of HOS flats. In the short run, it sold Tsui Ling Peak in Tseung Kwan O and Tsui Ming Terrace in Tuen Mun. A total of 620 flats, the highest level of $ 1.92 million, is a fine unit that is difficult to provide in private flats. With 95% mortgage repayments, if the government further increases the supply of HOS flats, it will surely grab second-hand buyers and discourage property price increases.