DBS Vickers: Property prices this year, ascending units

Property prices in Hong Kong registered double-digit increases last year, and brokers generally think this year will slow down. DBS Vickers estimates that property price increases will slow to units this year, and Nomura expected the property prices to remain flat from last year.

Yau Chow Viaduct Director Yau Chiu Man said that property prices have risen for 9 years. Given the increase in supply and the influence of government policies, I believe this year’s increase will not be as good as last year. However, benefiting from the positive wealth effect of the overall economy in Hong Kong and the booming stock market, the government extended the “floor refunding” period from 6 months to 12 months and he is optimistic that he is expected to push up the demand for floor space. Medium and large units performance.

The first car plate effect discouraged unit price

As for the fine building, Yau Chiu-man means that the demand has been reflected in the past few years. At the same time, the government’s “first car-on-plate” program will provide more fine-knit supplies. The home buyers may not necessarily need to buy it in the private market. Smooth is already good.

The market expects Hong Kong interest rates to rise with the rise of interest this year. According to Yau Chiu-wen, if P (prime rate) rises by 50 to 75 pips and the ability to make contributions remain unchanged, we believe property prices need to be adjusted by 5% to 8% However, at present, there is still a large gap between H and P, and it is believed that P will only increase if we want to see a further sharp rise in the interest rate to be disbursed.

He added that unless there is a Black Swan incident this year, there is little chance of a substantial property market correction. Property developers prefer Xindi (00016) because of their low valuations and satisfactory property sales. Swire Properties preferred Swire Properties (01972 ), Which is expected to benefit foreign companies moving their offices from Central to East Island.

Nomura expected the government to announce a new round of land sales plans after the announcement of the Budget. It is expected that sufficient government land will curb land prices.