Fantasy government to save the property market? Lin Zheng: You can take advantage of it.
New housing policy, trade war broke out, and the rate hike cycle in Hong Kong started, and the global economy tends to slow down. Various factors are superimposed. Property prices in Hong Kong continue to fall, and second-hand property prices are affected. Especially remarkable. When the second-hand entry into the winter, the property industry has called on the government to “reduce the hot". However, when the Chief Executive, Mrs Lam, attended the “Hong Kong Economic Summit 2019″ yesterday, he said that if the Government had the idea of bailout due to the recent adjustment of the property market, “you can take a break." “."
In June this year, Mrs Lam launched a “six measures" to curb rising property prices, including the introduction of a vacant tax and the final sale of green homes. In addition, a number of uncertainties such as trade wars, interest rate hikes and economic slowdown in the Mainland, the property market Since August, there have been signs of a turning point, and several property price indices have continued to fall. Based on the obvious downward adjustment in property prices, the property industry has earlier called on the Hong Kong Government to “reduce the spicy", such as withdrawing SSD (extra stamp duty) and relaxing stress tests. Regarding the appeal of the industry, the Government has not turned a blind eye. Apart from the fact that the Secretary for Transport and Housing, Mrs Chan, has pointed out that the Government has no intention of “reducing the spicy", the Chief Executive, Mrs Lam, has even pointed out that the Government will not seek to rescue the market due to the adjustment of property prices.
Mrs Lam attended the “Hong Kong Economic Summit 2019″ yesterday. According to the Rating and Valuation Department, property prices have fallen by 3.7% since the beginning of August. However, the decline has not been able to offset the increase since this year, let alone catch up with Her rise since she took office. She continued to point out that although some people think that the fall in property prices is a bad thing, she thinks it is a good thing. It is even more frank that if the market holds illusions, the government will think that the property price will fall and the market will be rescued.
Industry: The government has a set of mechanisms
Regarding Lin Zheng’s remarks, Li Haige’s head of research, Chen Haichao, said that he understands that the Government has its own policy needs and has a mechanism to measure when it is “smooth" or “smooth". It is estimated that the Government may still think that the current price decline is insufficient. Failure to confirm the property market turn. He pointed out that compared with the downward adjustment of property prices in 2016, property prices fell by about 13% at that time and the Government did not reduce the price. Therefore, it is estimated that the property price should fall to 20% or above before the Government will consider considering the relaxation measures.
Chen Haichao also said that since the release of the “six strokes", the purchasing power of the market has been transferred from one to two. The vacant tax and the impact of the low number of second-hand mortgages, the second-hand trading volume has been narrow at a low level since 2010, and has a significant change from the previous ecology. Therefore, he pointed out that if the market is to be reactivated, it is proposed that the government can relax second-hand mortgages. For example, if the first-time home buyers purchase second-hand properties, the market can provide a higher number of mortgage plans to help young people get on the bus.
Bu Shaoming, chief executive of the Midland Real Estate Department, also believes that the current market is too concentrated to buy a first-hand building. This is due to the SSD (extra stamp duty) that the government has implemented for many years, which directly reduces the second-hand release and keeps trading quiet. Therefore, he also suggested that the government should relax the SSD to release the second-hand disk source to diversify purchasing power. As for the Government’s statement that “the rescue of the property market can be repeated", Bu Shaoming said that everyone expects that the government will not move too fast and is not surprised. He maintains the view that property prices will not fall by more than 10% next year.
In addition, Chen Yongjie, vice chairman of the Asia-Pacific region and president of the residential sector, said that the government is not expected to recruit the property market because the decline in property prices does not necessarily affect the people’s livelihood. Understanding the people’s livelihood issue is the government’s top priority. However, he is worried that the property market and the stock market will go downhill at the same time, which will further affect the Hong Kong economy. The government will save the Hong Kong economy.