The factors surrounding the property market are still in the industry.
The US Federal Reserve announced that it will not raise interest rates this year. The industry immediately turned to optimistic about the prospects of Hong Kong’s property market. It even believes that the May property price index can regain its historical high in August last year. However, Sino-US trade wars, economic growth in the Mainland, and government housing policies are still plaguing the property market. Home buyers need to be careful before entering the market.
The trade war has not been resolved
Hong Kong banks have low interest rate hikes this year. There is no denying that the property market will have a positive stimulus effect, but home buyers cannot ignore other factors. For example, the Sino-US trade war that has been plaguing the trend of property prices in Hong Kong in the past few months, although there have been good progress in recent negotiations, it has not yet been fully resolved.
There are international rating agencies that will reduce the global economic growth forecast for 2019 from 3.1% to 2.8%. The government work report issued by Chinese Premier Li Keqiang at the beginning of the month will reduce the economic growth target this year to 6% to 6.5%. I believe Hong Kong’s economic growth is also affected by Dragged down, there is a certain pressure on the property market.
In addition, the short-term supply of residential properties has not risen sharply, but the government introduced a new vacant tax last year to speed up the new price cuts and become the main trigger for property price adjustment. The relevant taxes are still plaguing developers. Recently, several new discs have been significantly reduced in the market.
When the Chief Executive Lin Zhengyue attended the forum yesterday, he stressed that he was worried about the recent rise in property prices in Hong Kong. He reiterated that the only way to alleviate the housing crisis in Hong Kong is to increase the role and function of the government, reflecting that the government will not reduce the short-term in the short term.
Second-hand disk source reduction
Another factor that plagues the property market is that the second-hand housing market has narrowed its market share, and the price of small owners has rebounded sharply, further leaving the public’s affordability range. At the beginning of the month, the statistics of the district estates in the districts were counted. Take the popular shopping home in Depot Garden as an example. There are only 2 key trays. The admission price has increased from 4.2 million at the beginning of the year to 4.9 million.
In a nutshell, the US does not raise interest rates to benefit the mortgage-paying people, but whether the home buyers are rushing into the market because the United States does not raise interest rates, it is indeed necessary to carefully count.