18/5/2018-6

Property prices are not doubled over 1997 highs

In 1997, it was once the highest peak of property prices. At that time, there were still many people madly entering the market. After a financial turmoil and the direction of the government’s supply policy changed, the economy turned down and many owners were turned. And investors’ funds are constantly evaporating, causing buyers to enter the market to be eliminated.

Property prices have been declining since 1997. There are many buyers who have already entered the market and try to stay in the hope that they can be born again in a short period of time. Unfortunately, things went against expectations. After that, property prices fell by at least 10% or more per year on average. Until the ultimate fall in 2003, they slowly wheezed. The drop in property prices was a soft landing, coupled with the opening up of the free market in the Mainland. In the dawn of light, property prices have only risen.

However, this time the ultimate fall, the accumulation of property prices

The drop was as high as 70%, and many buyers who had already entered the market were obsessed with the situation. Only the eclipse was allowed to leave and the good luck could leave. Unfortunately only the bankruptcy ended.

Only 80% increase from the previous high

In today’s market conditions, property prices have rebounded from the trough and have risen several times since 2003. However, if calculated from high levels, property prices have only increased by about 80% so today, many people think that the current property prices are very expensive; but if Everyone meticulously analyzed that property prices have not yet doubled since the highs. On the contrary, if it is not implicated in the slumping market in 1997, buyers who entered the market in the past 10 years have very rich wealth today. This is also the reason why the current property prices are getting higher and higher.

Under the multiple growth effect of Hong Kong’s economy over the past 10 years, many powerful buyers have been created. Most of these buyers have not experienced the trauma of 1997; on the contrary, they have taken full advantage of the economic take-off and property prices are soaring. Opportunities, even if property prices are to rise again today, will only be beneficial and harmless to them. The increase in wealth of these buyers has completely outperformed the increase in property prices.