Hong Kong property prices continue to be high, the public affordability of property prices is getting lower and lower, the rating agency Standard & Poor’s corporate rating director Matthew Chow said that more than 60% of households in Hong Kong have paid off mortgage loans, coupled with the ability of parents to help the next generation of home buyers, It is expected that there will be no major adjustment in Hong Kong property prices in the short term. However, the S & P also remind investors, if the external economy crisis, the Hong Kong property market is also immune.
Hong Kong property prices continue to be high, there will not be a major adjustment in the short term.
Senior financial expert Lin Yiming said that property prices have now exceeded the affordability of the general population. If we want to adjust only natural things, we do not understand why parents have the support of the next generation. The mortgage burden can support property prices to continue to rise.
Ji Wenliang, Chief Executive Officer of Ji Hui Group, also pointed out that the redemption of the unit to help children home is very dangerous, close to retirement when the back of a large debt, regardless of work or health slightly worse, it may not be able to pay the full amount of residential units The
Standard & Poor’s Asia Pacific five major risks
However, Baptist University Finance and Decision-making Associate Professor Mai Jicai that the analysis is correct, parents will generally help to pay the first phase, the children are self-supply. He pointed out that such users would generally not be able to sell their property even if the property prices were adjusted slightly downwards. In the absence of incentives under the disk, second-hand disk source will continue to low, the property market support.
Pay attention to the impact of Sino-US economic
It is worth noting that although the S & P expect the Hong Kong property market in the short term will not be adjusted, but the report also remind investors to pay attention to China and the United States economic situation, because the two places and Hong Kong’s economic relations, external economic events may be Hong Kong The property market caused by the impact, in fact, the Hong Kong property market on the last decline, is due to the global financial crisis caused.
Mr Lam pointed out that property prices continued to rise in the past eight years, mainly due to the low interest rate, the increase in the supply of money by the United States and the continued low supply of property in Hong Kong. Today, the three are reversing the gradual upward interest, the US Federal Reserve’s “schedules” and the chances of falling property prices in the next two years, including more than 20,000 flats per year (including availability of flats) Increase. He kept the end of the year at the end of the year.
There are foreign investment bank analysts predict that property prices will remain stable this year, but there are so many variables next year, including changes in the supply of real homes is too large, and how fast the US rate hike, so that property prices become unstable The
Asia-Pacific property market risk “increase”
S & P also reminded, in addition to Hong Kong, investors should also pay attention to the overall risk of the property market in Asia Pacific, Asia Pacific region in the five major risks, the S & P will be the property market risk ranking from fourth to third, the risk level by “Neutral” raised to “increase”, while interest rate and foreign exchange fluctuations, as well as political risk were ranked first and second.
S & P also said that a number of cities in the Asia-Pacific region have launched measures to cool the property market, but the property prices are still high, the increase in household income has been unable to recover the increase in household debt, so S & P believes that the property market in Asia Pacific There is an upward trend in risk.
Estimated the volume of the mainland set into a drop
In all regions, the proportion of household liabilities in mainland China is the highest, household liabilities account for more than 110% of GDP, while household liabilities in Hong Kong account for about 30% of GDP.
For the mainland property market, Matthew Chow said the involvement of the central authorities to introduce restrictions and tightening financing channels, the mainland property market is expected to gradually slow down in the second half to eighteen this year, this year’s volume will fall 5 to 10%.
In addition, with the US Federal Reserve to continue to raise interest rates, the S & P is expected to Asia-Pacific market demand for buildings will be reduced, the banks will gradually increase the loan interest rate, means that the past low interest rate for highly leveraged investors will be affected.