60% of the family to pay off the mortgage standard goods prices difficult to fall home financial stability parents can support
Matthew Chow, director of corporate ratings at Standard & Poor’s, said that the affordability of residential properties in Hong Kong is getting lower and lower, but it is expected that the property market will not be substantially adjusted in the third quarter of this year. Hong Kong’s home ownership still exists. The family has paid off the mortgage and the parents can support the purchase of their children.
S & P expects the property market in Hong Kong will not be adjusted in the short term, but the report also remind investors to pay attention to China and the US economic situation, because the two places and the Hong Kong economy close. External economic events, or impact on the property market in Hong Kong. In fact, the Hong Kong property market on the previous decline is due to the global financial crisis caused.
Asia-Pacific property market risk rising
The report also expects third-quarter Asia-Pacific credit to improve, mainly due to the region’s macroeconomic trends to improve and improve the financing situation. Asia-Pacific credit market is still facing the potential risk of rising interest rates, due to continued borrowing foreign currency, the Federal Reserve interest rate expectations, the risk will gradually increase. US interest rate hikes will also reduce the demand for buildings. Banks will also raise their lending rates. Investors who are highly leveraged in the past will be affected. Investors should pay attention to the risk of property market in Asia Pacific, S & P will be the property market risk ranking rose from No. 4 to No. 3, the risk level from the “neutral" raised to “increase".
The Financial Secretary, Mr Timothy Chan, has repeatedly warned the property market in Hong Kong that the property market in Hong Kong is in danger and is subject to external factors. The rate is difficult to estimate. It is prudent for prospective home buyers to know that no one knows the depth and intensity of the adjustment. But support the Hong Kong financial system, that can withstand the impact of the property market callback. The government has taken steps to increase supply and ease demand, and the current cycle has not seen signs of collapse.
Xie Guozhong: the last “escape" opportunity
The Central Plains, which reflects the trend of second-hand housing prices, has been the highest for the 17th consecutive week and marks the end of Hong Kong’s property prices. Xie Guozhong, an independent economist who had raised the Asian financial turmoil in 1997, warned the property market that it was in a state of high winds and bangs at any time and then entered a 20-year depression. Mr Sheung said in a recent visit that the interest would rise and that some people still thought that property prices would rise again. This idea was irrational and suggested that owners should sell their property as soon as possible. “This is the last chance."
Mainland, the S & P refers to the first five months of this year, the overall turnover continued to grow, mainly by the three or four city support, first-tier cities began to fall in the second half of the transaction will slow down, the annual property prices will fall 5 to 10%.