Deng Chengbo: This property market so hard to crash there is a big difference 97 explosive pot “No scared dark gray rhinoceros”
Deng Chengbo, a veteran investor who has been engaged in property investment for more than half a century and has the reputation of “appraising the king,” did not comment on the property market. In spite of repeated record highs, property prices have hit a “do not understand” position. However, with abundant market capitalization and slow rate hike, I believe there is no problem with the property market this year. He also called on the government to allow the transition from industrial buildings to transitional buildings to speed up the supply of housing.
The successful Chairman Deng Chengbo has been involved in the real estate investment market since the 1960s. He pointed out that at the sale of Mei Foo Sun Chuen in Lai Chi Kok in 1967, the building price per square foot was just over 60 yuan and has risen to the present level (the latest average practical foot price is about 12,500 yuan ), It is expensive to “do not know description”. In the past, we did not expect any increase in property prices today. However, he remains optimistic about the property market even though the government has earlier proposed an economy or risks of “gray rhino.”
Estimated interest rate increased to 3% in two years
Deng Chengbo said that with his years of investment experience, “From the DPRK to the night, by empirical analysis, there are no problems with the property market this year.” He said that since the United States implemented quantitative easing, much money has remained in Hong Kong for investment and there will not be too many future rate hikes in the United States. “There is no scaring gray rhino.”
More than a decade ago the United States raised interest rates in a series of steps. The federal funds rate soared sharply to 5.25%. As a result, the Federal Reserve failed to make the same mistake again. He estimates that the rate hike in the United States will only be as high as 3% at most. “Even if this year increases by 4 times, it will only add 1% to the amount of money buried and will have to add up to 3% by two years.” In addition, They are professionals. They should not misjudge the market. “But everything is 100% solid. In short, property prices will hardly fall sharply.”
Deng Chengbo also analyzed that the property market was different from the time when the blast burst in 1997. At that time, members of the public used all their savings to buy flats. In addition, when the government was not familiar with the operation of the property market and subsidized too many people who were unable to enter the market to buy flats, they could not afford to plunge city. In recent years, property prices have risen. Many properties in the hands of the general public have revalued. By selling or adding properties to their properties, all are well-funded under the cumulative effect of wealth.
Promote workers to change the transitional housing construction
However, he admitted that young people are incapable of buying flats. “Even if there are 20,000 mosquito workers, inflation is too tight and less than 10 million mosquitoes a dozen years ago.” He said when he started his social work that year he was renting a flat at a cost of 200 yuan per month and he would not target on buying flats because of the long-term burden of buying flats.
Since property prices are too high, many people can not get in on the private housing market. They have therefore switched to public housing but the waiting time is very long. Deng Cheng-bo urged the government to speed up the housing supply. Consideration should be given to changing the property of the industrial property into a transitional one, with the government restricting the level of rent. This will help speed up the rate of people waiting for public housing.
He said that at present, many industrial land has been converted to residential uses by the government. However, the industrial buildings have not been rebuilt and are more suitable for conversion into transitional buildings. This will make land use more appropriate and believe that many industrial property owners Will cooperate.
As for the property spicy move, he pointed out that the new ad valorem stamp duty (DSD) is suitable for short-term and medium-term investors. However, long-term investors will inevitably feel harsh. Therefore, consideration should be given to buying property for a longer period of time without being subjected to resale and speculation. Refunds up to a half of the stamp duty; if tax refunds are not made, due tax should also be properly applied, for example, to address the service needs of the elderly, housing problems and to encourage innovation or technological development.