China and overseas to continue to expand the port market, next year’s property prices are expected to 5% volatility
In recent years, the Chinese consortium has played a pivotal role in the real estate market in Hong Kong. China Overseas (00688) is one of the old-fashioned developers in China. The company’s managing director, Wei Weiguang, pointed out that the company has a positive attitude towards the Hong Kong real estate market and will continue to develop in Hong Kong.
Yu Weiguang, Managing Director of China Overseas Real Estate, said in an interview with this newspaper: “Hong Kong real estate is a mature market: rigid demand is strong, investment market is always there, and the two companies are still optimistic about the prospects of Hong Kong’s real estate market. I believe the property market in 2019. It will maintain a healthy level of development and it is estimated that the property price will fluctuate by about 5%."
Wei Weiguang continued, the performance of the property market is closely related to the economic trend of Hong Kong. Since the middle of this year, the Hong Kong-Zhuhai-Macao Bridge and the high-speed rail have been launched. The national positioning of Hong Kong has become an international science and technology center, and the planning of the Guangdong, Hong Kong and Macao Dawan Districts is a new source of power for Hong Kong’s economy.
Second, another factor affecting the trend of property prices is the supply and demand problem. According to the latest “Private Housing Primary Market Supply" published by the Transport and Housing Bureau, as of September 30 this year, the new supply figures for the next three to four years will be 93,000, which is an average of about 23,000 a year. However, there are certain variables in the potential first-hand supply of about 23,000 residential units per year. It still depends on the development of the project and may not be launched on time.
In addition, the Government’s annual land sales plan to provide a target of 18,000 gangs has not changed. Even though the new housing policy announced that nine 10,600 private residential land will be converted into public housing development, it will be implemented in different years and there will be no potential new supply in the short term. Bringing impact, it is expected that the short-term supply will remain stable at the level of 90,000. Based on the above data, it can be seen that the supply will be stable in the next few years, which will help the property market to develop steadily.
As for purchasing power, Wei Weiguang pointed out that Hong Kong people have a strong family concept. Many parents have taken precautions to purchase property for their children, especially small and medium-sized units. The demand for users is still strong, and rigid demand exists, and the market is expected to have sufficient capacity. He said that the economy performed well and the wages in the market increased. The unemployment rate fell to 2.9%. It was the first time in nearly 20 years and the supply capacity of the building was maintained at a stable level. These factors have a positive impact on the Hong Kong property market.
The port is still low interest rate
In addition, in terms of interest rates, the pace of interest rate hikes in the United States is slow, and the market has already expected the Fed to raise interest rates. The news has been digested. Even if local banks follow the interest rate hike, the impact is unlikely. Compared with 1997, the interest rate for the year was over 10%. In contrast, Hong Kong is still in a very low interest environment. “Although the recent trend of property prices is slightly weaker, and the Sino-US trade wars have caused some buyers to take a wait-and-see attitude towards the property market, the transaction volume has decreased, but it can be regarded as a short-term reasonable market adjustment. In the long run, it is believed that the property market will maintain a healthy development level in 2019. "
As for the Government’s launch of the Land Sharing Scheme, Mr Wai said that the company welcomes the increase in land supply and brings a win-win situation for the public, the Government and the developers through different schemes. It can also solve the housing shortage problem. He hopes that the government will announce the details of the plan as soon as possible, and more effectively use the land, which is a positive energy for real estate.