Wang Dongsheng: Hong Kong interest rates see 2% of the property prices are also hard to flood the lack of adequate funds, “a good study of this livelihood issues”

Hong Kong property prices soared 1.5 times over the past decade. The latest survey means that people should not eat or drink 19.4 years before they can succeed in home ownership.

Wang Dongsheng, Vice Chairman and Chief Executive Officer of Hong Kong-based Columbia Bank for two years in succession, believes that the global low-interest environment has been going on for some time. The proliferation of funds has also raised the public’s desire to buy bricks. Coupled with the weakening of the Hong Kong dollar, To property prices may be short-term decline.

As an HSBC banker, Wang Dongsheng pointed out in an interview that the inadequate supply of housing is an indisputable fact. After the 2008 financial tsunami, central banks in all countries introduced quantitative easing policies and aggressively printed silver paper. For example, the U.S. Federal Reserve implemented weak U.S. dollars 10 years ago and The low interest rate policy has brought trillions of dollars in new capital to the market while China has trillions of renminbi to stimulate economic policy, concluding that the market is full of money.

“Even if Hong Kong’s dividend was added to 2% (0.92% yesterday), the flood of funds could not see it to curb property price increases and property prices would not fall in the short term.” Wang Dongsheng explained that when the funds are flooding at a rate of Zero, the market will buy bricks, while the weak dollar is equal to other currencies, especially the strong yuan, attracting a lot of people from home to Hong Kong to buy, and further push up property prices. The renminbi was the strongest in 2013 with a premium of more than 20% to the Hong Kong dollar. The exchange rate has so far been stronger than the Hong Kong dollar.

3 indicators to assess the expected rise in property prices continued

Global economy and the stock market is also another factor pushing prices higher. “(Economic) Overall, Europe and the United States are turning around well while the stock market is performing well. It will also stimulate people to buy property. In the short term, property prices will not fall.”

The market is expecting the fastest increase in interest rates this year as interest rates rise, or turning Hong Kong’s property market into a turning point from rising to falling. Wang Dongsheng means he will follow the three aspects of property prices to assess the trend: 1) whether the funds are still in the market; 2) the trend of the global economy; and 3) how the performance of the investment market affects the wealth effect. In view of the trend of the three parties and the lack of supply in the Hong Kong property market, he expects property prices to rise in the short term.

The Central Plains City Leading Index (CCL) has risen from 67.59 to 167.51 since the beginning of 2008, which means property prices nearly doubled in 10 years. In order to curb housing prices, the government has repeatedly launched the tax spree in the past five years to restrict the demand for investment properties. Unfortunately, the property market has not cooled down. The current Chief Executive, Mrs Carrie Lam, plans to start with an increase in supply so as to ease the rate of increase in property prices.

At present, many people in Hong Kong have indicated that they will be on the bus in the foreseeable future. Wang Dongsheng lamented that the inadequate supply of land in Hong Kong is a long-term issue and needs to be worked out by various sectors to study how to solve the problem. “At present, there are some developers who are going to build 200 or 300 square feet of flats. However, some people intend to give birth to their children and whether they will still move in. There are several million yuan for a small building. ; Both of them are going to work and who should be taken care of by children? The workers are required to be larger and the places where they are to be found are bigger. All these different issues must be properly studied and the people’s livelihood has always been the problem. ”

Since the Hong Kong Building is unaffordable, Wang Dongsheng suggested that wage earners should not limit themselves to the development of Hong Kong. Except for overseas construction, they are expected to break through to their own. They hope to find more spacious living space. “There are many opportunities outside. The Chinese are quite hardworking people. Rarely do they see the Chinese going overseas without food, because we are better off than men.”

Enterprises want to attack Hong Kong land rent prohibitive

He said that companies have sent staff to work overseas and accommodation is much larger than that in Hong Kong. Overseas residents may live in a thousand-kilometer-long living environment and so many people do not want to go back to Hong Kong. You may consider jumping out of the box and going overseas. “People in New York City on the east coast of the United States can work in California on the (West Bank) shore and mainland people will work in other provinces and cities. Hong Kong people have always hesitated to go abroad.”

High cost of living, commercial rent is not low. Wang Dongsheng pointed out that it is really unaffordable for a high-tech company to settle down in Hong Kong. Even large enterprises have the same problem. “Some corporate clients have said they want to integrate business in Asia back to Hong Kong. However, Obstacle (but deter). “