DBS Vickers expected property prices to slow this year

DBS Vickers Hong Kong yesterday released its investment outlook on the overall property market in Hong Kong. YCH Chan, director of the bank’s research department, predicted that property price increases will slow down this year and there will be no double-digit increase. Also, if Hong Kong Prime Rate (P) is raised by 50 to 75 pips, property prices will be adjusted by 5% to 8%.

Some basic factors slip

Yau Chu-man said yesterday that property prices in Hong Kong have been rising for nine years. Some of the basic factors have seen worse. If the ratio of the mortgage-carrying floor increases and policy factors, it is estimated that there will be only a single unit increase in property prices this year and no more last year Into the rise. Among them, the prices of medium-sized and large-sized flats are expected to increase moderately in number of units, outperforming small flats, while flat-price flat prices have been pretty good.

He said the government’s relaxation of the Double Duty Stamp Duty (DSD) tax rebate period will help to release pent-up demand for property replacement. As the overall property market stabilizes this year, mansions and large residential properties outperformed the market. However, recent Hong Kong stock market ups and downs, Yau Cheuk-wen believes that if the stock market continued to fluctuate, the luxury market will be the first to bear the brunt, mainly due to large luxury market and financial markets.

In the face of the rate hike cycle in the United States, Yau said that the impact on P (prime rate) owners will be more significant. If Hong Kong’s prime rate is raised by 50 to 75 pips, property prices will be adjusted by 5% to 8%. In contrast, Buyers use H (HIBOR) and have the upper limit of the lock-up based on the best lending rate, less affected than the former.