S & P property prices rose 5% this year

Reporter Zhao Jianqiang: Hong Kong property prices rose more than 10% last year. Outlook This year, S & P analysts expect the property market will not be as strong as last year. The bank believes the liquidity in the market is still abundant this year. However, under the influence of rising interest rates, property prices are expected to register a 5% increase in property prices this year. Among them, the demand for fine products in the fine denominations of the New Territories, under a substantial increase in supply, may become saturated and property prices will be under pressure.

S & P pointed out that the supply of small units continued to increase and interest rates gradually increased. Many developers used to provide up to 80% of these units for mortgages, introduce a batch of incapable first tranche and have difficulty in obtaining credit facilities in general commercial banks Buyers. The bank fears that if some buyers can not turn over their properties after three to five years of purchase, the owners may not be able to afford the mortgage repayments. As a result, the prices of uncompleted flats may fall and the overall property prices will be under pressure.

As Chief Executive Cheong Yue-e hopes to tackle the property market through increased supply, in particular, to normalize the Green House scheme and introduce the first-on-plate project, S & P believes the increase in supply will have a limited impact on property prices in the short run.

In terms of rentals, S & P believes retail rental rents will benefit from the recovery in the retail market, especially as sales of luxury goods propelled the retail sector recovery. As for office property rentals, the increase is expected to be limited.