High property prices in Hong Kong, limited short-term improvement

Hong Kong property prices have been cited as the world’s most expensive in several surveys

Julius Baer Private Bank pointed out that there is a long-term problem of structural supply shortages in the Hong Kong property market, which has led to high property prices. At present, Hong Kong property prices are far from the second place. I believe it is difficult to narrow the gap in the short term. Hong Kong property prices will still be the most expensive in the world in the next few years.

Structural supply shortage is difficult to change in 2 to 3 years

Deng Qizhi, Head of Research, Julius Baer Private Banking Hong Kong, pointed out that there is a long-term problem of structural supply shortages in Hong Kong’s property market. It cannot be improved by simply increasing short-term supply. There will be no major changes in supply, and the low interest rate environment in the United States will indirectly cause Hong Kong interest rates to hover at low levels.

Julius Baer earlier released the “Global Wealth and High-end Living Report 2020”

Asia accounts for 5 of the top 10 most expensive cities in the world, and Hong Kong is the most expensive city in the world. In order to relax the government’s first mortgage ceiling earlier.

He believes that due to the decline in the first installment, the public would prefer to buy a larger amount of housing, and it is estimated that the measures will cause greater selling pressure on small-price properties. “At present, customers are still a little worried about the situation in Hong Kong. Unless the situation stabilizes, they will consider buying more properties in Hong Kong. Otherwise, they tend to observe the market conditions first, and do not rush into the market.”

Huang Peili, Executive Director of Julius Baer Private Bank ’s Asia-Pacific Markets and Wealth Management Solutions Division, said that social media ’s influence on the younger generation is even greater than product pricing. With their higher purchasing power, I believe that online spending will continue to increase in the future. In recent years, the consumption of luxury goods in Hong Kong has decreased, and the correlation with the economic downturn is not great. It is believed that the impact on exchange rate fluctuations is greater.

She continued that Gen Y and Millennials ’shopping thinking will change, paying more attention to conscientious consumption, willing to provide a higher premium to sustainable products, and paying more attention to the materials used in products and the place of origin of products when shopping, for example He said that when buying a car, he would choose to buy a hybrid car.


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