Since the 1960s, the price of property has fallen by more than 30% in a period of only three times, namely the riots in 1967, the Sino-British negotiations in 1981 and the Asian financial turmoil in 1997
These three times are the periods when property prices have fallen more, with average declines of about 42%, 32% and 65% respectively.
There are many factors affecting the rise and fall of property prices, including interest rates, economy, supply, policy and politics, as well as human factors
In the past, before there was no hot trick, there were speculators who helped the speculators. The speculators could concentrate on a certain type of unit, which would make the market supply and demand unbalanced, and the price would rise. On the contrary, when the market conditions are not good, the speculators will sell a lot, which will cause the price to plummet. At the same time, it will also cause the owners to sell panicly, causing the price to drop sharply.
In recent years, the government’s hot-selling policy has led to the disappearance of speculators in the market. At the beginning, everyone thought that this would make the price stable, but the results were not as good as expected. Most of the industry hosted the goods for a longer period of time, the market lacked liquidity, and the price was stable. But most of the time it only rises steadily, but rarely falls.
Flats are often fleeting
After the reunification of Hong Kong in 1997, the buyers of the luxury residential market turned from British capital to Hong Kong capital. In particular, after the SARS in 2003, property prices rebounded from the bottom, which led to an increase in the wealth of Hong Kong people. Coupled with the rapid take-off of the Chinese economy in the past 10 years, the three-year free travel scheme has also enabled a large number of mainland residents to flow to Hong Kong. They will slowly come into contact with and understand Hong Kong’s oriental pearl. Hong Kong is a free and economically prosperous city. Investment from people all over the world, especially from the Mainland, has created a higher level of property prices in Hong Kong. This proves that Hong Kong buildings are expensive to buy but no mistakes are made, and long-term holdings will eventually rise. Especially after entering the market during the recession, the rebound afterwards can be very large. However, every time the city is quiet, both users and investors have a mentality, that is, they want to be as good as possible. Whenever there is a cheap property, they will think that the low is not low, and they often miss the opportunity to enter the market. The experience that history brings to the author is that the flats in the market tend to be fleeting.