2019 is about to end. This year’s property market in Hong Kong is like a roller coaster
Residential property prices have increased sharply at the beginning of the year. In the following months, it has been affected by negative factors such as the external and political atmosphere. It has more or less affected investors and buyers ’desire to enter the market. The market generally has a wait-and-see attitude, and some housing prices have begun to adjust, offsetting some of the increase in property prices in the first half of the year, and returning to the beginning of the year. It is expected that the annual increase in property prices will only be about 3%. Users and investors will gradually re-enter the property market.
The government recently released the 2019 Annual Progress Report of the Long Term Housing Strategy, projecting a total housing supply target of 430,000 units over the 10-year period from 2020-21 to 2029-30, which is 10 years from 2018-20 to 2028-29 from 2018 The announced supply target of 450,000 units will be 20,000 fewer.
The supply ratio of public and private housing is 70:30. The target is to provide 301,000 public housing units in the next ten years, of which 210,000 are public housing and green homes and 91,000 other subsidized and sold units
The volume is only 272,000 units, which is still 29,000 units short of the target. As for the supply of private housing units, the target is 129,000 units, which is 6,000 units less than the 135,000 units proposed last year.
From this point of view, the supply of private buildings will gradually decrease in the future
Under the situation of oversupply, existing private buildings or newly completed first-hand houses will become more sought-after, and will naturally stabilize the long-term property prices in a high-quality location. Property has become more expensive and more resilient. As for public housing, before the new supply is in place, it is expected that some of the sources of subsidized houses for sale will be transferred to small and medium-sized private buildings in the city, and the prices of small and medium-sized houses are expected to fall by 5% to 7%.