Last Thursday, the US Federal Reserve, as the market expected to cut interest rates again by 0.25%, became the third rate cut this year
At the same time, Hong Kong has also recently cut interest rates unexpectedly, although the interbank interest rate in Japan has remained stable, but most of the local The Bank has also followed the US interest rate cuts to welcome local banks to cut interest rates for the first time in nearly 11 years in 2008, which has brought good news to the building owners. However, it also represents Hong Kong’s “red-hot" once again returning to “zero interest years".
Since the interest rate cuts by local banks, the current interest rate of many large banks, that is, the interest rate of “red and thin", many deposits have returned to zero interest rate, of which HSBC’s current interest rate of less than 1 million yuan is 0.001%, 5000 The deposits below the yuan are already zero interest rates
The situation of BOC Hong Kong is also similar. The price of 10,000 yuan is less than 0.001%, and the interest rate is below 3,000 yuan. In other words, even if it is a monthly deposit of 100,000 yuan, the one-year current deposit has only 1 yuan interest.
Investors will also change their established investment strategies and look for high-return investments to achieve “guaranteed capital" or even to maintain asset appreciation. According to the analysis, the market is in currency. Expansion, economically known as negative interest rate, driven by negative interest rates, investors are more inclined to preserve and increase their own property through various other financial channels, such as buying stocks, funds, foreign exchange, gold, etc., so at negative interest rates Under the impetus, asset prices, especially properties, will increase significantly.
Between 2009 and 2018, Hong Kong has been in a period of zero interest rate and negative interest rate
During the period, local property prices have also risen sharply. According to the Rating and Valuation Department’s private residential property prices, the overall property price index of Hong Kong has appreciated substantially during this decade. 2.25 times, the increase in property prices during the period is really amazing.
Of course, this time the situation may be a bit different. First of all, in view of the fact that Hong Kong’s economy has already fallen into recession and the social and economic environment is unstable, the public’s mentality of entering the market is naturally prudent, and many will be changed to “cash is king." “Cash is King’s strategy to reduce investment and change cash. In the continued economic downturn, the price index is hard to be affected. Inflation is difficult to sustain, or even deflation, and the driving force of negative interest rates will disappear. .
Therefore, overall, although the return of zero interest years may bring some momentum to the property market, the overall market outlook will still depend on the future economic trend. The Sino-US trade negotiation process and the changes in local social events still affect the property market. The essential.