“Hong Kong’s Property Market is Going Down”

According to the full media report of Dagong Wenhui, after the first interest rate hike in Hong Kong in 12 years, the general manager of JPMorgan Chase, Liang Qichen, said in an interview that the five major signs indicate that the Hong Kong property market is going down. These five major signs include:

1. Reduced number of mortgage applications

According to the Central Plains mortgage data, the number of mortgage applications in September recorded the largest decline in 20 years, with only 7977 cases, a drop of 56%.

2. Luxury home sales plummeted

Recently, some buyers have set aside $7 million, just to abandon the purchase of a luxury mansion on the top of the mountain. This is just one part of the recent luxury market situation. According to the transaction data of 35 luxury residential projects, Lijiage also showed that September was the least month for luxury homes since 2005.

3. Real estate agent starts holiday

One of Hong Kong’s real estate agents, the United States, the worst performing agent of the 100 worst performers last month, the worst 10 were fired; the remaining 55 poor need to pay 3 months unpaid leave, while the remaining 35 performance is not outstanding Will be included in the list of observations.

4. Second-hand building starts to reduce prices

According to the agent’s transaction, the second-hand building began to show a large price hike. The price of the two-bedroom unit in Kowloon Bay was 28% lower than that in August, or $1.9 million. The price of the unit in the neighbouring area was also 17% lower than that in August.

5. New building sales fell

As of October 28, the turnover of the new building was only $11.2 billion. Excluding the holiday factor, it was the lowest in 16 months. The number of transactions was only 1130, which was nearly half that of September.

Hong Kong property market enters the down cycle?

The Chief Executive of the Hong Kong Monetary Authority, Mr Chan Tak-lin, said at the Legislative Council Panel on Financial Affairs today (5th) that the current property market decline has only been going through several weeks. It is still too early to determine whether it will enter the down cycle. It depends on property prices, trading volume and economy. A systematic indicator such as keynote and market sentiment requires more time to observe.

According to the HKMA data, property prices in Hong Kong began to fall in August. According to the Rating and Valuation Department, property prices fell 1.5% in July-September and 2.6% in the Central Plains City Leading Index. In this regard, Chen Delin said that when the Hong Kong property market is in a rising cycle, the Bureau has launched eight rounds of counter-cyclical measures; when it is confirmed that the property market has entered the down cycle, some measures can be relaxed.

Chen Delin also said that Hong Kong has a stable tone and ample earthquake resistance, and it has a strong ability to cope with economic downturn. However, everyone still has to carefully manage risks and cope with possible fluctuations in the future.