Weak economic prospects and high interest rates in Hong Kongs residential market

Thanks to policy promotion, the sales of new housing and second -hand housing in Hong Kong have rebounded, but this growth may be difficult to continue due to weak economic prospects and high interest rates.

Bloomberg News reported on Monday (October 28) that the Lianlian Property Data shows that in Hong Kong's Chief Executive Li Jiachao's release of In the seven days after the third policy report , the transaction volume of the new building increased by 20%over the same period; the Central Plains Real Estate data also showed that within one week after the Policy Report was released, the transaction price of second -hand housing in Hong Kong rose 0.5%.

However, Hong Kong real estate agents are skeptical of the sustainability of residential sales growth.Although it has improved in the short term, Hong Kong faces high -loan costs and weak economic emotions, allowing more people to wait and see for house purchase.

Rosanna Tang, director of the Hong Kong Research Department of Dede Liangxing in the United States, believes that the housing market is largely affected by the factors of interest rates and economic circulation. In additionThe stimulus effect of the residential investment market is limited.

When the house prices in Hong Kong are hovering at the low point in the past eight years, the Hong Kong government relaxes the mortgage loan conditions of residential properties in October this year, allowing buyers to pay lower down payment, and the number of loans of all residential properties increase increases increaseTo 70%.

In the luxury home market, the Hong Kong government announced that a residential transaction of not less than HK $ 50 million ($ 8.52 million) can be included in a new capital investment plan. The rich can invest at least 30 million Hong Kong dollars to obtainResidence right.

Before that, in cooperation with the Federal Reserve's interest rate reduction in September, the Hong Kong HKMA announced that the basic interest rate was 0.5 percentage points.However, Hong Kong's one -month inter -bank borrowing rate is still about 4.2%, and almost all new mortgages are linked to floating interest rates.

Hong Kong is also subject to the downturn consumption, the slowdown of China's economic slowdown, and the uncertainty of geopolitics.

UBS economist pointed out in a report that the above measures launched by the Hong Kong government are not enough to reverse the trend of falling house prices.The effect of measures.