Property prices are 'trending north'

Business | Kevin Xu 23 Jul 2019

Nearly 40 percent of respondents are considering buying a property over the next 12 months, while almost 60 percent expected a steady upward trend of home prices, according to a survey conducted by Hong Kong Property Services Agency.

The survey also showed 22.3 percent of respondents thought housing price movements was the most critical factor that affects house purchasing decisions, and 19.5 percent regarded interest rate movement as the key factor for home buying.

Recent social unrest may affect home inspections but may not necessarily impact prices, as demand remained rigid and property prices are more influenced by macroeconomic factors, said Hong Kong Property Services chief executive Richard Lee Chi-shing.

Lee also estimated that property prices will increase by 5 percent in the second half of the year, and the purchasing power in the secondary market will be released after ballot results come out for the Hong Kong Housing Authority's Sale of Home Ownership Scheme Flats in the second half.

Great Eagle (0041) launched the second price list of 100 units at Ontolo in Tai Po, with the cheapest flat priced at HK$5.6 million or HK$14,367 per square foot.

In the secondary market, a 270-sq-ft unit at Golden Lion Garden changed hands for HK$4.39 million, or HK$16,259 per sq ft, 9.29 percent lower than the price of another unit at the same floor of the same size sold in April. A flat at The Hermitage in Mong Kok measuring 807 sq ft sold for HK$30.3 million or HK$37,546 per sq ft.

In other news, the overall Hong Kong Interbank Offered Rate saw a rally yesterday. The one-month Hong Kong Interbank Offered Rate, linked to the mortgage rate, rose to 2.013 percent.

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