Taking into consideration the present political discrepancies that the country is going through, the plunge of the prices for private homes in Hong Kong for the fifth month straight in October shouldn’t come as a surprise to however readers; however, the silver lining in this configuration appears to be the rate of fall which is slower when compared to the earlier months. In October, the prices of the flats dropped by 1.3 percent in what is considered to be one of the world’s most expensive property markets while in September, it underwent a fall rate of 1.7%. According to the predictions of Mr. Thomas Lam who is the executive director of property consultancy branch at Knight Frank, the present social and economic status of Honk Kong will reflect themselves in the dipping prices in November and December, but, if lower interest rates are capitalized upon sincerely, it may lend some support to the statistics.
If we place the property sector alongside the tourism and retail branches, it will be clear that the former has experienced a blow relatively less severe than the latter two. For the past six months, Hong Kong has turned out to be the hotspot for incessant and vehement anti-government protests coupled with the infamous US-China trade dispute whose combined efforts have led to the worsening of matters. If we make an attempt to calculate the total decline of prices, it will sum up to 4.6% so far this year. With an aim to improve sales, the government has declared renewed flexibility of its policies where the first-time buyers can borrow around 90% of the net worth of the flats that cost up to HK$8 million. Additionally, the reduction of the mortgage caps and lending rate for first-time buyers has also helped the staggering rates to peep out of the dark dungeons in October. It is also expected that if the remaining part of the years goes moves according to the experts’ prophecies, there will be an implementation of vacancy tax that will stimulate developers to sell off the remaining units at affordable prices only to ensure that none of these flats go unsold by the end of the year making way for higher losses.
Nonetheless, Realtor Centaline has painted a completely different story altogether; as per the estimations, the sales confined to the secondary housing market will be on their highest level in the last month of the year, an exception of the last six months. The numbers are expected to swell by 40% more than that of October.
Coming to the overall commercial property pieces, that piece of income too has not met the expectations of the sellers and is most likely to follow the plunging trend of its contemporaries. We cannot keep away from accepting that the month of October recorded the highest bids on the Hong Kong property sites, but it was still not enough to at least near the estimations. It was Sun Hung Kai Properties that took away the final bit that was rolled out at the price of a whopping HK$42.2 billion.
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