The SCMP's Property post carried a very bullish article on the Hong Kong residential property market. Key points to note:
1. new supply for each of the next 3 years is estimated at around 12,000 units (compared to 20-25,000 units a year on average over the last decade);
2. market activity driven by end users rather than speculators (unlike the 1990s boom);
3. rents rising in line with price increases;
4. stock market profits and pay raises are "buoying" home buyers;
5. affordability levels remain in the "comfort zone" of buyers.
Oddly, there was no mention of lower interest rates or liquidity. No negatives were cited.
The experts quoted predicted price rises of 20-30% in 2008 (up to 40% in the luxury sector).
This makes the Hong Kong market look very different from parts of the US market.
Unfortunately, it will be a while before I can put together a deposit for another property.
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