Hong Kong proproperty market reached inflexion point, government should introduce counter-cyclical policies as soon as possible – Centaline founder

 

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Hong Kong’s property market may have reached an inflexion point and the government should withdraw the spicy measures and introduce counter-cyclical policies as soon as possible, said Shih Wing-ching, the founder of Centaline Property, in an article. 

Property prices have fallen by more than 15% in 2022, the number of flats released in the secondary market has increased, but the number of transactions has dropped, and small property owners who want to cash in have to cut prices to sell their flats; banks have also repeatedly lowered the valuation of flats when providing mortgages, which indicates that the banks are becoming more conservative in their assessment of the future market, he said.

The sales of new flats in the primary market are not good, and developers have a slow return on capital and decided to not invest massively into land reserves, he added.

The US Federal Reserve expects the high-interest rate environment to continue, Hong Kong is losing population, and de-globalisation has constrained Hong Kong’s role as a super broker, he said.