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Property prices bounce back 5% before mid of this year
2023-1-7
Entering the new year, the investment sentiment continues to improve. Taking the Hang Seng Index as an example, it has rebounded more than forty percent in the last two months. Once the market commentors were bearish and they predicted that the index would peak at twenty thousand points. Then the index would fall repeatedly from highest point to the lower position. However, the index rose more one thousand points since the first trading day of this year. As a result, it broke through twenty thousand points, the boundary between bulls and bears.
The Hong Kong stock market is booming.  The market observers widely suppose that the market will bounce back after the lunar new year. Now the situation has changed. The potential buyers worry about the property price will rise after January 8th., so they have been searching the target premises in recent days. In Kowloon, a proprietor sold out its premises in the first opening day for sale. If you still think that you can bargain a better price later, you will miss the opportunity now.
Until recently, the property market has shown signs of bottom out, amongst of which the trading volume has rebounded, the amount of the discounted price listings is less than before, and the wiggle room for price reduction is narrower. Moreover, the market sentiment tends to turn better since the influx of the mainland travelers after January 8th. As a result, the improvement of outlook will boost property market and the developers will therefore speed up arrangement to launch the new projects.
The developers aware the change of the perspective and they will adjust upward the selling price of the new projects to the market price level. If the new price level is acceptable to the public, they may add the price premium to second or third batch in a row. As the price level of primary market units has been rising, the secondary market units will follow to raise the asking price. Therefore, the small price hike is almost certain after the lunar new year.
Since the border crossing reopening and the normalization of the public policies, the property price will rise steadily. If there are no other major adverse events in the world affair, it is highly possible that the property price will rise 5% before the mid of this year.
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