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Rising GDP and bank valuation spark off upward pricing
2023-2-25
After the Lunar New Year, the big rebound of the property market did not emerge as the analysts expected. Based on this mild bouncing back in the property market, the public worries that the property market will fall again. But, half a month later, there were some sporadic transactions on high prices regardless of shops,  luxury premises or some first-hand residential projects. Obviously, this sluggish rally was not driven by some of significant mass new residential projects.
For developers, if they can launch a significant new project, it can quickly spark off the purchasing power in the market in a short period of time. As a result, it helps to cut down the inventory massively. However, the current political and economic situation are still unclear, so the developers would have preferred implementing low prices strategy to lure the buyers digesting inventories. A few weeks later, as more favorable sales figures are released, the developers will have stronger confidence to launch the bigger residential projects.
Due to the better business sentiment, the upward trend of property price would be confirmed in about one to two months later. Therefore, the property prices index will go naturally higher in the second quarter.
Recently, the property sale & purchase transaction volumes get distinctly increased but property price is only lightly changed. Refer to the bank valuation, an average valuation price has been raised by more than 5% from lowest level. The higher valuation price has been laying a solid base for the healthy rebound of the property market.
In terms of the overall economy, Hong Kong’s gross domestic product will be between 3.5% to 5.5% this year. From 2024 to 2027 years, average annual growth rate will reach 4%. Benefiting from reopening border, the economies of Hong Kong continues to grow at an average rate, which will help the property market maintain a stable upward trend in the next few years. In fact, the resumption of travel is expected to provide much support to the battered economies of Hong Kong.
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1. Beauty shops back in Sheung Shui 2023-02-25 12:23:29 |
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Prospects for shops in the "cosmeceuticals streets" of Sheung Shui are expected to look brighter this year now that the mainland has fully reopened its borders with Hong Kong this month. These streets, which are occupied by shops selling cosmeceuticals - cosmetic products that claim to have medicinal or drug-like benefits - were packed with mainlanders before the pandemic. And after three dismal years, a street in the North district town, which is one stop away from the Lo Wu crossing, saw four shops rented recently. |
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2. Deficit is expected tomaintain 2023-02-27 16:25:32 |
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Hong Kong will struggle to balance its budget as it launched a “sizeable” budget amidst a wide fiscal deficit, S&P reported. The Hong Kong government projected spending to exceed $760b and a deficit reaching HK$119b in the fiscal year ending in March 2024, which is wider than S&P forecasts. “The government could take much longer to balance its budget, especially if it keeps rolling out support measures each year," Rain Yin, S&P Global Ratings analyst, said. |
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3. Hk and Shenzhen held meeting 2023-02-28 09:13:28 |
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Hong Kong Deputy Secretary Michael Wong and other department heads went to Shenzhen to meet the city’s Municipal People’s Government for the first Task Force for Collaboration on the Northern Metropolis Development Strategy meeting. The two sides exchanged their views on matters relating to the development of the Northern Metropolis and enhanced co-operation with each other. Among the department heads present at the meeting were Secretary for Development Bernadette Linn, Secretary for Constitutional and Mainland Affairs Erick Tsang, Secretary for Environment and Ecology Tse Chin-wan, Secretary for Transport and Logistics Lam Sai-hung, Secretary for Financial Services and the Treasury Christopher Hui, Acting Secretary for Security Michael Cheuk, Under Secretary for Culture, Sports and Tourism Raistlin Lau, and Under Secretary for Innovation, Technology and Industry Lillian Cheong. |
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4. Yoho Town三房尺價創新高 2023-02-28 15:44:53 |
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YOHO Town亦錄得新高成交，王勤學指出，YOHO Town 6座高層D室，實用面積432方呎，2房間隔；今年2月叫價775萬元放售，終減價72萬或9.3%，以703萬元易手，呎價16273元，成交價重越700萬元，亦是今年屋苑2房同類單位新高價。 |
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5. China property transactions surged 32% 2023-02-28 17:30:55 |
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Property transactions in 16 major Chinese cities surged 32 percent month-on-month in February, according to the China Index Academy. The surge helped bring the year-on-year decline down to 7.6 percent, the real estate research institute said. The turnover rate of the market in first-tier cities increased by 5 percent on a monthly basis, with Guangzhou and Shenzhen experiencing the most significant growth rate of 79 percent and 57 percent respectively. In contrast, Shanghai saw a drop in both monthly and yearly terms, with a 13 percent decline monthly and a 32 percent decline yearly. |
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6. Hk recorded 77b deficit in 2023 2023-03-02 10:04:14 |
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The Hong Kong Government recorded a $77b deficit for the first ten months of the current fiscal year (FY2023), taking into account the proceeds of $65.2b they received from the insurance of green bonds. The city’s government also recorded their expenditures for the period was $643.5b and their revenue was $501.3b, whilst their fiscal reserves stood at $880.1b at the end of January. Considering the revenue and expenditure forecast for the remaining two months, the government’s deficit for FY2023 is expected to be $139.8b, whilst the fiscal reserves will be estimated to be $817.3b by the end of March. |
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7. Strong wind fanned the skyscraper fire 2023-03-03 13:46:31 |
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Deputy chief fire officer Keung Sai-ming said on Friday that dry air and strong wind have made it more difficult for firefighters to douse the blaze that broke out last night at the 48-story luxury Kimpton Hong Kong hotel under construction in Tsim Sha Tsui. He also said construction materials inside the building made it hard for firefighters to advance. |
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