After a quiet season for new developments, Cheung Kong’s The Cost Line II successfully broke the stalemate. The whole projects’ units were oversubscribed by 31 times and broke this year’s record. This Saturday, The Cost Line I were scheduled to sell following the same previous subscription arrangement. The over subscription stood firm at 21 times. If nothing special happens, The 
phase I ‘s units will surely be sold out within days. These two excellent sales record proved the market had been bottomed out. It also confirmed that the property market still has sufficient purchasing power.
Hong Kong government recently announced the local population is 7.49 million. Although the accuracy of the figure has raised suspicion, but it is undeniable that 50,000 approved applications of the Talent Program, plus 150 one-way entry visa per day, have successfully replenished part of the emigrant’s population.
In recent months, the U.S. Federal Reserve persistently raised the interest rates, plus there have been a lot of bankruptcy incidents in domestic real estate companies, coupled with the underpriced emigration listings flooding the market, scared off almost all property market buyers. Cheung Kong’s supreme pricing strategy detonated the purchasing power that had been suppressed for several months. Having Cheung Kong’s successful example , other developers will follow the suit, and more buyers will naturally return to the market.
In fact, the small and medium-sized residential leasing market has started to rebound recently. As domestic students are looking for rental properties in preparation for the new school term, newly arrival of approved applicants of talent program also joined the leasing market, these factors drove the overall market has gradually flourished. The weakness of the stock market also squeezed out the capital which has entering the residential market. Finally, the return of leasing residential units has risen to above 3%.
However, the current investors are still very reluctant, they are only interested in small units, so it is still difficult to find buyers for larger units and luxury houses, so the property market will not fully recover for the time being.
If the government cooperates with measures to cancel the outdated limitation which have hindered the development of property market, the recovery of the property market will return to normal step by step. The property market returns to normal, and the government's revenue from land sales will naturally increase, and the fiscal deficit problem will naturally be solved. Otherwise, if there is a systematic collapse, Hong Kong will fall into the abyss in the coming decades.
