Early October, the stock market has undergone earth-shaking changes, the central government has rescued the stock market by injecting abundant funds, Hang Seng Index has risen two thousand eight hundred points within five days during September 26 to October 3. The stock market has bottomed out and regained its upward momentum. Will the property market also be able to rebound in the near future?
The public believes that the stock market normally bottoms out half year in advance of the property market recovers from the economic downturn. In this business scenario, it is estimated that the property market will bottom out early of next year.
Until now, the sales transactions of the first-hand properties are a curate’s egg. Last Saturday, there were one hundred thirteen 
units of the new residential project Yaho Hub Phase two to be opened for sale. As a result, ninety-three units were sold, and it was equivalent to ninety three percent of the total units. On October 2, one hundred fifty units of The Pavilia Forest Phase two in Kai Tak were opened for sale. Consequently, elven units were sold, and it was equivalent seven percent of the total one hundred and fifty units.
As for the second-hand properties market, it recorded only seven transactions in the top ten housing estates during last Saturday and Sunday. Furthermore, second-hand properties selling at a loss are still prevalent.
The first-hand properties market is not stable. However, the second-hand properties market is still semi-frozen. Indeed, it is evident that the interest rate cut, and the surge of stock market have not contributed to the recovery of the property market. If the stock market continues to rise for months, can the property market be triggered to rebound at last?
With this limited two trillion CNY (Renminbi) providing by the central government, it is extremely difficult to support the long-term rise of the A shares with a market value of 10 trillion CNY, but there is no doubt that it can boost shares prices to rise violently within two to three months.
The A shares prices have been rising rapidly in disregard of the deteriorated basic factors. Short-term trading and speculation have been governed everything. The Hang Seng Index rose almost three thousand points within five days. In the near future, the Hang Seng Index may rise several thousand points more. If it is true, it will likely end within three months. Finally, the shares price will fall from the record high again.
The stock market has risen greatly, giving the indebted shareholders a chance to cash in. If they sell in time, the loss of their holding assets can be greatly reduced. Those general investors may take the opportunity to speculate in this critical moment, or they may have unexpected returns.
A few months later, if the stock market falls back from its peak, it will be difficult to prevent the property market to fall again in the face of the negative spillover effects from the stock market. The current property market is different from the stock market, and it will not be able to rise quickly after hitting the rock bottom. If so, it is still too early to enter the property market now.
